Self-Employed Set-Aside Calculator

How much should you set aside for taxes on 1099 income? The honest answer: the common "save 25–30%" rule is a decent starting point, but your real number depends on your profit, your filing status, and whether you also have W-2 wages. This calculator computes your actual 2026 self-employment tax and federal income tax, then tells you the exact percentage. No more guessing.

How this estimate is built

1. SECA base. Self-employment tax applies to 92.35% of your net Schedule C profit (this mirrors the employer half you'd never see as a W-2 employee).
2. Social Security. 12.4% on the SECA base, but capped, the 2026 wage base is $184,500. If you have W-2 wages, they use up wage-base room first. That's why the calculator asks for them.
3. Medicare. 2.9% on the full SECA base, uncapped. An extra 0.9% Additional Medicare Tax applies to combined income over $200,000 (single) / $250,000 (married filing jointly).
4. Deductible half. Half of your SE tax is deducted above the line before income tax is computed. The calculator applies this automatically.
5. Income tax. Estimated on profit − half SE tax − the 2026 standard deduction ($16,100 single / $32,200 MFJ), using 2026 brackets. State tax is not included.

Is the 25–30% rule right?

For a single filer with roughly $50k–$150k of profit and no other income, the exact figure usually lands between 25% and 32% of net profit, so the rule works as a rough default. But it breaks at the edges: at $20k of profit your effective rate can be near 15–18% (much of your income is sheltered by the standard deduction), and above the Social Security cap the marginal percentage drops because the 12.4% piece stops accruing. Run your real numbers above instead of trusting a blanket percentage.

Quarterly estimated taxes in 2026

Set-asides only work if they're actually paid. Estimated tax due dates for the 2026 tax year: April 15, June 15, September 15, 2026 and January 15, 2027. A safe harbor: pay 100% of your 2025 total tax (110% if your 2025 AGI was over $150,000), or 90% of the tax you'll owe for 2026, whichever is smaller avoids the underpayment penalty.

FAQ

How much should I set aside if I made $50,000 on 1099?

For a single filer in 2026, expect roughly $10,000–$12,500 total federal (SE tax ~$7,065 + income tax), i.e. about 20–25% of profit, below the generic 25–30% rule. Try the calculator with your exact numbers.

Do I pay self-employment tax on top of income tax?

Yes, SE tax is separate from income tax, which is why 1099 earners pay more than employees at the same gross income. But you get to deduct half of the SE tax, and you can deduct business expenses before either tax applies.

Why does the calculator ask for W-2 wages?

Because the Social Security 12.4% portion caps at $184,500 of combined wages + SE income in 2026. If you already have $120,000 of W-2 wages, only $64,500 of your SECA base pays Social Security tax. Ignoring this overstates your SE tax.

Should I set aside 30% or 25%?

Set aside the exact percentage this calculator gives you, plus a small buffer (~2–3 points) if your income is volatile. The generic 30% figure overshoots most sub-$100k earners and undershoots high earners in high-tax states.

Does this include state taxes?

No, this is federal only. State income tax on self-employment income typically adds 0% (no-tax states) to ~10% (CA, NY, NJ) more. Add your state's rate to the set-aside percentage if you want a combined figure.

Sources

• SSA 2026 fact sheet, Social Security wage base $184,500
• IRS, Self-Employment Tax (Topic 754): 12.4% SS + 2.9% Medicare, 92.35% base, deductible half
• IRS, Social Security & Medicare Withholding Rates (Topic 751): 15.3% combined, 2026 wage base $184,500
• IRS, Additional Medicare Tax (Form 8959): 0.9% over $200k/$250k
• Rev. Proc. 2025-32, 2026 tax brackets and standard deductions

Last verified 2026-09-18. Educational estimate, not tax advice, confirm with a CPA.