United States · Self-employed · Tax year 2026
1099 tax set-aside calculator.
Find the percentage of every 1099 payment to put aside for federal self-employment tax, federal income tax and state tax. Runs in your browser; nothing you enter is sent or stored.
A single filer with $80,000 of net profit in 2026 owes about $11,304 of self-employment tax and $7,527 of federal income tax, so should set aside about 23.5% of every payment before state tax. Enter your own numbers below.
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How this is calculated
- Self-employment earnings = net profit × 92.35%. Below $400 there is no SE tax.
- Social Security = 12.4% of those earnings, up to the 2026 wage base of $184,500.
- Medicare = 2.9% of all earnings. Additional Medicare = 0.9% of earnings above $200,000 (single or head of household), $250,000 (joint) or $125,000 (separate). Those thresholds are set by law and are not indexed.
- Half of SE tax (not the 0.9%) is deducted from income.
- Taxable income = net profit − half of SE tax − 2026 standard deduction ($16,100 single or separate, $32,200 joint, $24,150 head of household).
- Federal income tax comes from the 2026 brackets (10% to 37%), applied band by band.
- State tax = your chosen percentage × net profit.
- Set-aside % = (SE tax + federal income tax + state tax) ÷ net profit. Per payment = payment × that percentage.
Worked example: single, $80,000 net profit, no state tax
| Step | Amount |
|---|---|
| SE earnings ($80,000 × 92.35%) | $73,880.00 |
| Social Security (12.4%) | $9,161.12 |
| Medicare (2.9%) | $2,142.52 |
| SE tax | $11,303.64 |
| Taxable income ($80,000 − $5,651.82 − $16,100) | $58,248.18 |
| Income tax ($1,240 + $4,560 + 22% of $7,848.18) | $7,526.60 |
| Total, 23.5% of profit | $18,830.24 |
On a $1,000 payment that is $235.38 to set aside. These are the same formulas the calculator runs.
Sources
- IRS Schedule SE instructions and Publication 334 (92.35%, 12.4%, 2.9%, half-SE deduction)
- IRS Topic no. 751 and the SSA contribution and benefit base ($184,500 for 2026)
- IRS Rev. Proc. 2025-32 (2026 brackets and standard deduction)
- IRS Form 8959 (Additional Medicare Tax thresholds)
Cite this page: TNAADO Tools, "1099 Tax Set-Aside Calculator 2026," tools.tnaado.ca/calculators/tax/1099-tax-set-aside-calculator/, verified October 2, 2026.
Frequently asked questions
How much should I set aside for taxes on 1099 income?
A common range for 2026 is roughly 21% to 30% of net profit before state tax. A single filer with $50,000 of net profit should save about 20.9%, with $80,000 about 23.5% and with $150,000 about 28.9%, using the standard deduction and no state tax. The figure rises with income because self-employment tax is a flat 15.3% on most of it and the income tax brackets climb.
Do I pay tax on my 1099 gross income or my profit?
On profit. Self-employment tax and income tax apply to net profit: 1099 income minus ordinary and necessary business expenses (Schedule C). Enter your expected profit, not the total on your 1099-NEC or 1099-K. If you save a percentage of every payment, the percentage from this page is correct for payments that are mostly profit.
What is self-employment tax and why is it 15.3%?
It is the Social Security and Medicare tax you pay both as employee and employer: 12.4% Social Security plus 2.9% Medicare. It is charged on 92.35% of net profit, which makes the effective rate about 14.13% of profit. Social Security stops at the 2026 wage base of $184,500 of self-employment earnings; Medicare has no cap, and an extra 0.9% applies above $200,000 for single filers.
Can I deduct half of my self-employment tax?
Yes. Half of your SE tax is an adjustment to income on Schedule 1, so it lowers the income that your federal brackets apply to. It does not lower the SE tax itself. This calculator subtracts it before applying the 2026 standard deduction and brackets.
Do I need to make quarterly estimated payments?
Generally yes if you expect to owe $1,000 or more for the year after withholding and credits. The IRS expects payments by April 15, June 15, September 15 and January 15. The 'per quarter' figure on this page is the total divided by four, which suits steady income; see the quarterly estimated tax calculator for dates and safe-harbor rules.
What does this calculator leave out?
Other income or W-2 wages, your spouse's income when filing jointly, the 20% qualified business income deduction, itemized deductions, credits, retirement or health insurance deductions, the alternative minimum tax and local taxes. A QBI deduction or itemizing would lower your real bill, so treating this result as a safe upper estimate is reasonable. State tax is a flat percentage of profit that you choose, not a real state computation.
Not tax advice
This is an educational estimate, not tax advice. It assumes no other income, no credits and the standard deduction. Confirm your figures with the IRS instructions or a tax professional. For Canadian self-employment, use the Canadian self-employment tax calculator.