Freelance / 1099 Tax Calculator
Estimate self-employment taxes, quarterly payments, and your effective rate (2025)
0% for TX, FL, NV, WA, SD, WY, AK • ~9-13% for CA, NJ, NY
Understanding 1099 / Freelance Taxes
Freelancers are responsible for both halves of FICA taxes plus income tax. Planning ahead with quarterly payments prevents surprises at tax time.
Guide
How it works
As a freelancer or 1099 contractor, you pay self-employment (SE) tax on top of regular income tax. SE tax covers both the employee and employer portions of Social Security (12.4%) and Medicare (2.9%), totaling 15.3% on 92.35% of net earnings.
The good news: you can deduct half of SE tax from your income, reducing your AGI. Business expenses, retirement contributions (SEP-IRA up to 25% of net earnings, or Solo 401k), and the standard deduction all help lower your taxable income.
Based on 2025 tax brackets and limits. This is an estimate — consult a CPA for your specific situation.
What is self-employment tax?expand_more
SE tax is 15.3% of your net self-employment income (after business expenses). It covers Social Security (12.4%) and Medicare (2.9%). Employees only pay half (7.65%) because employers pay the other half — freelancers pay both.
How do I pay quarterly taxes?expand_more
Use IRS Form 1040-ES to estimate and pay quarterly. Due dates are typically April 15, June 15, September 15, and January 15. Underpayment penalties apply if you owe more than $1,000 and don't pay enough quarterly.
What business expenses can I deduct?expand_more
Common deductions include home office, equipment, software, phone/internet (business portion), professional development, health insurance premiums, and business travel. Keep receipts and documentation for everything.
Should I set up an S-Corp to reduce SE tax?expand_more
At higher income levels (typically $50,000+ net profit), electing S-Corp status lets you pay yourself a reasonable salary and take remaining profit as distributions (not subject to SE tax). Consult a CPA to assess whether the savings justify the added complexity and costs.
Next steps