How much should I set aside for 1099 taxes?

Most freelancers should set aside 25–35% of every payment for taxes. The exact amount depends on your income, filing status, state, and deductions. This covers self-employment tax (15.3%), federal income tax, and state income tax. Use a freelancer tax calculator to get your personal set-aside percentage.

When are quarterly taxes due in 2026?

IRS quarterly estimated tax deadlines for 2026 are April 15, June 15, September 15, and January 15 of the following year. If a deadline falls on a weekend or holiday, it moves to the next business day.

What is self-employment tax?

Self-employment tax is a 15.3% tax that covers Social Security (12.4%) and Medicare (2.9%). Employees split this tax with their employer, but freelancers pay both halves. It applies to 92.35% of your net self-employment income, and half of it is deductible from your income taxes.

How do I calculate freelancer taxes?

Start with your gross 1099 income, subtract business expenses to get net income. Calculate self-employment tax (15.3% of 92.35% of net income). Then calculate federal income tax using your tax bracket after the standard deduction, the QBI deduction, and the deduction for half your SE tax. Add your state income tax. Divide the total by four for quarterly estimated payments.

Free Freelancer Tax Calculator 2026 — 1099 & Quarterly Tax Estimator

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Your Numbers

Annual freelance / 1099 income (before expenses)

Filing status State

Refine your estimate (optional)

Business expenses / deductions — home office, equipment, software, mileage

W-2 income — if you also have a day job

IRA contributions — traditional IRA reduces taxable income

Health insurance premiums — self-employed premiums are deductible

Quarterly payments already made this year

Your Tax Estimate

Self-Employment Tax

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This covers your Social Security and Medicare. As a freelancer, you pay the full 15.3%.

What is this?

Because you work for yourself, you pay both the employer and employee share of Social Security (12.4%) and Medicare (2.9%). It applies to 92.35% of your net self-employment income. The silver lining: half of this tax is deductible, which lowers your federal income tax — we've already factored that in.

Federal Income Tax

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Based on 2026 tax brackets after your standard deduction.

What is this?

Federal income tax on your freelance earnings using 2026 brackets. We apply your standard deduction, the deduction for half your self-employment tax, and the 20% Qualified Business Income (QBI) deduction that most freelancers qualify for. If you entered W-2 income, this is the extra tax your freelance income adds on top of it.

State Income Tax

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Estimated using your state's effective rate.

What is this?

An estimate using a typical effective rate for middle-income earners in your state — not the scary top marginal rate you see in headlines. Nine states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming) have no state income tax on freelance earnings.

Total Estimated Tax

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Self-employment + federal + state, for the full year. Includes the 20% QBI deduction most freelancers qualify for.

What is this?

Everything you'll likely owe on your freelance income this year, added together. This is an estimate for planning purposes — your real return may differ once itemized deductions, credits, and your full financial picture are included.

Set Aside Per Payment

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Your most important number: skim this off every payment before you spend a dime.

What is this?

Your total estimated tax divided by your gross freelance income. Set this percentage aside from every single payment — into a separate savings account, ideally — and you'll always have enough when the quarterly deadline arrives.

Each Quarterly Payment

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Pay this four times a year — dates below.

What is this?

The IRS expects freelancers to pay taxes as they earn, not in one lump sum in April. This is your annual estimate divided by four. Pay online at irs.gov/payments in about two minutes. Missing these payments can trigger a small underpayment penalty.

Where your income goes

You keep — Set aside for taxes —

Your Quarterly Payment Schedule

Got your number? The $9 Tax Prep Kit keeps it on track all year — payment tracker, deduction checklist, and a one-page cheat sheet for your accountant.

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The Freelancer Tax Prep Kit

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Quarterly tax tracker — log every payment and what you set aside, all four quarters
Deduction checklist — 25 write-offs freelancers forget, with the golden rules
Set-aside worksheet — this calculator's math, on paper, in nine blanks
Accountant cheat sheet — one page that answers 90% of their questions

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Tools We Recommend

Keeper Tax

Automatically finds every tax deduction in your bank account. Saves freelancers an average of $1,249/year.

Try Keeper Tax

TurboTax Self-Employed

File your 1099 taxes with the tools built for self-employed filers.

Try TurboTax

Relay

A free business bank account built for freelancers. Separate your tax savings automatically.

Try Relay

We only recommend tools we'd tell a friend to use. Some of these links may become affiliate links — if so, we earn a commission at no cost to you.