Contractor Tax Estimator
How much will I owe in 1099 self-employment taxes?
Estimate 1099 taxes, quarterly payments, and take-home pay using simplified assumptions.
Use This Calculator in Minutes
Estimate self-employment, federal, and state tax from gross income, expenses, filing status, and tax year.
Common calculations
- Set quarterly payment targets
- Model deductions and expense changes
- Compare tax-year scenarios
You get
- Estimated total tax liability
- Quarterly estimated payment
- Approximate annual take-home pay
Quick Result
Estimated quarterly payment
$4,580
Total estimated tax: $18,319
Based on
- • Gross 1099 income: $75,000
- • Deductible expenses: $5,000
- • Filing status: single
- • State tax rate: 5%
Income & Expenses
Deductible items (software, home office, travel, etc.)
Quarterly Tax Payment
$4,580
Due Apr 15, Jun 15, Sep 15, Jan 15
Total Estimated Tax
$18,319
Effective Rate: 24.4%
Where Your Money Goes
Tax Breakdown
Net Take Home
$51,681
Recommended Next Steps
Continue your journey with these related tools
The Freelancer's Guide to Taxes
Key Insights & Concepts
Moving from a W-2 employee to a 1099 independent contractor comes with a major financial shock: no one withholds your taxes. You are now a business owner in the eyes of the IRS, which means you are responsible for paying your own taxes, often quarterly.
The "Self-Employment Tax" Explained
When you are employed, you pay 7.65% of your paycheck to Social Security and Medicare (FICA), and your employer pays the matching 7.65%.
When you are self-employed, you must pay both halves. This 15.3% tax is known as the Self-Employment Tax. It applies to 92.35% of your net earnings.
- Social Security: 12.4% (on earnings up to the wage base limit).
- Medicare: 2.9% (on all earnings).
The Power of Deductions
Key Strategy
You are taxed on your Net Profit, not your Revenue. Every legitimate business expense directly lowers your taxable income. Accurately tracking expenses is the single best way to lower your tax bill.
Estimated Quarterly Taxes
The US has a "pay-as-you-go" tax system. Since you don't have withholding, you must make estimated payments four times a year if you expect to owe more than \$1,000.
Frequently Asked Questions
This tool is for illustrative purposes only and does not constitute professional financial, tax, or legal advice. Calculations are estimates and may not reflect real-world variables or local regulations. Always consult with a qualified professional before making financial decisions.
Methodology and Trust
Formulas
Net profit
Net Profit = Gross Income - Expenses
Taxable income
Taxable Income = Net Profit - Standard Deduction - 0.5 × SE Tax
Quarterly payment
Quarterly = Total Estimated Tax / 4