Contractor Tax Calculator

See what a 1099 contract really pays after federal income tax, the 15.3% self-employment tax, and state tax for 2026.

Contract rates look generous until the first tax bill lands. Enter your billings, business expenses, home office, health premiums, and retirement contributions to see the true net — and how much each deduction gives back.

1099 income & deductions

For freelancers, consultants, and independent contractors paid on 1099-NEC. Covers home office, mileage, equipment, and self-employed health insurance.

Set aside from every invoice
21.0%
Quarterly payment
$3,942
Estimated owed
$16,582

Breakdown

1099 gross income$75,000
Mileage deduction (3,000 mi)− $2,100
Home office deduction− $1,500
Other business expenses− $4,900
Net self-employment income$66,500
Self-employment tax (15.3%)$9,396
Federal income tax$3,940
CA state tax (est.)$3,246
Total tax liability$16,582
Effective tax rate22.1%

Independent contractors must pay quarterly estimated tax to the IRS to avoid penalties.

Related calculators

Related blog posts