What tax year does this calculator use?

This calculator uses tax year 2026, meaning it applies the brackets, standard deduction, Social Security wage base, mileage rates, and QBI thresholds that govern income earned January 1 through December 31, 2026. All 2026 figures reflect adjustments published in IRS Rev. Proc. 2025-32 and, where applicable, changes enacted by the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025. If you are estimating taxes for a prior year, the figures will differ, and you should refer to the IRS's prior-year tax tables or archived guidance for that year.

Is this tax or financial advice?

No. This calculator produces estimates for planning purposes only. It does not constitute tax advice, legal advice, or financial advice. Results should not be treated as a substitute for a completed tax return or for guidance from a qualified tax professional who can review your complete financial picture. Tax outcomes vary based on individual circumstances, deductions, credits, and life events that a general-purpose calculator cannot account for.

Why might this calculator's result differ from TurboTax or the IRS estimator?

Several factors account for differences. This calculator applies the standard deduction for every user and does not factor in credits (Child Tax Credit, EITC, education credits) or retirement-plan deductions (SEP-IRA, SOLO 401(k)). It also applies a simplified QBI deduction that does not phase out for most users. TurboTax and the IRS Tax Withholding Estimator prompt users for detailed household data and then apply credits and itemized deductions that can substantially lower the final tax owed. All three tools will produce closely matching results for a single filer with no credits, no W-2 income, and no itemized deductions.

How often is this calculator updated?

The calculator is reviewed and updated at the start of each tax year when the IRS releases its annual inflation adjustments (typically in October or November of the preceding year) and whenever major legislation changes the underlying tax law. The 2026 figures were updated following publication of Rev. Proc. 2025-32 and the OBBBA changes that took effect July 4, 2025. The last-updated date appears at the bottom of this page.

Can this calculator handle my state taxes?

The calculator includes state income tax rates for all 50 states and Washington, D.C. Because most states use federal taxable income or AGI as their starting base and then apply their own rates, brackets, and deductions, state results here are simplified estimates. States with graduated brackets (California, New York, etc.) involve more complex calculations, and states with no income tax (Texas, Florida, Nevada, Washington, Wyoming, South Dakota, Alaska) will show $0 state tax. Filers who lived in or worked from more than one state during the year should use each state's official tax resources or a professional to allocate income properly.

Do I have to pay quarterly estimated taxes, and when are they due in 2026?

Yes, if you expect to owe at least $1,000 after subtracting withholding and refundable credits, and your withholding covers less than 90% of your current-year tax liability or 100% of last year's (110% if your 2025 AGI exceeded $150,000). The 2026 due dates under Form 1040-ES are: April 15 (Q1), June 15 (Q2), September 15 (Q3), and January 15, 2027 (Q4). Missing a payment does not produce a failure-to-pay penalty for the full year; instead, the IRS calculates an underpayment penalty on each quarter's shortfall under Form 2210, starting from the missed due date. Paying the safe-harbor amount each quarter prevents that penalty entirely.

How much of each 1099 payment should I set aside for taxes?

A widely used rule of thumb for freelancers in middle income brackets is 25% to 30% of net income after expenses. For a freelancer in the 22% federal bracket with SE tax, state tax, and the QBI deduction applied, the effective total rate on net profit runs roughly 23% to 27% depending on expense levels. Setting aside 30% of each payment provides a comfortable buffer that covers taxes and leaves a small surplus for any true-up at filing. Higher earners in the 24% or 32% bracket, or those in high-tax states, should target 33% to 38%. Divide the total from this calculator by gross receipts to find your own set-aside percentage.

Does this include the QBI deduction?

Yes. The calculator applies the Section 199A Qualified Business Income deduction at 20% of net Schedule C profit, subject to a ceiling: the deduction cannot exceed 20% of taxable income before the deduction is taken. For most freelancers with 2026 taxable income below $201,750 (single) or $403,500 (married filing jointly), the full deduction applies with no additional W-2 wage or property tests. For higher earners or those in specified service trades or businesses (SSTBs), the deduction may be reduced or eliminated, see the edge cases section above. High-earning SSTBs should treat this calculator's result as a lower-bound estimate and verify using Form 8995-A.

Can I deduct business mileage and a home office here?

Business mileage is factored in through the business expenses input. Multiply total business miles by 72.5 cents, the 2026 IRS standard mileage rate per IR-2025-128, and include that figure in your total expenses. The home office deduction, computed under the simplified method ($5 per square foot, up to 300 sq. ft.) or the regular method (percentage of home expenses allocated to business use), also flows through the same field. Enter the deductible amount and the calculator applies it as a Schedule C deduction, reducing both SE tax and income tax.

What if I got paid in cash or never received a 1099 form?

Enter all income in the gross receipts field regardless of how it was paid or whether any form was issued. Under IRS rules, self-employment income is taxable based on when received, not based on what paperwork exists. The $2,000 1099-NEC threshold and the $20,000 / 200-transaction 1099-K threshold are information-reporting rules that govern payers, they do not create a de minimis exclusion for recipients. A freelancer paid entirely in cash or through small platform transactions still owes SE tax on net earnings above $400 per year and must file Schedule SE with their Form 1040.

I have both 1099 and W-2 income, how does that change my result?

Two adjustments matter. First, W-2 wages already subject to Social Security withholding count toward the $184,500 wage base. If combined W-2 wages plus SE net earnings (x 0.9235) total more than $184,500, the 12.4% SS portion of SE tax applies only to the gap, potentially saving hundreds of dollars. Second, employer withholding from W-2 paychecks counts toward the safe-harbor test, which reduces the quarterly estimated payments needed to avoid a Form 2210 penalty. If W-2 withholding covers most of the income tax liability, estimated payments may only need to cover the SE tax component. This calculator is most accurate for filers with 1099 income only; mixed-income filers should adjust the result by subtracting W-2 withholding already applied.

1099 Tax Calculator (2026)

Estimate your federal, state, and self-employment taxes in seconds. Free, no signup, real numbers.

All 50 statesAll 4 filing statusesReal expense inputUpdated for 2026

Your numbers

Live calculation — no button to press.

1099 income

Total income from 1099-NEC, 1099-K, and other freelance/contractor work.

Business expenses

Schedule C deductible expenses — software, office, equipment, etc. Don't include mileage here.

Business miles

Auto-deducted at $0.725/mile (2026 IRS rate). 10,000 miles = $7,250 deduction.

Filing status

State

Currently uses each state's flat top-marginal rate. Progressive state brackets coming soon.

Your tax estimate

Updates live as you type.

Tax year 2026

Total tax owed

—

Enter your 1099 income to see your tax estimate.

Self-employment tax—

Federal income tax—

State income tax—

Effective tax rate (on 1099 income)—

Factor in your tax rate → SE Tax Calculator

Need to send your client an invoice for this income? Free Invoice Generator →

How we got there

Net SE income (after expenses, mileage, health, retirement)—

Half-of-SE-tax deduction—

Standard deduction—

What to do with this number

Set aside monthly—

Move this from your freelance account to a tax savings account every month.

Pay each quarter (estimated total)—

Your combined SE + income tax share of quarterly estimated payments (Form 1040-ES).

Get the full breakdown, monthly savings schedule, and quarterly payment calendar — no signup required.

These results are estimates. Verify with a tax professional before making financial decisions. Updated for the 2026 tax year. How is this calculated?

Download the 2026 Freelancer Tax Checklist

Free PDF with all 2026 quarterly due dates, deduction categories, and the Schedule C → Schedule SE filing flow. Plus occasional freelance tax tips by email.

Need the full tax picture?

Read the Self-Employment Tax Guide → for how SE tax stacks with income tax, then How to Pay Quarterly Estimated Taxes for due dates and safe-harbor rules. Lower your inputs first with Every Freelancer Tax Deduction for 2026.

What this calculator does

Enter your gross 1099 income, your deductible business expenses, and your filing state, and you get back two numbers: your total estimated tax bill for the year and the quarterly estimated payment you should be making now. The total combines self-employment (SECA) tax on net Schedule C profit, federal income tax after the half-SE-tax deduction and the QBI deduction, and state income tax, stacked together on one screen. For the roughly 59 million Americans who receive 1099 income, this single number is the one that determines how much to set aside from every client payment and when to send it to the IRS.

How the calculation works

The calculation follows the same path as a completed 1040 filed by a sole proprietor.

Net Schedule C profit
Gross 1099 income minus ordinary and necessary business expenses (reported on Schedule C, Form 1040) equals net profit. This is the number that drives everything else. Lowering it by claiming legitimate deductions reduces both the SE tax and the income tax simultaneously.
Self-employment (SECA) tax
Net profit is multiplied by 0.9235 to arrive at net earnings from self-employment, the 92.35% factor accounts for the employer-equivalent half of the SE tax that a sole proprietor effectively pays. That adjusted figure is then taxed at 15.3%: 12.4% for Social Security (on earnings up to the $184,500 wage base for 2026) plus 2.9% for Medicare (no wage-base ceiling). The result is calculated on Schedule SE (Form 1040). Net earnings above $200,000 for single filers are subject to an additional 0.9% Additional Medicare Tax, calculated on Form 8959.
Above-the-line deductions
One-half of the SE tax calculated in Step 2 is deductible as an above-the-line adjustment on Schedule 1 (Form 1040, line 15). This deduction lowers adjusted gross income (AGI) and therefore taxable income, but it does not reduce the SE tax itself.
Qualified Business Income (QBI) deduction
Most freelancers and sole proprietors can deduct up to 20% of their qualified business income under Section 199A of the Internal Revenue Code, reported on Form 8995. The deduction is taken below the line, it reduces taxable income further, but again does not affect the SE tax. For 2026, the full 20% deduction is available to single filers with taxable income below $201,750; the deduction phases out between $201,750 and $276,750 for single filers (between $403,500 and $553,500 for married filing jointly). Most freelancers earning under $150,000 net will qualify for the full deduction without restriction.
Federal taxable income and the 2026 brackets
AGI minus the standard deduction ($16,100 for single filers in 2026) minus the QBI deduction equals federal taxable income. That figure runs through the 2026 federal brackets, 10%, 12%, 22%, 24%, 32%, 35%, and 37%, to produce the federal income tax owed.
State income tax
The calculator adds the state income tax for the filer's selected state. State rules vary: some states (like Colorado) apply a flat rate to federal taxable income, while others have graduated brackets and their own deduction structures.
Quarterly estimated payment
Total tax (SE tax plus federal income tax plus state income tax) divided by four equals the baseline quarterly payment under Form 1040-ES. The four 2026 due dates are April 15, June 15, September 15, and January 15, 2027.

Numbers used and why

All 2026 figures, brackets, standard deduction, wage base, mileage rate, are sourced from IRS Rev. Proc. 2025-32, the SSA Contribution and Benefit Base announcement, and IRS News Release IR-2025-128 for the mileage rate. The SE tax mechanics are defined by IRS Topic No. 554 and Schedule SE. Because business expenses reduce both SE tax and federal income tax, each deductible dollar is worth more than its face value, a $1,000 expense saves roughly $153 in SE tax on top of whatever it saves at the filer's marginal income tax rate.

What this calculator does not include

Credits. Child Tax Credit, Earned Income Tax Credit, education credits, retirement savings credits. Applying credits requires household-specific eligibility data that a public calculator cannot reliably collect.
Itemized deductions. The calculator always applies the standard deduction, which is the correct choice for the majority of freelancers; filers who itemize should consult a tax professional.
S-corporation or multi-member LLC scenarios. SE tax treatment differs when a freelancer elects S-corp status and pays themselves a W-2 salary from their own company.
Multi-state apportionment. Freelancers who work across multiple states may owe income tax in more than one state; the calculator handles one state at a time.
Net Investment Income Tax (NIIT). This 3.8% tax under IRC Section 1411 on passive investment income does not apply to active Schedule C earnings.
Prior-year tax safe-harbor comparison. The calculator produces a current-year estimate, not a comparison against prior-year liability; filers with unusually high or variable income should run the safe-harbor math separately using Form 2210.
Retirement plan deductions. SEP-IRA, SOLO 401(k), SIMPLE IRA. These above-the-line deductions can significantly reduce taxable income and are worth calculating separately before entering a final expense total.

These calculations are estimates for educational and planning purposes only, not tax, legal, or financial advice. Tax rules change, edge cases exist, and your specific situation may include factors this calculator does not model. Always confirm figures against the current IRS guidance and your own records before filing or making a financial decision, and consult a qualified tax professional, CPA, or enrolled agent for advice tailored to your circumstances.

Worked example

Scenario: A freelance web developer based in Denver, Colorado, closes out 2026 with $96,400 in gross 1099-NEC receipts and $13,250 in deductible business expenses, software subscriptions, client travel, and professional development. Net Schedule C profit: $83,150.

Net earnings from SE
$83,150 x 0.9235 = $76,789
SE tax
$76,789 is well under the 2026 Social Security wage base ($184,500), so the full 12.4% rate applies. Social Security portion: $76,789 x 12.4% = $9,522. Medicare portion: $76,789 x 2.9% = $2,227. Total SE tax: $11,749
Half-SE deduction
$11,749 / 2 = $5,875 (above-the-line deduction on Schedule 1). Adjusted gross income (AGI): $83,150 - $5,875 = $77,275
Standard deduction
$77,275 - $16,100 (single, 2026) = $61,175 before the QBI deduction.
QBI deduction
Taxable income is well under the $201,750 single-filer phase-out threshold. The QBI deduction is the lesser of (a) 20% of net profit ($83,150 x 20% = $16,630) or (b) 20% of taxable income before the deduction ($61,175 x 20% = $12,235). The binding limit is $12,235. Taxable income: $61,175 - $12,235 = $48,940
Federal income tax (2026 brackets, single)
10% on first $12,400 = $1,240. 12% on $12,400 to $48,940 ($36,540) = $4,385. Federal income tax: $5,625
Colorado state income tax
Colorado applies a flat 4.40% rate to federal taxable income. $48,940 x 4.40% = $2,153
Total tax and quarterly payment
SE tax $11,749 + federal income tax $5,625 + Colorado state income tax $2,153. Total estimated tax: $19,527. Quarterly estimated payment: $19,527 / 4 = $4,882

Result summary

Gross 1099 receipts: $96,400
Schedule C net profit: $83,150
Self-employment tax: $11,749
Federal income tax: $5,625
Colorado state income tax: $2,153
Total estimated tax: $19,527
Quarterly estimated payment: $4,882

This developer's effective total rate on gross receipts is about 20.3%; on net profit, about 23.5%. The $13,250 in business expenses saved roughly $2,024 in SE tax alone (15.3% applied against 92.35% of those expenses), in addition to federal and state income tax savings.

Edge cases and gotchas

You also have a W-2 job

A freelancer who works part-time as an employee and part-time on contracts faces a split Social Security tax picture. W-2 wages already subject to Social Security FICA withholding count toward the $184,500 wage base for 2026. If combined W-2 wages plus SE net earnings (x 0.9235) exceed $184,500, the 12.4% SS portion of SE tax applies only to the remaining room under that ceiling, not to the full net earnings figure. This can significantly reduce SE tax for higher earners with dual income. The Medicare portion (2.9%) still applies to all SE net earnings regardless of W-2 wages. At the same time, W-2 withholding from the employer reduces the quarterly estimated payments needed to avoid a Form 2210 underpayment penalty. A freelancer earning $60,000 in W-2 wages and $50,000 in freelance income should recalculate how much additional withholding or estimated payments are needed after accounting for what the employer already withholds.

You were paid cash or fell under the 1099-NEC reporting threshold, and still owe

For 2026, payers are not required to file a 1099-NEC unless they pay a single contractor $2,000 or more (raised from $600 by the One Big Beautiful Bill Act, effective for payments made after December 31, 2025). Payments made through third-party processors such as PayPal or Venmo are reported on Form 1099-K only if gross payments exceed $20,000 and more than 200 transactions occur. Neither rule changes what a freelancer owes. Under IRS Topic No. 554, all self-employment income is taxable regardless of whether any form is issued. A freelancer paid $1,500 in cash with no paperwork still owes SE tax and income tax on that $1,500. Omitting unreported income from a return is a separate legal issue; this calculator simply asks for accurate gross receipts.

Your 1099-K includes personal-item sales or goods sold at a loss

Form 1099-K from payment platforms reports gross receipts, it does not distinguish business revenue from personal-item sales. A freelancer who sold a used laptop on eBay for $900 through PayPal may find that transaction bundled into their 1099-K total. Proceeds from selling a personal asset at or below its original purchase price generally do not produce taxable income. The IRS allows filers to reduce 1099-K amounts by documenting the original cost basis of items sold at a loss. Entering the full 1099-K gross into this calculator as business income will overstate the tax if some receipts come from non-business, below-cost sales. Freelancers who mix business and personal transactions through a single payment account should separate the two carefully before entering gross receipts.

Your taxable income crosses the QBI phase-out and your business is an SSTB

For single filers, the full 20% QBI deduction is available below $201,750 of taxable income. Between $201,750 and $276,750, the deduction phases down based on the business type. Specified service trades or businesses (defined in Section 199A(d) to include law, accounting, consulting, financial services, and health) lose the deduction entirely above $276,750 for single filers ($553,500 for married filing jointly). A freelance consultant earning $220,000 in net profit who expects the full 20% QBI deduction may find the deduction shrinks or disappears entirely. This calculator provides a full-deduction estimate for most users; high earners and anyone in consulting, legal, accounting, or other professional-services fields should recalculate using Form 8995-A, which applies the W-2 wage and qualified property limits to determine how much of the deduction survives.

Common questions

Sources and references

All tax constants, formulas, and factual claims in this calculator are sourced from U.S. government primary sources. Content is updated annually to reflect the current year's IRS Revenue Procedure and SSA wage base announcements.

Topic No. 554, Self-Employment TaxSE tax rate (15.3% = 12.4% SS + 2.9% Medicare), 92.35% net-earnings factor, $400 filing threshold, Additional Medicare Tax thresholds, taxability of all SE income
Contribution and Benefit Base (SSA Office of the Chief Actuary)2026 Social Security taxable maximum ($184,500) used to cap the 12.4% SS portion of SE tax
Revenue Procedure 2025-32 (2026 inflation adjustments)Primary authority for the 2026 federal brackets, standard deductions ($16,100 / $32,200 / $24,150), and QBI taxable-income thresholds
About Form 8995, Qualified Business Income Deduction Simplified ComputationSection 199A 20% QBI deduction mechanics and the taxable-income limit on the deduction
IRS News Release IR-2025-128: 2026 Standard Mileage Rates2026 business standard mileage rate of 72.5 cents per mile
Treasury, IRS issue proposed regulations reflecting OBBBA changes to third-party reporting thresholds2026 OBBBA changes to 1099-NEC ($2,000) and 1099-K ($20,000 / 200-transaction) reporting thresholds
Topic No. 306, Penalty for Underpayment of Estimated TaxEstimated-tax safe-harbor rule (90% current year / 100% prior year / 110% if prior-year AGI > $150,000)
Publication 509 (2026), Tax Calendars2026 quarterly estimated-tax due dates (April 15, June 15, September 15, January 15, 2027)
Individual Income Tax Guide (Colorado Department of Revenue)Colorado 4.40% flat income tax rate used only in the worked example

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FreelanceMath provides general financial information for educational purposes only. This is not professional tax, legal, or financial advice. Always verify with a qualified accountant or tax advisor.

Last updated June 1, 2026 · See our Methodology

Your numbers

Your tax estimate

How we got there

What to do with this number

Download the 2026 Freelancer Tax Checklist

Need the full tax picture?

What this calculator does

How the calculation works

Numbers used and why

What this calculator does not include

Worked example

Edge cases and gotchas

You also have a W-2 job

You were paid cash or fell under the 1099-NEC reporting threshold, and still owe

Your 1099-K includes personal-item sales or goods sold at a loss

Your taxable income crosses the QBI phase-out and your business is an SSTB

Common questions

What tax year does this calculator use?

Is this tax or financial advice?

Why might this calculator's result differ from TurboTax or the IRS estimator?

How often is this calculator updated?

Can this calculator handle my state taxes?

What's the difference between a 1099-NEC and a 1099-K?

Do I have to pay quarterly estimated taxes, and when are they due in 2026?

How much of each 1099 payment should I set aside for taxes?

Does this include the QBI deduction?

Can I deduct business mileage and a home office here?

What if I got paid in cash or never received a 1099 form?

I have both 1099 and W-2 income, how does that change my result?

Sources and references

Related tools

Quarterly Tax Estimator

1099 vs W-2 Comparison Calculator

Self-Employment Tax Calculator

Related guides

How to Pay Quarterly Estimated Taxes (1099 Freelancer Guide 2026)

Every Freelancer Tax Deduction for 2026: The Complete Schedule C Checklist

Complete Self-Employment Tax Guide (2025–2026)

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