1099 Tax Set-Aside Calculator
On a 1099 contract no one withholds taxes for you. Estimate your 2026 self-employment tax and income tax, then get a simple percentage to skim off every payment for quarterly estimated taxes.
Gross 1099 income minus business deductions (Schedule C net), before taxes.
An estimate — your real effective federal rate depends on brackets, deductions, and other income. Default 24% is a rough placeholder.
Federal only. Ignores state income tax, the QBI/§199A deduction, credits, and any wages from a separate W-2 job that may already have used part of the Social Security wage base. Treat the set-aside % as a floor and round up.
What this estimates
As a 1099 contractor you owe two federal taxes that a W-2 job would have handled for you:
- Self-employment tax — computed precisely here: net profit × 92.35%, then 12.4% Social Security up to the 2026 wage base of $184,500, plus 2.9% Medicare on everything, plus 0.9% Additional Medicare above $200,000 (single) / $250,000 (MFJ).
- Income tax — estimated as your effective rate applied to profit less the deductible half of SE tax. The rate field is an editable estimate; your real effective rate depends on brackets, deductions, and household income.
The set-aside percentage is total estimated federal tax divided by your gross 1099 profit — park that share of every check so you're not scrambling each quarter. See the quarterly estimated taxes guide for due dates and the safe-harbor rule.