Calculator · Free
1099 Estimated Tax Calculator
Figure quarterly estimated tax for 1099 contractors — federal income tax, self-employment tax, and what to set aside from each check.
Set aside from each 1099 check
20%of gross income
$27,832 total estimated tax for 2026 after W-2 withholding. $9,277 per remaining quarterly payment.
- Net Schedule C profit$145,000 gross minus $38,000 expenses
- $107,000
- Self-employment tax15.3% on 92.35% of net profit (Schedule SE)
- $15,119
- Federal income tax22% marginal bracket
- $9,380
- State income tax
- $3,334
- Total tax liability
- $27,832
- Less W-2 withholding
- −$0
- Estimated tax due
- $27,832
- Monthly set-asideTransfer this much to a tax account each month
- $2,319
| Quarter | Due date | Amount | Status |
|---|---|---|---|
| Q1 | Apr 15 | $0 | Paid |
| Q2 | Jun 15 | $9,277 | Due now |
| Q3 | Sep 15 | $9,277 | Upcoming |
| Q4 | Jan 15 (next year) | $9,277 | Upcoming |
| Annual total | $27,832 |
| Component | Amount | Notes |
|---|---|---|
| Adjusted gross income (AGI) | $99,441 | After SE tax deduction |
| Standard deduction | $16,100 | Single |
| QBI deduction | −$16,668 | 20% of qualified business income |
| Taxable income | $66,673 | |
| Federal income tax | $9,380 | 19.2% effective on gross |
| Self-employment tax | $15,119 | Social Security + Medicare |
| SE tax deduction (AGI) | −$7,559 | Half of SE tax |
| State income tax | $3,334 | 5% flat rate |
| Total liability | $27,832 |
Safe harbor shortfall: $22,000
Safe harbor requires $22,000 in total payments (100% of prior-year tax). You are $22,000 short — catch up on your next payment to avoid Form 2210 penalties.
Transfer tax money the day you get paid
At 20% of gross, a $5,000 deposit means moving $1,008 to a separate tax account immediately. Waiting until quarter-end is how contractors spend their tax money on a slow month and get hit with penalties in April.
What this assumes
- Uses 2026 federal tax brackets, standard deduction, and Schedule SE self-employment tax rates.
- State tax is a flat rate you enter — actual state rules vary by jurisdiction.
- QBI deduction is simplified at 20% of net business income; complex limitations are not modeled.
Important
This is an estimate, not tax advice. Tax law changes, AMT, credits, and state rules can change your actual liability. Consult a CPA or enrolled agent before filing.
Understanding the result
1099 contractors pay tax quarterly, not annually
When nobody withholds from your checks, the IRS expects estimated payments four times a year — April 15, June 15, September 15, and January 15. Miss a payment and you owe the tax plus a penalty, even if you get a refund in April.
Self-employment tax is the surprise
On top of income tax, you pay 15.3% self-employment tax on 92.35% of net profit — both the employer and employee share of Social Security and Medicare. A plumber netting $80,000 owes roughly $11,300 in SE tax before a single dollar of income tax.
Set aside from every deposit
The simplest discipline: transfer 25 to 35% of every 1099 payment to a separate tax account the day it lands. The exact percentage depends on your bracket, state, and deductions — this calculator gives you the number for your situation.
Safe harbor protects you from penalties
Pay at least 100% of last year's total tax (110% if prior AGI exceeded $150,000) through withholding plus estimated payments, and the IRS will not penalize you even if you owe more in April. Most contractors use prior-year safe harbor as their quarterly target.
Common questions
How much should a 1099 contractor set aside for taxes?
Most trade contractors set aside 25 to 35% of gross 1099 income. A sole proprietor netting $100,000 typically owes $15,000 to $22,000 in combined federal income and self-employment tax, plus state tax. Set aside from every check, not once a quarter.
When are quarterly estimated tax payments due?
April 15 (Q1), June 15 (Q2), September 15 (Q3), and January 15 of the following year (Q4). If a due date falls on a weekend or holiday, the next business day applies. Pay at irs.gov/payments or by mail with Form 1040-ES.
What is self-employment tax for contractors?
Self-employment tax is 15.3% on 92.35% of net Schedule C profit: 12.4% Social Security up to the wage base ($184,500 in 2026) plus 2.9% Medicare on all earnings. It replaces the FICA tax W-2 employees split with their employer.
Do I need to pay estimated taxes if I also have a W-2 job?
Yes, if your W-2 withholding does not cover tax on your 1099 income. Increase W-4 withholding or make estimated payments on the side income. Combined W-2 wages reduce the Social Security portion of SE tax on overlapping earnings.
What expenses can a contractor deduct?
Common Schedule C deductions: vehicle expenses (mileage or actual), tools and equipment, insurance, license fees, subcontractor payments, materials, phone, home office, continuing education, and bank fees. Keep receipts — the IRS matches 1099 income to bank deposits.
What is the safe harbor for estimated taxes?
Pay at least 90% of current-year tax or 100% of prior-year tax (110% if prior AGI exceeded $150,000) through withholding plus estimated payments to avoid underpayment penalties. Most contractors target the prior-year safe harbor because it is a known number.
How do I calculate estimated tax for an LLC?
Single-member LLCs file Schedule C like a sole proprietor — same estimated tax rules. Multi-member LLCs and S-corps have different rules (K-1 income, quarterly payroll for owners). This calculator is for sole proprietors and single-member LLCs filing Schedule C.
Can I deduct my truck for taxes?
Yes — either the IRS standard mileage rate ($0.70/mile in 2025) or actual expenses (payment, fuel, insurance, maintenance, depreciation). You must track business vs. personal miles. Commuting from home to a regular job site is not deductible.
What happens if I miss a quarterly estimated tax payment?
The IRS charges an underpayment penalty calculated on Form 2210 — roughly 8% annualized on the shortfall for the period. You still owe the tax in April. Catch up on the next payment; the penalty is proportional to how long you were short.
Should I make estimated payments monthly instead of quarterly?
Yes — many contractors pay monthly or even per-deposit because it is easier to budget. The IRS only requires the cumulative amount by each quarterly due date. Paying more frequently reduces the risk of spending tax money on a slow month.
You may also need
The next decision usually follows directly from this one.
- CalculatorShop Rate CalculatorDetermine the hourly rate you must charge to cover overhead and hit your income target.
- CalculatorBreak-Even CalculatorFind the revenue and billable hours required to cover fixed and variable costs.
- CalculatorEffective Hourly Rate CalculatorSee what you actually earn per hour worked — field time, admin, sales, and drive time included.
- CalculatorCash Runway CalculatorSee how many months of cash you have at current burn — and what revenue change keeps you solvent.
- CalculatorJob Pricing CalculatorBuild a defensible price from labor, materials, overhead and your target profit margin.
Related trades
- ElectricianInstall and maintain the power, lighting and control systems in homes, businesses and industrial plants.
- PlumberInstall and repair the water supply, drainage, gas and fixture systems that keep buildings habitable.
- HVAC TechnicianInstall, service and troubleshoot the heating, cooling, ventilation and refrigeration systems buildings depend on.
- CarpenterFrame, finish and build the structures and interiors of residential and commercial buildings.
- RooferInstall and repair the roof systems that keep water out of residential and commercial buildings.
- WelderJoin metal for structures, pipelines, pressure vessels and manufactured goods to a qualified procedure.