2026 federal estimate

Know what to hold back before the payout lands.

Turn gig income, mileage, expenses and household tax context into a practical annual reserve, quarterly payment, and per-payout set-aside rate.

01

Gig income

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For 2026 payments, the 1099-NEC/MISC reporting threshold is $2,000. Every dollar of income is taxable even if no form is issued.

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Include tips in Gross income above; enter the qualifying portion again here to claim the deduction.

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Qualified tips must meet IRS rules; the deduction is capped at $25,000 per return and cannot exceed net income from the business where the tips were earned.

02

Business mileage

2026 uses two IRS rates, so split miles by half-year.

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Do not also include vehicle costs above if you use the standard mileage method. Keep a mileage log and confirm eligibility.

03

Tax context

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Use total tax from last year’s Form 1040.

The 110% rule generally applies above $150,000 of prior-year AGI, or $75,000 if married filing separately.

State rules are not automated in this first version. A rate you enter is applied to net gig profit as a rough reserve, not a state return calculation.

How the estimate works

Transparent math, conservative caveats.

This calculator estimates regular federal income tax and self-employment tax for a calendar-year sole proprietor using the 2026 IRS brackets and standard deduction.

1Net profit = gross gig income minus business expenses and eligible standard-mileage deduction.
2Self-employment tax uses 92.35% of net profit, a 12.4% Social Security component up to the 2026 wage base, and a 2.9% Medicare component. Additional Medicare tax is included above the filing-status threshold.
3Income tax applies the standard deduction, one-half of regular self-employment tax, the qualified-tip deduction entered, and a simplified QBI deduction before the 2026 marginal brackets.
4The main reserve targets the full projected balance. The separate safe-harbor guide applies credits before the 90% current-year test, compares that result with 100%/110% of prior-year total tax, and then accounts for withholding and payments, based on the AGI rule you select.
Estimate only—not tax advice. It does not model itemized deductions, dependents, capital gains, retirement or health-insurance deductions, alternative minimum tax, every QBI limitation, local tax, or state-specific rules. Uneven income may require the annualized-income method. Confirm the result with IRS Form 1040-ES or a qualified tax professional.

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