If you’re paid on a 1099, no tax is withheld, so you pay 15.3% self-employment tax on 92.35% of your profit plus income tax. For 2026, a single contractor with $42,000 of income and typical deductions owes about $3,865 in a no-income-tax state. Enter your numbers for your own federal and state estimate.
Estimated 2026 tax from your gig work: $3,865, about $74 a week.
Show the math
| Gig earningsSchedule C, line 1 | $42,000 |
| Mileage deductionSchedule C, line 9 (72.5¢ and 76¢ a mile) | −$13,745 |
| Other business expensesSchedule C | −$900 |
| Net profitSchedule C, line 31 | $27,355 |
| Self-employment taxSchedule SE (15.3% of 92.35% of profit) | $3,865 |
| Half of self-employment taxSchedule 1 adjustment | −$1,933 |
| Adjusted gross incomeForm 1040 | $25,422 |
| Standard deductionForm 1040 | −$16,100 |
| Tips deductionSchedule 1-A (up to $25,000) | −$11,500 |
| Business income deductionForm 8995 (QBI) | −$0 |
| Taxable incomeForm 1040 | $0 |
| Federal income tax2026 tax brackets | $0 |
| Texas income taxNo state income tax | $0 |
| Total tax | $3,865 |
An estimate for planning, not tax advice. See how we calculate and our verified examples.
What a 1099 means for your taxes
A Form 1099-NEC or 1099-K reports money you earned as an independent contractor. No one withholds tax from it, so you are responsible for two federal taxes: self-employment tax (Social Security and Medicare) and income tax. Most states add their own income tax.
How 1099 tax is calculated
- Start with everything you were paid, whether or not you got a form.
- Subtract business expenses to get your net profit (Schedule C).
- Self-employment tax is 15.3% of 92.35% of that profit. Social Security applies to the first $184,500 of combined wages and self-employment earnings in 2026.
- Income tax applies to your profit minus half of your self-employment tax, the standard deduction ($16,100 single for 2026), any tips deduction and the 20% business income deduction.
The $2,000 1099-NEC threshold for 2026
- Form 1099-NEC: clients and platforms must send one if they paid you $2,000 or more in 2026, up from $600.
- Form 1099-K: sent when payments through a payment platform are over $20,000 and more than 200 transactions.
You owe tax on all your income even if you get no form.
How to lower your 1099 tax with the mileage deduction and more
- Track every business mile and expense.
- Claim the 20% qualified business income deduction (the calculator does this for you).
- If you pay your own health insurance, it may be deductible.
- Retirement savings in a SEP-IRA or solo 401(k) can lower income tax.
More calculators
- Self-Employment Tax Calculator 2026
- Quarterly Tax Calculator 2026
- No Tax on Tips Calculator 2026
- Mileage Deduction Calculator 2026
1099 tax calculator questions
How much tax do I pay on 1099 income?
15.3% self-employment tax on 92.35% of your net profit, plus federal income tax at your bracket after deductions, plus any state income tax. For many contractors under $50,000 of profit, self-employment tax is the larger part.
Do I have to pay tax if I didn’t get a 1099?
Yes. All self-employment income is taxable, with or without a form. You must file if your net earnings from self-employment are $400 or more.
What is the 1099-NEC threshold for 2026?
$2,000. Payers must send a Form 1099-NEC if they paid you $2,000 or more for 2026 work. It was $600 through 2025.
Can I use this calculator if I also have a W-2 job?
Yes. Open More options and enter your wages. The calculator assumes your paycheck withholding covers the tax on your wages and shows the extra tax from your 1099 work.