ReceiptKitFor 1099 contractors
Independent Contractor Tax Calculator
As an independent contractor you get paid without tax taken out, so you pay both halves of Social Security and Medicare yourself. Enter your profit to see that bill. It runs in your browser, and nothing you type is stored or sent.
Contractor or employee: why it matters for tax
An employee has tax withheld and the employer pays half of Social Security and Medicare. A contractor does not, so the whole amount is yours to pay.
The IRS decides this by the relationship, not by the title on a form: who controls how the work is done, and who pays for tools and costs.
- Paid on a Form 1099-NEC: usually a contractor.
- Paid on a W-2: an employee, with tax withheld.
- Not sure which you are? Read the IRS page on independent contractor or employee.
How it's calculated
Self-employment tax = Social Security + Medicare on 92.35% of your profit
- Net earnings = profit × 92.35%.
- Social Security = 12.4% of net earnings, up to a wage base of $184,500.00. Wages from a job use up part of that base first.
- Medicare = 2.9% of net earnings, with no limit.
- Additional Medicare tax = 0.9% on earnings above $200,000.00 (single), $250,000.00 (married filing jointly) or $200,000.00 (head of household), counting wages.
- Under $400.00 of net earnings there is no self-employment tax.
The rates and limits come from the same IRS and SSA figures as our quarterly tax calculator.
Worked example
| Net earnings | $78,497.50 |
| Social Security | $9,733.69 |
| Medicare | $2,276.43 |
| Self-employment tax | $12,010.12 |
| Share of profit | 14.1% |
| Deductible half | $6,005.06 |
Other calculators for independent contractors paid on a Form 1099-NEC
- Self-Employment Tax Calculator: anyone who earns money outside a regular job
- Self-Employed Tax Calculator: people running their own business
- Freelance Tax Calculator: freelancers, designers, writers, developers and consultants
- Gig Worker Tax Calculator: gig workers and people with a side hustle
- Delivery Driver Tax Calculator: DoorDash, Uber Eats, Instacart, Uber and Lyft drivers
- 1099 tax calculator: income tax and self-employment tax together
- Quarterly tax calculator: four payments and due dates
Keep the records with ReceiptKit
ReceiptKit is a receipt scanner with a business or personal switch, tax paid totals and exportable reports. Scan your business receipts as you pay, and your costs are ready when you need to lower your profit. See the tax report and export features.
FAQ
How much tax does an independent contractor pay?
Self-employment tax is 15.3% on 92.35% of net profit, plus federal income tax. This page shows the self-employment part.
Does my client withhold anything from my pay?
Usually not. A client that pays you as a contractor does not withhold income tax or Social Security and Medicare, so you set that money aside yourself.
Can I deduct business expenses as a contractor?
Yes. Ordinary and necessary business costs reduce your profit, and therefore this tax. Keep a receipt for each one.
Does filing jointly change this tax?
Only the Additional Medicare threshold changes with filing status. The main 15.3% calculation is the same for everyone.
Sources
- IRS Self-employment tax (Social Security and Medicare taxes) (checked 2026-10-25)
- IRS Instructions for Schedule SE (2026) (checked 2026-10-25)
- IRS Publication 505 (2026): withholding and estimated tax (checked 2026-10-25)
- IRS Topic no. 560: Additional Medicare tax (checked 2026-10-25)
- SSA 2026 Cost-of-Living Adjustment fact sheet (checked 2026-10-25)
Rates and rules checked on official IRS and SSA pages on 2026-10-25. This calculator gives an estimate of U.S. federal self-employment tax only. It is not tax advice and does not calculate income tax, state tax, credits or special cases such as church employee income or farm income. Ask a tax professional before you file or make a payment.
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