1099 · Gig Workers · Contractors · 2026
1099 Tax Calculator 2026
1099 workers pay 15.3% self-employment tax on net profit plus federal and state income tax. On $40,000 net income, total tax is roughly $7,933 — about $1,983 per quarter. Pick your platform below for a precise estimate.
Last updated: May 2026 · By the GigWiseTax Team
Free tax estimator built for gig workers, freelancers, and independent contractors. Calculate self-employment tax, federal income tax, deductions, and quarterly payments. All 50 states covered. No signup, no paywall.
✅ KEY TAKEAWAYS
- 1099 workers pay 15.3% SE tax on top of federal income tax — no employer to split it with
- On $40,000 net income, total federal tax is roughly $7,933 — set aside 25-30% each month
- IRS mileage deduction is 72.5¢–76¢/mile in 2026 — the biggest write-off for delivery and rideshare drivers
- Quarterly payments due: Apr 15 · Jun 15 · Sep 15 · Jan 15 — required if you owe $1,000+
- 1099-K threshold in 2026 is $20,000 across more than 200 transactions — all income is taxable regardless of which form you receive
W-2 Employee
FICA burden7.65% (employer pays 7.65%)
Tax withheldAutomatic each paycheck
Quarterly filingNot required
Mileage deductionNot available (post-2017)
QBI deductionNot available
1099 Contractor
SE tax burden15.3% (you pay both sides)
Tax withheldNothing — you pay quarterly
Quarterly filingRequired if owe $1,000+
Mileage deduction72.5¢ (Jan–Jun) / 76¢ (Jul–Dec) per mile (2026)
QBI deductionUp to 20% of net income
Top Deductions for 1099 Workers in 2026
✓Mileage — 72.5¢/mile Jan–Jun, 76¢/mile Jul–Dec (IRS 2026 rates)
✓QBI deduction — up to 20% of net income
✓50% of SE tax — automatic above-the-line
✓Phone plan — business-use percentage
✓Home office — dedicated space only
✓Health insurance premiums (self-employed)
✓Platform fees (Uber service fee, Etsy fees, etc.)
✓Equipment and supplies for your gig
This 1099 tax calculator works for DoorDash, Uber, Lyft, Etsy, OnlyFans, Airbnb, Amazon Flex, Instacart, Grubhub and all other self-employed income. Enter your net earnings to see your self-employment tax, federal income tax, and state tax instantly.
1099 Tax FAQs
What taxes do 1099 workers pay in 2026?
SE tax (15.3%) + federal income tax (10-37%) + state tax. After mileage, QBI, and the 50% SE deduction, effective rates are typically 18-28% for most gig workers.
What is the difference between a 1099-NEC and 1099-K?
1099-NEC reports nonemployee compensation (DoorDash, Uber, Lyft payments). 1099-K reports payment network transactions — threshold is $20,000 across more than 200 transactions. All 1099 income is taxable regardless of which form you receive.
How much should I set aside for 1099 taxes?
25-30% of net income covers SE tax (15.3%) plus federal income tax for most gig workers. Use a platform calculator above for a precise number based on your actual income and state.
Do 1099 workers pay quarterly taxes?
Yes, if you expect to owe $1,000 or more. Due dates: April 15 · June 15 · September 15 · January 15. Underpayment triggers an IRS penalty.
What deductions can 1099 gig workers claim?
Mileage (72.5¢/mile Jan–Jun, 76¢ Jul–Dec), phone plan, home office, equipment, platform fees, QBI deduction (up to 20% of net), and health insurance premiums for self-employed workers.
Pick your platform for a precise calculation
Platform-specific deductions, mileage rules, and 1099 handling — all included.
Calculate DoorDash Taxes →