How the calculator works
It asks for your freelance income, home office size and equipment costs and works out self-employment tax, federal income tax after the standard and QBI deductions, and state income tax for the 2026 tax year, with the same rules as the full estimator. Filing status, state and any other costs come from what you saved in the full estimator; the line under the result lists them. It does not cover W-2 wages, itemized deductions or the overtime deduction; the tips deduction is on step 3 of the full estimator. For every deduction and the full breakdown, open the estimator set up for freelancers.
How the income is taxed
Freelancers owe self-employment tax of 15.3% on net earnings, plus federal and state income tax. Clients send a 1099-NEC, and nothing is withheld, so paying during the year is up to you.
Freelancers usually have more deductions than employees: a home office, equipment and software come off before tax.
Common deductions
| Deduction | 2026 figure | Notes |
|---|---|---|
| Home office (simplified method) | $5.00 a square foot, up to $1,500 | Used regularly and only for work |
| Laptop, monitor, equipment | What you paid | Used for the work |
| Software subscriptions | What you paid | Used for the work |
| Phone and internet | Business share of the bill | In proportion to work use |
| Courses, books, conferences | What you paid | Used for the work |
| Health insurance premiums | What you paid | If you could not get coverage through an employer plan |
| SEP-IRA or Solo 401(k) | Up to $72,000 (2026) | 20% of net earnings after half the self-employment tax |
| Half of self-employment tax | Worked out for you | Comes off before income tax |
A home office counts only if the space is used regularly and only for work; a spare room that is also a guest room does not qualify. Most freelancers can also take the qualified business income (QBI) deduction of up to 20%, which the estimator applies for you.
An example
Example. A single freelance designer in California earns $85,000 in 2026. 200 square feet of home office, equipment and software bring business expenses to $6,500, so net earnings are $78,500.
Self-employment tax is $11,092. After half of it and $4,800 of health insurance premiums, the $16,100 standard deduction and a QBI deduction of $10,411, taxable income is $41,643 and federal income tax is $4,749. California income tax at the typical rate of 6.4% is $3,331.
Total estimated tax is $19,172, about $4,793 a quarter. The methodology page shows each rule used.
Quarterly payments
Nobody withholds tax from 1099 income, so the IRS expects estimated payments during the year. For the 2026 tax year the due dates are:
| Quarter | Income earned | Due |
|---|---|---|
| Q1 | Jan 1 – Mar 31 | April 15, 2026 |
| Q2 | Apr 1 – May 31 | June 15, 2026 |
| Q3 | Jun 1 – Aug 31 | September 15, 2026 |
| Q4 | Sep 1 – Dec 31 | January 15, 2027 |
The fourth payment for 2026 income is due in January 2027. If an earlier date has passed and is still unpaid, pay as soon as you can; the IRS charge for paying late grows by the day. The calculator shows the quarterly amount for your numbers.
Before you rely on it
This guide and the estimator give estimates for planning, not tax advice. GigWorkerTax is not connected to the IRS or to any gig platform. See the disclaimer, and talk to a licensed tax professional about your own return.