Freelancers and 1099 contractors don't have tax withheld from their pay, so the IRS expects you to pay during the year in four estimated payments. Pay too little and you can owe an underpayment penalty on top of the tax. This calculator estimates your 2026 federal self-employment tax and income tax, then splits what's left into the four quarterly payments.
Figures checked against IRS Revenue Procedure 2025-32 (2026 brackets) and IRS guidance on estimated taxes. Prices and rules change, so confirm with the official source before relying on them.
How it works
Self-employment tax is 15.3% on 92.35% of your net profit: 12.4% for Social Security up to the 2026 wage base of $184,500 (reduced by any W-2 wages) and 2.9% for Medicare with no cap, plus 0.9% Additional Medicare Tax above $200,000 ($250,000 married filing jointly).
Half of the Social Security and Medicare portion is deductible, which lowers your adjusted gross income. Then the 2026 standard deduction ($16,100 single, $32,200 married filing jointly) or your itemized deductions come off, followed by the 20% qualified business income deduction if you apply it.
Income tax uses the 2026 brackets from IRS Revenue Procedure 2025-32: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your quarterly payment is total federal tax minus any tax already withheld from a job, divided by four.
To avoid a penalty, you generally need to pay at least 90% of this year's tax or 100% of last year's (110% if last year's AGI was over $150,000) through withholding and on-time estimated payments. This estimate leaves out state income tax, credits and other income, so treat it as a starting point.
A worked example
A single freelancer expects $90,000 of net profit in 2026 and has no other job. Self-employment tax is $12,717, of which $6,359 is deductible. After the $16,100 standard deduction and a $13,508 QBI deduction, taxable income is $54,033, and income tax is $6,599. Total federal tax is $19,316, so each quarterly payment is about $4,829, and setting aside 21.5% of every payment covers it.
Questions people ask
Who has to pay quarterly estimated taxes?
Generally anyone who expects to owe $1,000 or more in federal tax for the year after withholding and credits. Most freelancers, 1099 contractors and sole proprietors with steady income fall into this group.
When are 2026 estimated tax payments due?
15 April, 15 June and 15 September 2026, and 15 January 2027. You can pay online through IRS Direct Pay, your IRS account or EFTPS, and label each payment as a 2026 estimated tax payment (Form 1040-ES).
What happens if I don't pay quarterly taxes?
You'll still owe the tax when you file, plus an underpayment penalty that works like interest on the amount you should have paid each quarter. Paying late is better than not paying, since the penalty grows with time.
How much should I set aside from each 1099 payment?
The calculator shows a percentage based on your own numbers. For many freelancers it lands somewhere around 20% to 30% for federal tax alone, and more if your state has an income tax.
Does this include state income tax?
No, it covers federal income tax and self-employment tax only. Most states also expect estimated payments, on their own schedules, so check your state's tax agency and add that amount on top.