Your 1099 Income
Gross income before any deductions
$
$
$
Your 1099 Tax Estimate
2026 IRS brackets · SS base $184,500
Total Estimated Tax (SE + Federal + State)
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Effective rate: —
Quarterly Payment
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Pay 4× per year
Monthly Set-Aside
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Recommended savings
Tax Breakdown
Gross 1099 Income
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Business Expenses
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Net SE Income (Sched. C)
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Self-Employment Tax (15.3%)
On 92.35% of net SE income
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SE Tax Deduction (50%)
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Standard Deduction
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Federal Taxable Income
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Federal Income Tax
Marginal bracket: —
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State Income Tax
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⚠️ 2026 1099-NEC reporting threshold is $2,000 (raised from $600 by OBBBA). You still owe taxes on all income regardless of whether you receive a 1099 form. Not tax advice.
What's New for 2026
Key 1099 changes this year
$2K
New 1099-NEC threshold
The OBBBA raised the 1099-NEC reporting threshold from $600 to $2,000 for 2026. Businesses no longer issue a 1099-NEC unless they paid you $2,000+. But you still owe taxes on all self-employment income regardless of whether you receive a form.
$184,500
Higher SS wage base
The 2026 Social Security wage base increased to $184,500 (up from $176,100 in 2025). More income is subject to the 12.4% SS portion. If your combined W-2 + 1099 income exceeds $184,500, you stop owing SS tax on the excess — our calculator models this correctly.
15.3%
SE tax rate unchanged
The SE rate is unchanged at 15.3% — 12.4% SS (up to $184,500) plus 2.9% Medicare (no cap). Applied to 92.35% of net earnings. You deduct 50% of SE tax as an above-the-line deduction before calculating income tax, reducing your AGI.
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FAQ
1099 tax questions
What is the tax rate on 1099 income in 2026?+
1099 income has two tax layers: self-employment tax (15.3% on 92.35% of net income ≈ 14.1% effective) plus federal income tax using 2026 progressive brackets (10%–37%). Most 1099 workers pay a combined effective rate of 22–32% depending on income, state, and deductions.
How is 1099 income taxed differently than W-2?+
W-2 employees split FICA (15.3%) with their employer — each pays 7.65%. As a 1099 worker you pay both halves (15.3%) yourself, but deduct 50% as an above-the-line deduction. Net result: 1099 workers typically pay 5–8% more in total taxes than equivalent W-2 employees at the same gross income, offset by the ability to deduct business expenses.
I have both W-2 and 1099 income — how does that affect my taxes?+
Both income types combine for federal income tax, potentially pushing you into a higher bracket. The SS portion of SE tax is reduced if W-2 wages already reached the $184,500 wage base — you won't owe 12.4% SS tax on SE income above that combined threshold. Enter both income types above for an accurate combined estimate.
Do I owe taxes on 1099 income under $2,000?+
Yes. The $2,000 threshold only determines if a business must issue a 1099-NEC form — it has no effect on your tax obligation. SE tax is owed on all net SE income above $400. Federal income tax applies to all income. Always report every dollar of income you receive regardless of whether a 1099 was issued.