1099 Tax Calculator
Estimate what you’ll owe on freelance or contractor income for the 2025 tax year — self-employment tax, federal income tax and the quarterly payment to set aside.
Reviewed by the CalcCafe editorial team · Last updated 18 July 2026 · How we test our tools
Example
A single freelancer bills $80,000 on 1099s and has $12,000 of business expenses, leaving $68,000 of net self-employment profit. SE tax applies to 92.35% of that ($62,798): 15.3% comes to $9,608. Taxable income is then $68,000 − $4,804 (half the SE tax) − $15,000 (2025 standard deduction) = $48,196, producing federal income tax of about $5,545. Total federal bill: $15,153 — an effective 22.3% of net profit — or about $3,788 per quarterly estimated payment. State income tax would be extra.
How it works
Net profit = gross 1099 income − business expenses. Self-employment tax is charged on 92.35% of net profit: 12.4% Social Security on that base up to the 2025 wage cap of $176,100, plus 2.9% Medicare on all of it. Taxable income = net profit − half the SE tax − the 2025 standard deduction ($15,000 single, $30,000 married filing jointly). Federal income tax is then applied through the 2025 brackets (10% to 37%; married thresholds are double the single ones). Total tax = SE tax + income tax, and the quarterly estimate is one quarter of that.
Good to know
You typically receive a 1099-NEC from each client that paid you $600 or more for services as a non-employee, and a 1099-K from payment platforms and marketplaces once their reporting threshold is met. Either way, the form is informational — you owe tax on all self-employment income whether or not a form arrives. Unlike a W-2 job, nothing has been withheld, so the full bill lands on you at filing time unless you pay as you go.
Self-employment tax is the piece that surprises new freelancers. Employees split Social Security and Medicare with their employer (7.65% each); when you’re self-employed you pay both halves — 15.3% — yourself. The law softens this two ways: only 92.35% of net profit is subject to SE tax (mirroring the employer-half exclusion), and you deduct half the SE tax from income before computing income tax. Social Security’s 12.4% portion stops at $176,100 of earnings in 2025; the 2.9% Medicare portion has no cap, and an extra 0.9% Medicare surtax applies above $200,000 ($250,000 joint), which this tool does not model.
The IRS expects payment through the year via Form 1040-ES estimated payments, due roughly April 15, June 15, September 15 and January 15 of the following year. Underpay and you owe an interest-based penalty even if you settle in full in April. Safe harbors help: pay at least 90% of this year’s tax or 100% of last year’s (110% if your prior-year AGI topped $150,000) and you avoid the penalty. The quarterly figure shown here is simply the annual estimate divided by four — front-load it if your income is lumpy.
This is a federal-only planning estimate. It excludes state and local income tax (0% in Texas or Florida, over 10% at the top in California), and it also ignores the Qualified Business Income (QBI) deduction, which can trim up to 20% off qualifying pass-through income and materially lower the income-tax portion — so many freelancers will owe somewhat less than shown. It assumes the standard deduction rather than itemizing, and no other income, credits, or retirement contributions. Deductible expenses are your lever: home office, equipment, software, professional services, business mileage, health insurance premiums and solo-401(k)/SEP-IRA contributions all reduce the taxable base — keep records for each.
Frequently asked questions
What is the self-employment tax rate for 2025?
15.3% — 12.4% Social Security plus 2.9% Medicare — applied to 92.35% of your net self-employment profit. The Social Security portion stops at $176,100 of earnings in 2025; Medicare has no cap. You then deduct half the SE tax from income before income tax is figured.
Do I have to pay quarterly estimated taxes on 1099 income?
Generally yes, if you expect to owe $1,000 or more for the year. Payments are made with Form 1040-ES, due mid-April, mid-June, mid-September and mid-January. Paying at least 90% of the current year's tax or 100% of last year's (110% for higher incomes) protects you from the underpayment penalty.
Does this calculator include state income tax?
No — it estimates federal self-employment tax and federal income tax only. State and local income taxes range from zero in states like Texas and Florida to over 10% in top brackets elsewhere, so budget for them separately if your state levies one.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser. Your income and expense figures never leave your device, and it is completely free with no sign-up.
People also ask
How much should I set aside for taxes on 1099 income?
A common rule of thumb is 25–30% of net profit for federal taxes at moderate incomes — the example on this page works out to about 22% federal — plus whatever your state charges. Setting aside 30% into a separate account as you get paid covers most freelancers comfortably.
What expenses can I deduct as a 1099 contractor?
Ordinary and necessary business costs: home office, computers and equipment, software subscriptions, business mileage or vehicle expenses, phone and internet (business share), professional fees, insurance, advertising, and contract labor. Self-employed health insurance premiums and SEP-IRA or solo-401(k) contributions are deducted separately and also reduce your bill.
What is the 92.35% factor in self-employment tax?
SE tax is charged on 92.35% of net profit rather than 100%. The 7.65% haircut mirrors the employer half of FICA that a W-2 worker's employer pays and the worker never sees, keeping the self-employed base roughly comparable to an employee's wage base.
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Sources & references
These tools follow our methodology and provide educational estimates only — verify important figures with a qualified professional.