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Free 1099 Tax Calculator 2025

Calculate self-employment taxes with live state tax rates, track business deductions, and plan quarterly payments. Trusted by 50,000+ freelancers and independent contractors.

No signup required Instant results 2025 IRS rates All 50 states

Calculate Your 1099 Taxes

State tax rate: 0%

Business Expense Deductions

Enter your business expenses to reduce taxable income.

Tax Calculation Results

Gross Income: $0
Total Deductions: -$0
Net Taxable Income: $0
SE Tax Base (92.35%): $0
Self-Employment Tax (15.3%): $0
Federal Income Tax (est.): $0
State Income Tax (): $0
Total Estimated Tax 2025: $0
Effective Tax Rate: 0.0%

✓ No signup required • ✓ Privacy protected • ✓ Calculations run in your browser

Quarterly Estimated Tax Calendar 2025

The IRS requires quarterly payments to avoid penalties. Pay on time using these deadlines:

Q1 Payment Due
April 15, 2025
$0
Q2 Payment Due
June 16, 2025
$0
Q3 Payment Due
September 15, 2025
$0
Q4 Payment Due
January 15, 2026
$0

How 1099 Self-Employment Taxes Work in 2025

If you work as a freelancer, independent contractor, gig worker, or small business owner receiving 1099-MISC or 1099-NEC forms, understanding your tax obligations is critical. Unlike W-2 employees who have taxes automatically withheld from paychecks, 1099 workers are responsible for calculating and paying their own taxes throughout the year.

What is Self-Employment Tax?

Self-employment tax is the equivalent of FICA taxes (Social Security and Medicare) that W-2 employees pay. The key difference: 1099 contractors pay both the employer and employee portions, totaling 15.3%:

  • 12.4% for Social Security (on earnings up to $168,600 in 2025)
  • 2.9% for Medicare (no income limit)
  • 0.9% Additional Medicare Tax on income over $200,000 (single filers)

Importantly, self-employment tax applies to 92.35% of your net earnings, not your gross income. This accounts for the employer-equivalent portion that would normally be tax-deductible for a business.

Federal Income Tax for 1099 Contractors

On top of self-employment tax, you also owe federal income tax based on your tax bracket. For 2025, most self-employed individuals fall into the 12%, 22%, or 24% brackets. Our calculator uses a simplified 12% estimate, but your actual rate depends on your total taxable income, filing status, and deductions.

State Income Tax Considerations

Our calculator includes state-specific income tax rates for all 50 states. Nine states have no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming), while others range from 2.9% (North Dakota) to 13.3% (California for high earners). Always select your state of residence for accurate estimates.

Business Deductions That Lower Your Tax Bill

Tracking business expenses is one of the most powerful ways to reduce your 1099 tax liability. Common deductible expenses include:

  • Home office: Based on square footage (simplified method: $5/sq ft up to 300 sq ft)
  • Vehicle expenses: Standard mileage rate is 67 cents/mile in 2025
  • Health insurance premiums: Fully deductible if self-employed
  • Retirement contributions: SEP-IRA or Solo 401(k) reduce taxable income
  • Software and subscriptions: Business tools and services
  • Professional development: Courses, conferences, and training

Why Quarterly Tax Payments Matter

The IRS requires quarterly estimated tax payments if you expect to owe $1,000 or more annually. Missing payments results in underpayment penalties (0.5% per month, or 6% annually). Our calculator divides your annual tax liability into four equal payments aligned with IRS deadlines.

Disclaimer: This calculator provides estimates for planning purposes and does not constitute tax advice. Actual tax liability may vary. Consult a licensed CPA or tax professional for personalized guidance.

Frequently Asked Questions

Do I have to pay quarterly taxes as a 1099 worker?

Yes. If you expect to owe $1,000 or more in total taxes for the year, the IRS requires quarterly estimated tax payments. The deadlines are April 15, June 16, September 15, and January 15. Our calculator helps you divide your annual tax liability into four equal quarterly payments.

What expenses are deductible for freelancers?

Common deductible expenses include home office space (based on square footage), business mileage (67 cents per mile in 2025), internet and phone service, computer equipment, software subscriptions, marketing costs, professional development courses, and health insurance premiums. Keep all receipts and track expenses monthly.

What happens if I miss a quarterly payment?

Missing quarterly payments results in IRS underpayment penalties calculated at 0.5% per month (6% annually) on the unpaid amount. Interest also accrues daily until paid. To avoid penalties, pay at least 90% of your current year tax liability or 100% of last year's total tax.

How much should I set aside for 1099 taxes?

Plan to save 25-30% of your gross income for taxes. This covers self-employment tax (15.3%), federal income tax (typically 12-22% bracket), and state income tax. Higher earners in states like California should save 35-40%. Use our calculator for a precise estimate.
This calculator provides estimates only and does not constitute legal, financial, or tax advice. Consult a licensed CPA or tax professional for personalized guidance.