Finance
1099 Tax Calculator
Enter your 1099 income, business expenses, and filing status to estimate your total federal tax (self-employment + income tax), what percentage to set aside, and your quarterly estimated payment.
Quick answer: Most freelancers should set aside about 25–30% of their 1099 income for federal taxes — covering 15.3% self-employment tax plus federal income tax. Divide the total by four for your quarterly estimated payments.
How it works
1. Start with net profit
Subtract business expenses from your 1099 income to get net profit. Taxes are calculated on the profit, not the gross — every legitimate deduction lowers the bill.
2. Add self-employment tax
Net profit is hit with 15.3% self-employment tax (on 92.35% of it). You deduct half of that above the line, which lowers your income tax.
3. Layer on income tax and divide by four
Federal income tax applies to your taxable income after the standard deduction and the 20% QBI deduction. Add the two taxes, set that aside, and pay a quarter each estimated-tax deadline.
Frequently asked questions
How much should I set aside for 1099 taxes?
A common rule of thumb is 25–30% of your 1099 income for federal taxes — enough to cover 15.3% self-employment tax plus your income-tax bracket. Higher earners and high-tax states should lean toward the top of that range or above.
When are quarterly taxes due?
Estimated taxes are generally due April 15, June 15, September 15, and January 15. Pay roughly a quarter of your projected annual tax each deadline to avoid an underpayment penalty.
Does this include state tax?
No — this estimates federal self-employment and income tax only. Add your state's income tax (and any local tax) on top, and confirm with a CPA before filing.