Federal and State Self-Employment Tax in 2026
Search Console shows people landing here after typing "self employment tax calculator federal and state" and "1099 tax calculator federal and state" — they want one number, not three separate tools. Your 1099 income is taxed in three layers: federal income tax, 15.3% self-employment tax, and whatever your state (and sometimes city) charges. Run the combined figure in the [self-employed tax estimator](https://gigmytax.com/calculators/self-employed-tax-estimator), then use this guide to understand what each layer is doing.
The three layers on 1099 income
Federal income tax applies to your taxable income after the standard deduction. Self-employment tax (12.4% Social Security + 2.9% Medicare = 15.3%) applies to 92.35% of net profit, before the standard deduction — which is why a low-income freelancer can owe zero federal income tax and still owe thousands. State tax then applies to your state taxable income, using its own brackets, deductions and credits.
Order of operations
Net profit from Schedule C → SE tax on 92.35% of it → half of SE tax deducted above the line → standard deduction → federal income tax → state return, which usually starts from federal AGI.
Why one combined number matters
Setting aside only for SE tax leaves you short in April; setting aside only for income tax leaves you short by 15.3%. A combined federal + state estimate is the only figure worth budgeting from.
What changes by state
The federal layer is identical everywhere. The state layer is what moves your total set-aside percentage by 5 to 10 points.
No state income tax
Texas and Florida charge no personal income tax, so a 1099 worker there budgets federal-only — usually 22% to 26% of net profit. See the [Texas](https://gigmytax.com/calculators/texas-self-employed-tax) and [Florida](https://gigmytax.com/calculators/florida-self-employed-tax) calculators.
Flat-rate states
Illinois (4.95%) and Arizona (2.5%) are simple to model: multiply state taxable income by one rate. Try the [Illinois](https://gigmytax.com/calculators/illinois-self-employed-tax) and [Arizona](https://gigmytax.com/calculators/arizona-self-employed-tax) calculators.
Progressive states
California runs from 1% to 13.3%, New York adds NYC resident tax on top. Use the [California](https://gigmytax.com/calculators/california-self-employed-tax) and [New York](https://gigmytax.com/calculators/new-york-self-employed-tax) calculators.
City layers
Ohio municipalities tax net profit at 1.5% to 3% and NYC adds resident tax plus possible UBT. The [local tax FAQ](https://gigmytax.com/local-tax-faq) covers who files where.
Worked example: $60,000 net profit, three states
Same profit, same federal math, three very different totals. Net profit $60,000. SE tax on 92.35% ($55,410) is about $8,478; half ($4,239) is deductible. Federal taxable income after the $16,100 standard deduction is roughly $39,661, giving about $4,530 of federal income tax. Federal subtotal: about $13,008, or 21.7% of profit.
Texas
No state tax. Total stays near $13,008 — a 22% set-aside covers it.
Illinois
State taxable income around $53,000 at 4.95% adds roughly $2,620. Total about $15,628, or 26% of profit.
California
State tax on the same base lands near $2,000 after the state standard deduction, and the bracket climbs on higher profit. Total about $15,000, or 25% — but budget 27% to 30% above $100,000.
Paying both layers quarterly
Federal and state estimates are separate payments on the same four dates: April 15, June 15, September 15 and January 15. Federal goes on Form 1040-ES through IRS Direct Pay; states use their own vouchers (CA 540-ES, NY IT-2105, IL-1040-ES, AZ 140ES, OH IT 1040ES). Paying federal only is the most common reason a freelancer gets a state penalty notice.
Safe harbour
Pay 90% of this year's total tax or 100% of last year's (110% if prior-year AGI exceeded $150,000) to avoid federal underpayment penalties. Most states mirror this rule with their own thresholds.
One transfer, three buckets
Move your set-aside percentage out of every payout into a separate account, then split it across federal, state and any city estimate at quarter end.
Deductions cut all three layers at once
Because state returns start from federal AGI and SE tax is calculated on net profit, one legitimate deduction reduces federal income tax, SE tax and state tax simultaneously. At $0.70 per business mile in 2026, 12,000 miles is an $8,400 deduction — worth roughly $2,700 in combined tax for a mid-bracket freelancer in a 5% state. Log miles in the [mileage deduction calculator](https://gigmytax.com/calculators/mileage-deduction) and stack the rest in the [tax deduction calculator](https://gigmytax.com/calculators/tax-deduction).
Frequently asked questions
+Is there one calculator for federal and state self-employment tax?
Yes — the self-employed tax estimator computes federal income tax, 15.3% self-employment tax and your state tax in one pass, so you get a single set-aside percentage.
+Do I pay self-employment tax to my state too?
No. The 15.3% self-employment tax is federal only (Social Security and Medicare). States charge income tax on the same profit, but they do not levy a separate SE tax.
+How much should I set aside for federal and state combined?
Roughly 22% to 26% of net profit in a no-income-tax state like Texas or Florida, 25% to 30% in a state with income tax, and 28% to 32% if a city tax applies as well.
+Which comes first, federal or state?
Calculate federal first. Most state returns start from federal adjusted gross income, so your federal numbers feed the state return.
+Can I make one combined quarterly payment?
No. Federal estimates go to the IRS on Form 1040-ES and each state has its own voucher and portal. Same dates, separate payments.
+Does a state with no income tax mean no filing at all?
Not always. Texas and Florida have no personal income tax, but local business licences, sales tax permits or tourist taxes can still apply to your gig work.
About the author
Javed Niamat · Founder & Editor, GigTax
Javed Niamat founded GigTax to make self-employment tax math understandable for rideshare drivers, delivery couriers, creators and freelancers. He builds and maintains every calculator on this site and writes the guides that explain the numbers behind them.
Related calculators
- Self-Employed Tax EstimatorEstimate federal, SE, and state tax for your full 1099 year.
- Quarterly Tax CalculatorEstimate your four IRS quarterly payments and avoid underpayment penalties.
- Estimated Tax Payment CalculatorCompute each Form 1040-ES estimated payment.
- How Much Should I Save for Taxes?Set-aside % of every 1099 payout for federal, SE, and state tax.
Related guides
- Self-Employment Tax Explained: 2026 Rates, Rules, and MathSelf-employment tax explained in plain English: 15.3% breakdown, the 92.35% adjustment, the ½ SE deduction, thresholds, and how to pay it in 2026.
- Quarterly Estimated Taxes for Gig Workers: Dates, Forms, How to PayWhen and how gig workers pay quarterly estimated taxes in 2026 — deadlines, safe harbor rules, IRS Direct Pay, and how to size each payment.
- The Complete 1099 Deductions Checklist for 2026Printable 1099 tax deductions checklist for 2026. Every Schedule C write-off freelancers and contractors miss — mileage, home office, phone, health, retirement.
- Self-Employed Tax Estimator: The 2026 Federal, SE & State GuideHow to accurately estimate 2026 self-employed taxes — federal income tax, 15.3% SE tax, and state tax — with real formulas and a free calculator.