What this 1099 calculator estimates
Use it to turn contractor or freelance revenue into a clearer after-tax number before you set quarterly estimates or compare a 1099 offer to a W-2 salary.
- Net profit after ordinary business expenses (simplified Schedule C style).
- Self-employment tax using Schedule SE’s 92.35% net-earnings factor, Social Security at 12.4% up to a $184,500 wage base, and Medicare at 2.9% (combined ~15.3% on net earnings), plus Additional Medicare Tax where filing-status thresholds apply.
- Federal income tax with the deductible half of SE tax, optional simplified 20% QBI deduction, and the standard deduction ($16,100 single / $32,200 married filing jointly).
- State income tax for all 50 states and D.C. Browse the full state rate tables.
How to read your results
The headline figure is estimated take-home per period (annual, quarterly, or monthly). Quarterly divides the annual estimate by four so you can plan set-asides — it is not a Form 1040-ES safe-harbor worksheet.
Effective tax rate here means total estimated SE tax + federal + state tax divided by net profit. Local wage taxes are modeled on the W-2 tools when you pick a city or county; this 1099 estimate does not add local occupational taxes, sales tax, or credits you may claim when you file.
Practical ways to use a 1099 estimate
Compare 1099 vs W-2 offers. Contract rates often look higher before you account for both halves of Social Security/Medicare and the lack of employer withholding. Run the same net income through the W-2 calculator for a side-by-side feel.
Plan quarterly set-asides. Switching the display to quarterly shows a rough amount to reserve each quarter for SE tax and income tax.
Stack W-2 wages carefully. If you also have a day job, enter other W-2 wages so Social Security SE tax only applies to the remaining wage base.
Frequently asked questions
Answers to common questions about self-employment tax, QBI, and quarterly estimates.
How does this 1099 calculator work?
Enter gross self-employment income, business expenses, filing status, and state. The calculator estimates net profit, Schedule SE self-employment tax (92.35% of net profit), the deductible half of SE tax, an optional simplified 20% QBI deduction, federal income tax with the standard deduction, and state income tax. You can view results annually, quarterly, or monthly.
What is self-employment tax?
Self-employment tax covers Social Security and Medicare for people who work for themselves. For 2026 it is generally 12.4% Social Security (up to the annual wage base) plus 2.9% Medicare on net earnings from self-employment, with Additional Medicare Tax applying above filing-status thresholds. Schedule SE multiplies net profit by 92.35% to get net earnings.
What is the QBI deduction in this tool?
The Qualified Business Income deduction can reduce taxable income by up to 20% of qualified business income for many pass-through businesses. This calculator uses a simplified 20% estimate and does not model SSTB limitations or income phaseouts. Turn it off if you want a more conservative federal tax figure.
Does the quarterly view equal Form 1040-ES?
No. Choosing quarterly simply divides the annual tax and take-home estimate by four for planning. Official estimated payments use Form 1040-ES worksheets, prior-year safe harbors, and your full tax situation.
Why enter other W-2 wages?
If you also earn employee wages, those wages usually use up part of the Social Security wage base first. Entering other W-2 wages prevents the calculator from overstating Social Security self-employment tax on your 1099 income.
Is this the same as a W-2 paycheck estimate?
No. W-2 employees pay only the employee share of FICA and usually have tax withheld each payday. Contractors generally pay both shares via SE tax and must plan for estimated payments. Use the W-2 calculator for employee wages and this tool for self-employment income.
Disclaimer
This tool is for education and planning. It is not tax, legal, or financial advice. QBI is simplified (no SSTB or income phaseouts). State treatment reduces net profit by half of SE tax and does not model every state conformity rule. Review the published rates and sources, and for official guidance see the IRS, Social Security Administration, and your state revenue department. Explore more tools on the MyAfterTax calculator hub.