2026 Tax Calculator: Federal + State + SE Tax for Self-Employed

The 2026 tax calculator on this page uses every official IRS figure for tax year 2026 — the income brackets, the standard deduction, the QBI threshold, the Social Security wage base, the §415(c) retirement contribution caps, and the OBBBA-era 1099 thresholds. Results are an estimate of federal income tax + self-employment tax + state income tax for self-employed Americans (1099 contractors, freelancers, gig workers, sole props, single-member LLCs).

Estimate your 2026 taxes in 30 seconds Run the calculator → Federal + state + SE tax · 50-state coverage · No signup

2026 federal tax brackets (TY 2026, filed 2027)

Per IRS Rev. Proc. 2025-32 + OBBBA P.L. 119-21 inflation adjustments. The seven federal income tax brackets in 2026:

Single filers


Income range	Marginal rate
$0 – $12,400	10%
$12,400 – $50,400	12%
$50,400 – $105,700	22%
$105,700 – $201,775	24%
$201,775 – $256,225	32%
$256,225 – $640,600	35%
$640,600+	37%

Married filing jointly


Income range	Marginal rate
$0 – $24,800	10%
$24,800 – $100,800	12%
$100,800 – $211,400	22%
$211,400 – $403,550	24%
$403,550 – $512,450	32%
$512,450 – $768,700	35%
$768,700+	37%

2026 standard deduction

Single: $16,100
Married filing jointly: $32,200
Head of household: $24,150
Married filing separately: $16,100

OBBBA permanently raised the post-TCJA standard deduction by ~$750 single / $1,500 MFJ. The 2026 figures above are inflation-adjusted from the OBBBA-raised 2025 baseline.

2026 self-employment tax

Self-employment tax is 15.3% on net SE income × 0.9235. The two components:

Social Security: 12.4% on net SE up to the $184,500 wage base (TY 2026 — up from $176,100 in 2025)
Medicare: 2.9% on all net SE income (no cap)
Additional Medicare: +0.9% on income over $200,000 single / $250,000 MFJ

You can deduct half of your SE tax (the "halfSE deduction") as an above-the-line adjustment to federal AGI. Full SE tax breakdown.

2026 QBI deduction (§199A)

The 20% Qualified Business Income deduction phases in above:

Single threshold: $201,775 (full phase-in by $276,775)
MFJ threshold: $403,550 (full phase-in by $553,550)

Below the threshold, both SSTBs and non-SSTBs get the full 20%. Above the threshold:

SSTBs (consulting, health, law, accounting, financial services, etc.) phase out completely
Non-SSTBs face the W-2 wage / UBIA limitation — most solo freelancers without W-2 employees lose the deduction

QBI calculator with W-2 wage toggle.

2026 retirement contribution limits

401(k) employee deferral: $24,500 (up from $23,500 in 2025)
Standard catch-up at age 50+: +$8,000 (total $32,500)
SECURE 2.0 enhanced catch-up at ages 60-63: +$11,250 (total $35,750) — IRS Notice 2025-67
Solo 401(k) total cap (§415(c)): $72,000 under 50 / $80,000 at 50+ / $83,250 at 60-63
SEP-IRA cap: $72,000 (matches §415(c))
IRA contribution limit: $7,500 base / $8,600 at 50+ (catch-up now COLA-indexed under SECURE 2.0 §108, per IRS Notice 2025-67)
HSA self-only: $4,400 / family $8,750

Solo 401(k) calculator with all four age tiers.

2026 1099 thresholds (post-OBBBA)

1099-NEC (services): $2,000 (raised from $600 by OBBBA, effective TY 2026)
1099-MISC (rent, prizes, medical): $2,000 (raised from $600 by OBBBA, effective TY 2026; royalties stay $10, attorney gross proceeds stay $600)
1099-K (PayPal, Venmo, Stripe, Etsy): $20,000 + 200 transactions (OBBBA permanently restored — the $5k/$2.5k/$600 stepdown was repealed)

2026 vehicle + equipment deductions

Standard mileage rate: $0.725/mile
Section 179 deduction cap: $2,560,000
§179 phase-out start: $4,090,000
Bonus depreciation: 100% permanent (OBBBA — restored from the TCJA glide path that hit 80% in 2023, 60% in 2024, 40% in 2025)
Passenger vehicle first-year cap: $20,200
SUV §179 cap: $30,500

2026 quarterly estimated tax deadlines

Q1: April 15, 2026 (Wednesday)
Q2: June 15, 2026 (Monday)
Q3: September 15, 2026 (Tuesday)
Q4: January 15, 2027 (Friday)

State deadlines often differ — Hawaii adds 5 days (Apr 20 / Jun 20 / Sep 20 / Jan 20), Iowa uses month-ends (Apr 30 / Jun 30 / Sep 30 / Jan 31), Virginia Q1 is May 1, Delaware Q1 is April 30. Your state.

2026 underpayment penalty rate

The IRS underpayment penalty is the federal short-term rate + 3%, recalculated quarterly. For 2026:

Q1 2026: 7%
Q2-Q4 2026: 6%

Avoid the penalty by hitting safe harbor: pay 100% of last year's tax (110% if prior-AGI > $150k). Safe-harbor guide.

What's new in 2026 vs 2025


Item	2025	2026	Change
Std deduction (single)	$15,000	$16,100	+$1,100
Std deduction (MFJ)	$30,000	$32,200	+$2,200
Top 37% bracket (single)	$626,350	$640,600	+$14,250
SS wage base	$176,100	$184,500	+$8,400
401(k) employee deferral	$23,500	$24,500	+$1,000
§415(c) DC plan limit	$70,000	$72,000	+$2,000
QBI threshold (single)	$201,750	$201,775	+$25
§179 cap	$1,250,000	$2,560,000	+$1.31M (OBBBA)
1099-NEC threshold	$600	$2,000	+$1,400 (OBBBA)
Mileage rate	$0.725	$0.725	no change

How the calculator works

Enter gross income — your total 1099 / freelance / business revenue for 2026
Subtract business expenses — Schedule C deductions (home office, mileage, equipment, software, etc.)
Calculator computes net SE income — gross minus expenses
SE tax applied to net SE × 0.9235 at 15.3% (with SS cap at $184,500)
Half-SE deduction subtracted from AGI (above-the-line)
Retirement + health insurance contributions reduce AGI further
Standard deduction ($16,100 / $32,200 / $24,150) and QBI deduction reduce taxable income
Federal income tax applied at 2026 brackets
State income tax applied at your state's rate (50-state coverage)
Result: total annual tax + monthly + quarterly estimated payment

Ready to estimate your 2026 taxes? Run the calculator → Federal + state + SE tax in 30 seconds. 50-state coverage. No signup.

How TY 2026 compares to TY 2025 — the inflation adjustments

Most of the 2026 changes are inflation adjustments to the same parameters we've had for years. Key ones:

Standard deduction up ~$300 (single) / $600 (MFJ) from 2025 — keeps pace with CPI
Federal income tax brackets each shifted up ~2.7% — the same bracket percentages, applied to slightly more income before each threshold
SS wage base up from $176,100 (2025) to $184,500 (2026) — the SS-portion of SE tax now applies to $8,400 more of net SE income before capping out
HSA limits up $250 self-only / $500 family — keeps slight lead over typical health-care inflation
401(k) deferral up $1,000 from $23,500 (2025) to $24,500 (2026) — important for high-saver freelancers
Section 179 cap up to $1,160,000 — irrelevant for most solo freelancers but matters for asset-heavy businesses
Mileage rate increased to $0.725/mile (from $0.67 in 2025) — reflects higher fuel + maintenance costs

Most freelancers see a small "tax cut" year-over-year from these adjustments alone, even with no change in real income. The brackets and deductions track inflation reasonably well in 2026.

The OBBBA changes — what's structurally new

The One Big Beautiful Bill Act (OBBBA) of late 2025 made several structural changes that take effect for TY 2026:

1099-NEC + 1099-MISC threshold raised from $600 to $2,000. Affects WHO sends you a form, not what's taxable. You still owe tax on income below $2,000 — you just won't get a 1099 for it.
1099-K threshold confirmed at $20,000 + 200 transactions. Reverses several years of IRS-administrative-delay limbo on the $600 threshold proposed under ARPA 2021.
TCJA individual provisions made permanent. The 7-bracket structure with 37% top rate, $13,850-equivalent standard deduction (now $16,100 inflation-adjusted), QBI 20% deduction, and SALT $10k cap all extended without expiration.
Bonus depreciation phase-down continues. 60% in 2026, scheduled to drop to 40% in 2027, 20% in 2028, 0% by 2029 unless extended again.
Various clean-energy and EV credits reauthorized at modified levels (see Section 25E, 30D for the specifics most relevant to freelancers buying business vehicles).

Tax-planning angles unique to 2026

The 2026 environment creates a few specific planning moves worth considering:

Accelerate equipment purchases into 2026 if possible — bonus depreciation drops from 60% to 40% in 2027. A $5,000 camera bought in December 2026 deducts $3,000 immediately via bonus; same camera bought January 2027 deducts only $2,000 immediately.
Max the Solo 401(k) deferral. $24,500 employee + 25% of net SE × 0.9235 employer profit-sharing = up to ~$70k+ tax-deferred for high earners. Reduces both income tax AND the AGI on which subsidies/phase-outs are calculated.
S-corp election timing. For freelancers consistently above $80k net, the S-corp election (Form 2553) saves SE tax going forward. Filing deadline: March 15 of the year you want it to take effect, or 75 days after entity formation.
QBI deduction for non-SSTB freelancers. If you're a creative-output freelancer (designer, writer, photographer, developer) you're generally NOT a Specified Service Trade or Business — QBI applies even at high incomes. For SSTB freelancers (lawyers, accountants, consultants providing advice), QBI phases out for SSTBs between $201,775–$276,775 single / $403,550–$553,550 MFJ for 2026 (per OBBBA-expanded Rev. Proc. 2025-32).

How to use this calculator for quarterly planning

Most freelancers underpay Q1 and Q2 because they're working off last year's numbers, then scramble in Q3 when their YTD income blows past projection. Use the calculator at the end of each estimated-tax quarter as a checkpoint — here's the four-step loop.

Step 1: Pull your year-to-date profit. Open your Schedule C, accounting software, or shoebox of receipts at the end of the quarter (Q1 closes March 31, Q2 closes May 31, Q3 closes August 31, Q4 closes December 31 — those are the IRS estimated-payment quarter ends, NOT calendar quarters). Pull net profit through the quarter end — gross revenue minus deductible expenses.

Step 2: Annualize. If you're at the end of Q1 (3 months), multiply by 4. End of Q2 (5 months), multiply by 2.4. End of Q3 (8 months), multiply by 1.5. End of Q4, your annual number is already your annual number. This gives you a straight-line projection of full-year net SE income.

Step 3: Run the projection through the calculator. Plug the annualized number in as your income for the year. The calculator gives you projected federal + state + SE tax for the full year using the 2026 brackets, the $184,500 SS wage base, the standard deduction, and your state's rate.

Step 4: Divide by 4. That's your quarterly payment target. Q1 due April 15, Q2 due June 15, Q3 due September 15, Q4 due January 15, 2027. Pay via Direct Pay at irs.gov/payments/direct-pay (free, takes 5 minutes, no signup) or EFTPS if you prefer scheduled payments.

Worked example. A freelance designer has $25,000 net profit through Q1 (end of March). Annualized = $100,000. Running through the calculator at single filing status with no state tax (Florida): roughly $15,200 federal + $14,130 SE tax = $29,330 annual. Quarterly payment: $7,332. Pay by April 15. Re-run at end of Q2 if income trajectory shifts more than 10% off the annual projection — that's the safe-harbor-tolerance threshold and the trigger to adjust Q3 and Q4 payments rather than waiting until filing.

Frequently asked questions

Why is my federal estimate higher than last year's?
Several possibilities. OBBBA stability means 2026 brackets are inflation-adjusted upward (slightly LOWER effective rate at the same income). If your estimate is higher, the cause is usually (a) more income, (b) you switched from W-2-with-401k to 1099 and lost pre-tax payroll deductions, or (c) state moved you into a higher progressive bracket. Compare the per-bracket breakdown in the calculator's results section to pinpoint which line jumped.

Does this calculator include state income tax?
Yes. Select your state in the dropdown. We use real progressive brackets for the 22 graduated-tax states (CA, NY, NJ, etc.) and the flat-rate published rate for the rest. The 9 no-income-tax states (AK, FL, NV, NH on wages, SD, TN, TX, WA, WY) show $0 state. WA is special — it has the new 7% capital gains tax above $250k, not on wages or SE.

How accurate is the QBI estimate for high earners?
For non-SSTB filers below the $201,775 single / $403,550 MFJ threshold, very accurate — full 20% deduction. Above the threshold, we apply the W-2 wages limitation phase-in. For SSTB filers (consulting, health, law, finance), the deduction phases out fully across the $75k single / $150k MFJ range above the threshold. Run our dedicated QBI calculator for edge cases.

Should I add my W-2 income if I have a day job?
Yes. Total income matters for bracket placement. If you earn $60k W-2 + $40k 1099, your federal income tax bracket reflects $100k taxable income (after deductions), not $40k. SE tax is computed only on the $40k SE portion, but federal income tax stacks the bracket. Use the "Add W-2 income" field in the calculator to get an accurate joint estimate.

Does the calculator handle married-filing-separately?
Not currently — we model single, MFJ, and HoH. MFS is a niche status (typically used when one spouse has medical-deduction or income-based student-loan-repayment strategy reasons to file separately). For MFS, run the calculator as single and add your spouse's separate AGI manually for the QBI threshold check.

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Estimates only — not tax, legal, or financial advice. Sources: IRS Rev. Proc. 2025-32 (TY 2026 inflation adjustments), IRS Notice 2025-67 (TY 2026 retirement plan limits), OBBBA P.L. 119-21 (1099 thresholds + bonus depreciation + §179), state DOR guidance for state rates and deadlines. For decisions affecting your finances, consult a licensed CPA or enrolled agent.

This article is for educational purposes only. It is not personalized tax, legal, or financial advice. Quarterly1099 is published by Vincent Roy and is not a CPA, EA, or licensed tax preparer. All content is sourced from IRS publications and current tax law. Fact-checked against IRS publications and 2026 Rev. Proc. 2025-32. For your specific situation, consult a licensed CPA or Enrolled Agent. See our full disclaimer.

Written by Vincent Roy

Published May 7, 2026 · Updated May 22, 2026

Sourced from IRS publications. Not personalized tax advice — see disclaimer.

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