1099 contractor tax calculator
To see how much you will probably have to pay in quarterly taxes, enter your income and expenses below.
How to calculate your self-employment taxes as a 1099 contractor
If you make freelance money on the side, and don’t have a business to claim it under, it may complicate your tax situation. We created this calculator to help.
“1099” income is any income you earned as an individual outside full-time employment, and it’s called that because any contract employers must report it on a form they file at tax time called 1099-NEC. If they pay you more than $2,000 in a calendar year, they must file that form, which effectively tells on you to the IRS. And anyway, if you earn at least $1,000 in freelance profit in a year, you must pay quarterly estimated taxes on that total.
It is important the IRS says you pay taxes on the “profit,” not just income. Freelancers pay taxes on the difference between their expenses and income—aka profit, or in finance terms “net income.” That means that if you earn $100,000 from a client but have to pay $75,000 out to other contractors, you don’t have to pay taxes on the total—just the $25,000 spread. That’s good. But it also means you must keep careful records for all your income and business-related expenses. Which probably means using a spreadsheet or bookkeeping software.
Every quarter-ish, you’ll have to pay the government the tax estimates shown in the calculator above via an account you create with the Electronic Federal Tax Payment System (EFTPS). Note that quarterly estimated taxes are not exactly quarterly. One of the “quarters” is two months, another is four. See the 2026 dates here.
Note: If you own the business, you do not have to issue yourself a 1099-NEC form. If your business is an LLC, you’d pay yourself via distributions which you report on your standard tax return. If you’re a partial owner of a multi-member LLC or LLP, you’d report your income via a K-1. And if a C-corp, or another entity filing as a C-corp, you’d employ yourself as a W-2 employee.
How 1099 income taxes work: You’ll pay federal and state tax on 1099 profit, not income. This is something you self-report, so you must keep careful track. Many freelancers mistakenly pay estimated taxes on the full, say $20,000, whereas they only needed to pay taxes on the $12,000 that was left after they paid their other expenses.
Included in your estimated taxes are:
- Federal self-employment tax (15.3%)
- Federal income tax (graduated, based on your total income)
To use the calculator above, enter your overall income as well as your expenses. The calculator is loaded with the latest federal income tax brackets and will show you the tax you owe, the quarterly estimated payment you should make, and your effective tax rate on this income.
Important notes: This does not take into account any tax deductions or other income. It’s just an estimate of your 1099 income. If you make both 1099 and W-2 income, those stack on your tax return, and affect your tax bracket. This calculator also doesn’t take into account any deductions, such as a home office deduction. For a truly precise number, work with a tax accountant.
