How much should you set aside for taxes as a 1099 contractor (2026)?
The honest answer: it depends on your income and filing status, but for most solo earners the combined federal bite lands between 20% and 30% of net profit. The table below is computed with this site's engine for a single filer taking the standard deduction, no other income — use the calculator for your exact numbers.
| Net profit | SE tax | Income tax | Total federal | Set aside | Per quarter |
|---|---|---|---|---|---|
| $30,000 | $4,239 | $1,178 | $5,417 | 18.1% | $1,354 |
| $50,000 | $7,065 | $3,396 | $10,461 | 20.9% | $2,615 |
| $75,000 | $10,597 | $6,504 | $17,101 | 22.8% | $4,275 |
| $100,000 | $14,130 | $11,616 | $25,745 | 25.8% | $6,436 |
| $150,000 | $21,194 | $22,191 | $43,385 | 28.9% | $10,846 |
| $200,000 | $28,234 | $33,346 | $61,580 | 30.8% | $15,395 |
Federal only; single filer, standard deduction, 2026 figures. State income tax is extra. A safe habit: move your set-aside percentage into a separate savings account every time you get paid.
A simple rule that works
If you don't want to run the numbers every time, bank 30% of every payment in a separate account. For most solo earners that slightly over-saves — and being a little ahead on taxes beats scrambling in April. Then true it up each quarter with the calculator and pay by the deadline.
Keep clean books, owe less
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Common questions
How much should I set aside for taxes as a 1099 contractor in 2026?
A common rule of thumb is 25–30% of your net self-employment profit, but the right number depends on your income and filing status. This calculator gives you an exact 2026 federal figure — for a single filer netting $80,000 it works out to about 24% of profit once self-employment tax and income tax are combined.
What is self-employment tax and why do I owe it?
Self-employment tax is the 15.3% that covers Social Security (12.4%) and Medicare (2.9%). As a W-2 employee your employer pays half; when you're self-employed you pay both halves — but you get to deduct one-half of it from your income. It applies to 92.35% of your net profit.
When are quarterly estimated taxes due?
For the 2026 tax year the federal estimated-tax deadlines are April 15 2026, June 15 2026, September 15 2026, and January 15 2027. Miss them and the IRS can charge an underpayment penalty even if you pay in full at filing.
Does this include state taxes?
No. This tool covers federal self-employment and income tax only. State and local income taxes vary widely and are not included — add your state's rate separately.
Is this tax advice?
No. It's an educational estimate built on published IRS and SSA figures. Confirm with a tax professional before you file or pay.