What "take-home" means for a 1099 worker
When you're paid on a 1099, nothing is withheld — the full amount hits your account, but a big chunk of it isn't really yours. You owe self-employment tax (15.3% on most of your net profit) and federal income tax. This calculator shows what's actually left after both, and — crucially — what percentage of each payment you should be setting aside so you're never short at tax time.
How to use it
- Enter your annual 1099 gross income — the total you're paid.
- Enter your business expenses. Every legitimate expense lowers your net profit, which lowers both your self-employment tax and your income tax — so this field matters a lot.
The result shows your net profit, the self-employment and income tax on it, your take-home, and the share of gross income to reserve for taxes.
Why expenses are your biggest lever
Unlike a W-2 employee, you can deduct the ordinary, necessary costs of doing business — home office, equipment, mileage (72.5¢/mile for 2026), software, supplies, phone, and more. Because those deductions cut both taxes at once, tracking them carefully is the highest-value habit a 1099 worker can build. The difference between claiming $5,000 and $15,000 of legitimate expenses can be a few thousand dollars in tax.
Don't forget quarterly payments and state tax
Because nothing is withheld, you generally owe quarterly estimated taxes — pay them and you avoid an underpayment penalty. This calculator estimates federal tax only; if your state has an income tax, your real take-home is lower still, so budget for it. And remember the self-employed can deduct health insurance premiums and shelter income in a SEP-IRA or Solo 401(k), both of which raise your take-home over time.
1099 vs. a salary
A common surprise: the same dollar figure as a 1099 contractor leaves you with less than it would as a W-2 salary, because you pay the employer half of payroll tax yourself. That's why contractors should charge more than the equivalent salary. See exactly how much more with the 1099 vs W-2 calculator, and estimate your full self-employment tax with the SE tax calculator.