"What's the tax rate on 1099 income?" is the most-searched question in freelance tax, and the honest answer is that there isn't one rate — there are three stacked on top of each other. This guide shows exactly how they combine, what the effective rate is at every income from $10,000 to $300,000, and walks through a $75,000 contractor's return line by line. Every number comes from the same 2026 engine that powers our 1099 tax calculator.
The short answer for 2026: you pay 15.3% self-employment tax on 92.35% of your net profit, plus federal income tax at 10–37% on what's left after deductions, plus state income tax of 0–13.3%. For a single filer with no state tax, the combined effective rate is about 18% at $30,000, 23% at $75,000, 26% at $100,000 and 31% at $300,000 of net profit.
When you're an employee, Social Security and Medicare (FICA) come out of your paycheck at 7.65%, and your employer quietly pays a matching 7.65%. On 1099 income you are both the employee and the employer, so you pay the whole 15.3%: 12.4% for Social Security and 2.9% for Medicare. It's reported on Schedule SE and it applies whether or not you owe any income tax.
Three details soften it slightly:
| Net profit | SE tax | Effective SE rate | Half deducted from AGI |
|---|---|---|---|
| $400 | $57 | 14.1% | $28 |
| $10,000 | $1,413 | 14.1% | $706 |
| $50,000 | $7,065 | 14.1% | $3,532 |
| $100,000 | $14,130 | 14.1% | $7,065 |
| $200,000 | $28,234 | 14.1% | $14,117 |
| $250,000 | $29,851 | 11.9% | $14,926 |
| $300,000 | $31,606 | 10.5% | $15,803 |
Notice the rate is flat at 14.1% all the way to $200,000, then falls once Social Security caps out. This is why self-employment tax hurts lower and middle earners proportionally more than high earners — a $30,000 freelancer pays the same 14.1% as a $180,000 one.
After self-employment tax, your profit is also ordinary income, taxed at the same seven brackets as everyone else. The 2026 figures from IRS Rev. Proc. 2025-32:
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $17,700 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 | $17,700 – $67,450 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 | $67,450 – $105,700 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 | $105,700 – $201,775 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 | $201,775 – $256,200 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 | $256,200 – $640,600 |
| 37% | over $640,600 | over $768,700 | over $640,600 |
The brackets apply to taxable income, which for a 1099 worker is: net profit − half of SE tax − the standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household in 2026) − any other above-the-line deductions such as retirement contributions or health insurance premiums.
Being "in the 22% bracket" does not mean 22% of your income goes to federal income tax. Only the dollars inside that bracket are taxed at 22%; the first $12,400 of taxable income is always taxed at 10%, the next $38,000 at 12%, and so on. The average rate you actually pay across all your income is the effective rate, and for most freelancers it's far lower than the bracket number.
| Net profit (1099 income minus expenses) | $75,000 |
| Self-employment tax: 15.3% × 92.35% × $75,000 | $10,597 |
| Deduct half of SE tax | − $5,299 |
| Adjusted gross income | $69,701 |
| Standard deduction (single) | − $16,100 |
| Taxable income | $53,601 |
| Federal income tax: 10% × $12,400 + 12% × $38,000 + 22% × $3,201 | $6,504 |
| Total federal tax | $17,101 |
| Marginal bracket | 22% |
| Effective rate on $75,000 | 22.8% |
| Take-home before state tax | $57,899 |
Of the $17,101, 62% is self-employment tax and only 38% is income tax. This is true for almost every freelancer under about $110,000: SE tax is the bigger bill. It also explains why the "I only pay 22%" instinct is wrong — the 22% bracket touched just $3,201 of this person's income.
Single filer, standard deduction, no state tax, no QBI or retirement deductions. This is the number to use if you want a quick "what percentage will I pay" answer.
| Net profit | SE tax | Federal income tax | Total | Effective rate | Take-home |
|---|---|---|---|---|---|
| $10,000 | $1,413 | $0 | $1,413 | 14.1% | $8,587 |
| $20,000 | $2,826 | $249 | $3,075 | 15.4% | $16,925 |
| $30,000 | $4,239 | $1,178 | $5,417 | 18.1% | $24,583 |
| $40,000 | $5,652 | $2,281 | $7,933 | 19.8% | $32,067 |
| $50,000 | $7,065 | $3,396 | $10,461 | 20.9% | $39,539 |
| $60,000 | $8,478 | $4,511 | $12,989 | 21.6% | $47,011 |
| $75,000 | $10,597 | $6,504 | $17,101 | 22.8% | $57,899 |
| $100,000 | $14,130 | $11,616 | $25,745 | 25.7% | $74,255 |
| $125,000 | $17,662 | $16,727 | $34,389 | 27.5% | $90,611 |
| $150,000 | $21,194 | $22,191 | $43,385 | 28.9% | $106,615 |
| $200,000 | $28,234 | $33,346 | $61,580 | 30.8% | $138,420 |
| $250,000 | $29,851 | $46,528 | $76,379 | 30.6% | $173,621 |
| $300,000 | $31,606 | $62,603 | $94,209 | 31.4% | $205,791 |
Married filing jointly on one 1099 income is noticeably lower because the standard deduction and brackets are doubled: 17.0% at $50,000, 19.5% at $75,000, 20.9% at $100,000, 22.8% at $150,000 and 25.7% at $200,000. A couple where both spouses earn changes the picture again — run your own numbers in the calculator.
Nine states charge nothing on self-employment income: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. The other 41 plus DC add anywhere from about 2.5% (Arizona's flat rate) to 13.3% (California's top bracket), and the ranking at a freelancer's income is not what the headline rates suggest. At $75,000 of profit, single:
| State | State tax at $75,000 | Combined effective rate |
|---|---|---|
| Texas, Florida (no income tax) | $0 | 22.8% |
| North Carolina (3.99% flat) | $2,272 | 25.8% |
| Pennsylvania (3.07% flat, no standard deduction) | $2,303 | 25.9% |
| California (progressive 1%–13.3%) | $2,364 | 26.0% |
| New York (progressive 3.9%–10.9%) | $3,167 | 27.0% |
| Illinois (4.95% flat) | $3,305 | 27.2% |
California is cheaper than Illinois at this income because California's low starting brackets do most of the work below $70,000; the reputation for high tax is earned above $100,000. The full ranking of all 50 states is in our freelancer tax rate by state table, and every state has its own calculator page (for example California, New York, Illinois).
Two different thresholds get mixed up constantly:
Below $400 of net profit there's no SE tax and you fall back to the ordinary filing thresholds, which for 2026 roughly equal the standard deduction ($16,100 single). Between $400 and about $17,000 of profit you'll typically owe SE tax but little or no income tax — the $10,000 row in the table above shows exactly that: $1,413 of SE tax, $0 of income tax.
The tables above assume nothing but the standard deduction. In practice most freelancers pay less, because:
Forming an LLC. A single-member LLC is taxed identically to a sole proprietor. Only an S-corp election changes the SE tax math, and it's rarely worth it below $80,000–$100,000 of consistent profit — details in the independent contractor calculator page.
At the same gross figure, yes. The employee pays 7.65% FICA; the contractor pays 14.13% SE tax, then gets half of it back as a deduction. At $75,000 that works out to a 1099 total of $17,101 against a W-2 total of roughly $14,290 in federal taxes — a gap of about $2,800 before state tax. But the comparison flips when you add the things contractors can do: deduct expenses, take QBI, and shelter far more in retirement accounts. A contractor with modest expenses and a funded Solo 401(k) frequently pays a lower effective rate than an employee on the same gross. The full side-by-side is in W-2 vs 1099: the real tax cost difference.
Enter your income, expenses, filing status and state — see SE tax, federal, state, effective rate and quarterly payments in one screen.
Open the 1099 Tax Calculator →What is the tax rate on 1099 income in 2026?
There is no single 1099 tax rate. You pay 15.3% self-employment tax on 92.35% of net profit, plus federal income tax at 10–37% on what is left after deductions, plus state income tax of 0–13%. For a single filer the combined federal effective rate runs from about 14% at $10,000 of profit to 31% at $300,000.
How much of my 1099 income is taxed?
Only your net profit — 1099 income minus business expenses — is taxed. Self-employment tax applies to 92.35% of that profit. Income tax applies to profit minus half your SE tax minus the standard deduction ($16,100 single, $32,200 married in 2026).
Is 1099 income taxed more than W-2 income?
Yes, at the same gross amount, because a 1099 worker pays both halves of Social Security and Medicare (15.3%) while an employee pays only 7.65%. The gap is partly offset by deducting half of SE tax and by business deductions employees cannot claim, so the net difference at $75,000 is roughly $3,000–$3,500 a year.
How much 1099 income do you have to make to file taxes?
If your net self-employment profit is $400 or more you must file a return and pay self-employment tax, even if you owe no income tax. Below $400 of net profit, the normal filing thresholds apply (roughly the standard deduction). The $2,000 1099-NEC form threshold has nothing to do with whether the income is taxable.
How much tax do I pay on $50,000 of 1099 income?
A single filer with $50,000 of net 1099 profit and no state tax pays about $10,461 in 2026: $7,065 self-employment tax and $3,396 federal income tax, an effective rate of 20.9%. In a state with income tax, add roughly $850 (California) to $2,150 (Illinois).
Sources: IRS Rev. Proc. 2025-32 (2026 brackets and standard deductions); IRS Schedule SE instructions; SSA 2026 contribution and benefit base ($184,500); IRS Topic 560 (Additional Medicare Tax); Tax Foundation 2026 state individual income tax rates. Estimates for planning only — not tax advice.