How much should I set aside for taxes on 1099 income?

Run your real numbers, but the common range is 20 to 35 percent of net profit for federal taxes: 15.3 percent SE tax on most of it plus income tax in your bracket, softened by the half-SE and QBI deductions. Add your state's rate on top. This calculator's set-aside percent is that figure for your inputs.

Why do the self-employed pay 15.3 percent when employees pay 7.65?

Employees and employers split FICA down the middle: 6.2 plus 1.45 percent each. When you are self-employed you are both parties, so you pay both halves, 12.4 percent Social Security plus 2.9 percent Medicare. Two offsets soften it: the tax applies to only 92.35 percent of profit, and half of it is deductible against income tax.

What is the QBI deduction?

The qualified business income deduction lets most self-employed people and pass-through owners deduct 20 percent of qualified business income from taxable income (IRC Section 199A, made permanent in 2025). It reduces income tax but never SE tax. High earners in specified service fields like law, health, and consulting face limits this tool does not model.

Do I still owe SE tax if I also have a W-2 job?

Yes, on your self-employment profit. The 2.9 percent Medicare part always applies, but your W-2 wages use up the Social Security wage base first, so if your job already pays you above the base, the 12.4 percent part of SE tax disappears. Enter your wages here to see that coordination.

Do I need to pay quarterly estimated taxes?

Usually, yes. If you expect to owe $1,000 or more at filing, the IRS expects payments through the year (April, June, September, and January) or penalties can apply. The quarterly estimated tax calculator turns this tool's total into safe-harbor quarterly payments.

Self-Employment Tax Calculator

Estimate 2026 taxes on 1099 income: the 15.3% self-employment tax, the half-SE deduction, the 20% QBI deduction, federal income tax, and what to set aside.

X f in

Self-employment tax

$8,477.73

Social Security portion: $6,870.84
Medicare portion: $1,606.89
Additional Medicare (0.9%): $0.00
Half-SE-tax deduction: $4,238.87
QBI deduction: $7,932.23
Taxable income: $31,728.91
Federal income tax: $3,559.47
Total federal tax: $12,037.20
Tax from self-employment: $12,037.20
Set aside from each profit dollar: 20.06%

Split this into quarterly payments

Sends your total federal tax to the quarterly estimated tax calculator.

Quick answer: With the example inputs this page loads by default, the headline result (Self-employment tax) comes to $8,477.73. Estimate 2026 taxes on 1099 income: the 15.3% self-employment tax, the half-SE deduction, the 20% QBI deduction, federal income tax, and what to set aside. Change any input above and every figure updates instantly in your browser.

Figures shown are for the 2026 tax year. The calculator always applies the current year's figures.

Your inputs never leave your browser, and nothing is stored. See our privacy policy .

Fact-check: results on this page are verified against an independently coded reference oracle that covers all 106 calculators on this site. See how we verify .

Self-employment tax is 15.3 percent of 92.35 percent of your net profit: 12.4 percent for Social Security up to the $184,500 wage base and 2.9 percent for Medicare, on top of regular income tax. This calculator runs your 1099 profit through the 2026 rules, applies the half-SE and QBI deductions, and shows the share of each profit dollar to set aside.

What this result means

The set-aside percent is the number to act on: move that share of every payment into a separate account so quarterly estimated taxes never surprise you. For many full-time freelancers it lands between 20 and 35 percent, and it rises with income because the brackets climb while SE tax stays flat until the wage base. The half-SE and QBI deductions soften the income tax side, which is why the total is lower than adding 15.3 percent to your bracket rate. This is an estimate for education, not tax advice.

Assumptions

Self-employment tax follows Schedule SE for 2026: net earnings are 92.35 percent of your net profit; no SE tax is due when net earnings are under $400; the Social Security part is 12.4 percent of net earnings up to the $184,500 wage base (your W-2 wages use up the base first); the Medicare part is 2.9 percent of all net earnings.
The 0.9 percent Additional Medicare Tax applies to net earnings above your filing status threshold ($200,000 single and head of household, $250,000 married filing jointly), with the threshold reduced by W-2 wages (Form 8959). It is reported separately because it is technically not part of SE tax.
Half of the SE tax is deducted above the line before income tax, mirroring how employees never pay income tax on the employer's FICA half.
The QBI deduction, when applied, is 20 percent of qualified business income (net profit minus the half-SE deduction), limited to 20 percent of taxable income before the deduction (IRC 199A, made permanent by the One Big Beautiful Bill Act). The income phase-outs and the specified-service-business limits for high earners are not modeled.
Federal income tax uses the 2026 brackets and the standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household); no itemizing. W-2 wages are included in the income tax so your profit is taxed in the brackets it actually lands in.
The set-aside figures isolate what self-employment adds: total tax minus the income tax your W-2 wages alone would owe. W-2 FICA withholding is not modeled because your employer handles it; retirement-plan contributions (SEP or solo 401(k)), health-insurance deductions, and tax credits are not modeled and would lower the real bill.
State income tax is not included; most states also tax self-employment profit as ordinary income. This is an estimate for educational purposes only, not tax advice. Confirm current figures with the IRS or a tax professional.

Key terms

Definitions for the terms this calculator uses, in our finance glossary .

How it works

Self-employment income carries two federal taxes, and this calculator computes both.

Self-employment tax (Schedule SE). Net earnings are 92.35 percent of your Schedule C net profit. On that figure you pay 12.4 percent Social Security up to the 2026 wage base of $184,500 and 2.9 percent Medicare with no cap. If you also have W-2 wages, they use up the Social Security wage base first, so high W-2 earners can owe little or none of the 12.4 percent part. No SE tax is due at all when net earnings are under $400. Above the Additional Medicare threshold ($200,000 single, $250,000 married filing jointly, reduced by W-2 wages per Form 8959), an extra 0.9 percent applies.

Federal income tax. Half of the SE tax is deducted above the line, mirroring how employees never pay income tax on the employer’s FICA half. Adjusted gross income is wages plus profit minus that half. The 20 percent qualified business income deduction (IRC 199A, made permanent by the One Big Beautiful Bill Act) then applies to profit minus the half-SE deduction, limited to 20 percent of taxable income before the deduction. What remains, minus the 2026 standard deduction, runs through the 2026 brackets.

The set-aside figures isolate what your 1099 income adds: total tax minus the income tax your W-2 wages alone would owe, expressed in dollars and as a percent of profit.

Worked example

$60,000 net profit, single, no W-2 wages, QBI applied, for 2026.

Net earnings: $60,000 x 92.35% = $55,410.
SE tax: 12.4% x $55,410 ($6,870.84) + 2.9% x $55,410 ($1,606.89) = $8,477.73.
Half-SE deduction: $4,238.87. AGI: $55,761.14.
QBI deduction: 20% of taxable income before QBI ($39,661.14) = $7,932.23 (the taxable-income limit binds). Taxable income: $31,728.91.
Income tax: 10% of $12,400 + 12% of $19,328.91 = $3,559.47.
Total federal tax: $12,037.20, about 20.06 percent of profit to set aside.

Scope and limitations

Federal only, for 2026, standard deduction. Not modeled: state income tax, the QBI income phase-outs and specified-service limits, SEP or solo 401(k) contributions, the self-employed health insurance deduction, tax credits, and W-2 FICA withholding (your employer handles that side). This is an estimate for education, not tax advice.

Sources

Frequently asked questions

How much should I set aside for taxes on 1099 income?: Run your real numbers, but the common range is 20 to 35 percent of net profit for federal taxes: 15.3 percent SE tax on most of it plus income tax in your bracket, softened by the half-SE and QBI deductions. Add your state's rate on top. This calculator's set-aside percent is that figure for your inputs.
Why do the self-employed pay 15.3 percent when employees pay 7.65?: Employees and employers split FICA down the middle: 6.2 plus 1.45 percent each. When you are self-employed you are both parties, so you pay both halves, 12.4 percent Social Security plus 2.9 percent Medicare. Two offsets soften it: the tax applies to only 92.35 percent of profit, and half of it is deductible against income tax.
What is the QBI deduction?: The qualified business income deduction lets most self-employed people and pass-through owners deduct 20 percent of qualified business income from taxable income (IRC Section 199A, made permanent in 2025). It reduces income tax but never SE tax. High earners in specified service fields like law, health, and consulting face limits this tool does not model.
Do I still owe SE tax if I also have a W-2 job?: Yes, on your self-employment profit. The 2.9 percent Medicare part always applies, but your W-2 wages use up the Social Security wage base first, so if your job already pays you above the base, the 12.4 percent part of SE tax disappears. Enter your wages here to see that coordination.
Do I need to pay quarterly estimated taxes?: Usually, yes. If you expect to owe $1,000 or more at filing, the IRS expects payments through the year (April, June, September, and January) or penalties can apply. The quarterly estimated tax calculator turns this tool's total into safe-harbor quarterly payments.

Related calculators

Learn how this works

New to this topic? Our companion guide explains it in plain language: Quarterly Taxes for 1099 Workers: What to Pay and What to Set Aside

By Sam Sage Last reviewed July 2026.