Professional services
1099 Tax Calculator
Estimates what someone paid on a 1099 owes, where self-employment tax is the part that surprises people.
Result
Not tax advice. Entity choice, reasonable compensation, pass-through deductions and state treatment interact in ways that depend entirely on your circumstances, and the rules change annually. This estimates a set-aside; the decision belongs with an accountant. The pass-through deduction has income thresholds and excludes several service businesses above them, so claiming the full 20% is frequently wrong. This also applies a flat marginal rate rather than progressive brackets, which overstates the tax.
Get a Free Business AuditHow the calculation works
Net earnings, meaning income less business expenses, carry two separate federal taxes. Self-employment tax covers Social Security and Medicare at a combined rate applied to a statutory share of net earnings, with the Social Security portion stopping at an annual wage base and the Medicare portion continuing without limit. Income tax is then calculated on taxable income after the standard or itemised deduction, with half of the self-employment tax deductible. The result is an estimate for planning.
What moves the number
- Net earnings after legitimate business expenses, not gross receipts.
- Whether income is below or above the Social Security wage base.
- Other income, including a spouse's wages, which affects the bracket.
- State and local income tax, which this does not attempt to model.
Where this one goes wrong
The shock for someone new to 1099 income is that there was no withholding and the self-employment tax is on top of income tax, so the total due is far more than the income tax alone suggests. The second is timing: estimated tax is paid quarterly rather than at filing, and underpaying through the year produces a penalty even when the return is eventually correct. Set money aside from each payment rather than at year end. Rates, wage bases and deduction amounts change annually, so confirm the current figures and use a tax professional for anything beyond planning.
Before you quote
- Deduct legitimate business expenses before applying any rate.
- Confirm the current year's wage base and deduction amounts.
- Plan for quarterly estimated payments, not a single bill at filing.
Where the rules come from
Questions
About this calculator
Why do I owe so much more on 1099 income than on a W-2?
Because self-employment tax covers both the employee and employer shares of Social Security and Medicare, which an employer would otherwise have paid half of, and because nothing was withheld. The income tax is similar; the payroll tax side is roughly double.
Do I have to pay quarterly?
Generally yes, if you expect to owe more than a small threshold. Paying only at filing can produce an underpayment penalty even when the return is correct. The current thresholds and safe harbour rules are on the IRS site and worth confirming for your situation.
Is this an accurate figure for my return?
No. It is a planning estimate. Rates, wage bases and deduction amounts change annually, state and local tax is not modelled, and deductions, credits and filing status all change the answer. Use a tax professional for a filing position.
The formula
net profit, then self-employment tax, then income tax on profit less half the SE tax, the standard deduction and any pass-through deduction
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How to use this calculator
- Business revenue ($). Enter your own figure; the page starts at $95,000.
- Deductible business expenses ($). Enter your own figure; the page starts at $14,000.
- Self-employment tax rate (%). Enter your own figure; the page starts at 15.3%.
- Federal marginal rate (%). Enter your own figure; the page starts at 22%.
- State rate (%). Enter your own figure; the page starts at 5%.
- Standard or itemised deduction ($). Enter your own figure; the page starts at $14,600.
The result updates as you type, so you can try a figure, see what it does to estimated total tax, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Business revenue | $95,000 |
| Deductible business expenses | $14,000 |
| Self-employment tax rate | 15.3% |
| Federal marginal rate | 22% |
| State rate | 5% |
| Standard or itemised deduction | $14,600 |
| Pass-through deduction claimed | 20% |
What comes out
| Result | Value |
|---|---|
| Estimated total tax main result | $23,454 |
| Net business profit | $81,000 |
| Self-employment tax | $11,445 |
| Income tax | $12,009 |
| Left after tax | $57,546 |
| Effective rate on profit | 28.96% |
On $81,000 of net profit the tax is about $23,454, made up of $11,445 self-employment tax and $12,009 income tax. That leaves $57,546, an effective rate of 28.96%.
How sensitive the answer is
Holding everything else steady and changing only business revenue, this is what happens to estimated total tax. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Business revenue ($) | Estimated total tax |
|---|---|
| $47,500 | $7,388 |
| $71,250 | $15,421 |
| $95,000 example above | $23,454 |
| $142,500 | $39,519 |
| $190,000 | $55,585 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Business revenue ($)
- A money amount, starting at $95,000.
- Deductible business expenses ($)
- A money amount, starting at $14,000.
- Self-employment tax rate (%)
- A percentage, between 0 and 20, starting at 15.3%.
- Federal marginal rate (%)
- A percentage, between 0 and 50, starting at 22%.
- State rate (%)
- A percentage, between 0 and 15, starting at 5%.
- Standard or itemised deduction ($)
- A money amount, starting at $14,600.
- Pass-through deduction claimed (%)
- Where it applies. Eligibility is restricted.
What the results tell you
| Result | What it is |
|---|---|
| Estimated total tax | The headline result. A money figure. |
| Net business profit | A money figure. |
| Self-employment tax | A money figure. |
| Income tax | A money figure. |
| Left after tax | A money figure. |
| Effective rate on profit | A percentage. |
Keep going
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