What is the self-employment tax rate?

The self-employment tax rate is 15.3%. This is made up of 12.4% for Social Security (up to an annual limit) and 2.9% for Medicare (on all net earnings). This rate is double the FICA rate for W-2 employees because 1099 contractors pay both the employee and employer portions.

How often do 1099 workers pay taxes?

Independent contractors are generally required to pay estimated taxes quarterly (four times a year). The deadlines are typically April 15, June 15, September 15, and January 15 of the following year.

1099 Tax Calculator (2026) for Freelancers & Contractors

If you're an independent contractor, freelancer, or gig worker, you receive a 1099 form instead of a W-2. This means no taxes are withheld from your pay. Use our free 1099 tax calculator to estimate your self-employment tax and plan for your quarterly tax payments.

Total 1099 Income ($)

Estimated Business Expenses ($)

Filing Status

Your Estimated 2026 Tax Liability

Estimated Total Annual Tax

$0.00

Self-Employment Tax

$0.00

Federal Income Tax

$0.00

Estimated Quarterly Payment

$0.00

Understanding 1099 Self-Employment Taxes

When you're self-employed, the IRS considers you both the employee and the employer. This means you are responsible for paying the full FICA tax, which is known as the **Self-Employment Tax**.

Self-Employment Tax Rate: 15.3% total.
Social Security Portion: 12.4% on earnings up to $168,600 (2024/25 limit).
Medicare Portion: 2.9% on all your net earnings.

Our calculator first determines your net earnings by subtracting business expenses from your gross 1099 income. The 15.3% tax is then applied to 92.35% of your net earnings, as per IRS rules.

How to Pay Your 1099 Taxes

Since no taxes are withheld from your payments, you are required to pay estimated taxes to the IRS throughout the year. These payments cover both your self-employment tax and your federal income tax.

Quarterly Estimated Tax Payments

Payments are typically due four times a year. The deadlines are:

April 15 (for income Jan 1 – Mar 31)
June 15 (for income Apr 1 – May 31)
September 15 (for income Jun 1 – Aug 31)
January 15 of next year (for income Sep 1 – Dec 31)

Our calculator provides an estimated quarterly payment amount to help you set aside the right amount of money.

Frequently Asked Questions

What is self-employment tax?

Self-employment tax is the Social Security and Medicare tax (FICA) for individuals who work for themselves. At 15.3%, it's double the rate for W-2 employees because you pay both the employee (7.65%) and employer (7.65%) portions.

What counts as a business expense?

A business expense is any cost that is "ordinary and necessary" for your trade or business. Common examples include home office expenses, vehicle mileage, software subscriptions, office supplies, and professional development costs. Deducting these expenses lowers your net earnings and reduces your tax bill.

Can I deduct half of my self-employment tax?

Yes. The IRS allows you to deduct the "employer" half of your self-employment tax (7.65%) from your adjusted gross income (AGI). Our calculator automatically factors this deduction into your federal income tax estimate.