Safe-to-Spend Calculator

Just got paid? See what to set aside for taxes, and what’s actually yours.

Estimate only, for planning. Not tax advice. Your actual tax depends on your full return, so check with a tax pro.

Common write-offs for the trades

Truck mileage

Business miles in 2026 are worth 72.5¢ a mile through June 30 and 76¢ a mile from July 1 (IRS standard mileage rate). Driving between jobs, to the supply house, and to bid counts; your commute from home to a regular shop usually doesn’t. Keep a log with date, miles and purpose. Parking and tolls on business trips are deductible on top.

Tools and equipment

Saws, drills, ladders, compressors, trailers and other gear you buy for the work. Most can be written off in the year you buy them.

Materials and supplies

Lumber, fasteners, wire, pipe, paint, caulk and anything else that goes into a job, plus shop supplies and consumables like blades and bits.

Safety gear

Hard hats, safety glasses, hearing protection, gloves, respirators, harnesses and steel- or composite-toe boots.

Phone and internet (business part)

The share of your cell phone and internet bill that’s used for the business. If it’s 60% business use, deduct 60%.

Licenses and insurance

Contractor license and renewal fees, business registration, bonding, and general liability or tool insurance for the business.

Software

Estimating, invoicing, scheduling and bookkeeping apps you pay for to run the business.

Workwear — only if it isn’t everyday clothing

Clothing counts only when it’s required for the work and not suitable for everyday wear, like flame-resistant (FR) gear or uniforms with your company logo. Regular jeans, T-shirts and work boots you could wear anywhere usually don’t qualify.

Frequently asked questions

How much should a 1099 contractor set aside?

Most solo contractors should set aside somewhere between 20% and 30% of their profit (what’s left after materials and expenses), not of every dollar that comes in. Self-employment tax alone is about 14.1% of profit, and federal and state income tax come on top. A single filer in North Carolina clearing $50,000 a year should save about 23%. Use the calculator above for your own number.

What is self-employment tax?

It’s Social Security and Medicare for people who work for themselves. You pay both the employee and employer halves: 12.4% for Social Security (on up to $184,500 of earnings in 2026) plus 2.9% for Medicare, figured on 92.35% of your net profit. You owe it once your net self-employment earnings reach $400, and you get to deduct half of it on your income tax return.

When are quarterly taxes due?

For the 2026 tax year, estimated payments are due April 15, 2026, June 15, 2026, September 15, 2026, and January 15, 2027. If a date falls on a weekend or legal holiday, it moves to the next business day. You can pay the IRS online through IRS Direct Pay or your IRS Online Account.

Do I have to pay quarterly?

Generally yes, if you expect to owe $1,000 or more in federal tax for the year after subtracting withholding and credits. If you also have a W-2 job, you can raise your withholding there instead of (or as well as) sending quarterly payments. Skipping payments you owe can mean an underpayment penalty, even if you pay everything in April.

What’s the safe harbor rule?

You generally won’t owe an underpayment penalty if your withholding plus on-time estimated payments cover at least 90% of this year’s tax, or 100% of last year’s tax (110% if last year’s adjusted gross income was over $150,000, or $75,000 if married filing separately). Paying 100% or 110% of last year’s tax in four equal payments is the simplest way to stay penalty-free when your income jumps around.