TAX · FREELANCE
1099 Tax Calculator
Estimate federal income tax and self-employment tax on your 1099 contractor income. Deduct business expenses and see your quarterly estimated payment amounts.
LAST REVIEWED · APR 10, 2026 · BY M. REYES, CPA
1099 IncomeReset
Gross 1099 Income
$100,000
$0$500K
Business ExpensesDeductible costs
$15,000
$0$200K
Filing Status
Live ResultsUpdated
Total taxSE + income tax
$21,003
Net incomeGross minus expenses
$85,000
Self-employment taxSS + Medicare
$12,010
Income taxFederal brackets
$8,993
Quarterly paymentTotal / 4
$5,251
Effective rate
24.7%
Cost comparison
SE Tax
$12,010
Income Tax
$8,993
Take-home
$63,997
1099 contractors pay both employer and employee FICA portions.
You need
$21,003
Est. cost
24.7%
1099 IncomeReset
Gross 1099 Income
$100,000
$0$500K
Business ExpensesDeductible costs
$15,000
$0$200K
Filing Status
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How 1099 taxes work
As a 1099 contractor, you're both the employer and the employee. That means you pay the full 15.3% FICA (instead of the 7.65% that W-2 employees pay) plus federal income tax. The upside: you can deduct legitimate business expenses before calculating either tax.
Common 1099 deductions
- Home office — $5/sq ft (simplified) or actual expenses
- Vehicle — 67 cents/mile (2026 standard rate)
- Equipment — computers, tools, software
- Health insurance — 100% deductible for SE individuals
- Retirement — SEP-IRA (up to 25% of net earnings), Solo 401(k)
1099 vs. W-2: the real cost
A $100K 1099 income and a $100K W-2 salary are not equivalent. The 1099 worker pays ~$14K more in FICA but can deduct expenses and retirement contributions that W-2 workers cannot.
Methodology. Net income = gross 1099 income minus business expenses. Self-employment tax: net x 92.35% x 15.3% (12.4% SS + 2.9% Medicare). Half of SE tax is deducted from AGI. Federal income tax uses 2026 brackets after standard deduction. Quarterly payment = total tax / 4.
Sources
- IRS Schedule C instructions (2026)
- IRS Schedule SE instructions (2026)
- IRS Form 1040-ES (Estimated Tax for Individuals)
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RELATED TAX CALCULATORS
Self-Employment Tax Calculator ↗
Estimate your self-employment tax (Social Security + Medicare) plus federal income tax. Includes the deductible half of SE tax and quarterly payment amounts.
Quarterly Tax Calculator ↗
Estimate your quarterly estimated tax payments for 2026. Includes safe harbor calculations and IRS due dates to help you avoid underpayment penalties.
Take-Home Pay Calculator ↗
Estimate your after-tax income by paycheck. Accounts for 2026 federal brackets, state income tax, Social Security, and Medicare withholding.
Frequently asked questions
What's the difference between 1099-NEC and 1099-MISC? +
1099-NEC reports nonemployee compensation (freelance/contractor payments of $600+). 1099-MISC is for other types of payments like rent, prizes, and royalties. Most freelancers receive a 1099-NEC.
Do I owe taxes if I made less than $600? +
Yes. The $600 threshold is for the payer's reporting obligation, not your tax obligation. All self-employment income over $400 is subject to SE tax, and all income must be reported.
Can I deduct health insurance premiums? +
Self-employed individuals can deduct 100% of health insurance premiums for themselves, their spouse, and dependents — but only on Line 16 of Schedule 1, not on Schedule C. The deduction reduces income tax but not SE tax.
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