How much to set aside for taxes as a self-employed contractor in 2026 (free calculator)

Published November 4, 2026 · IRS and state revenue figures checked November 4, 2026

• Free. The calculator comes as a Google Sheets copy or an Excel file; the links come by email.
• Deepsel is our product: free estimate, invoice and scheduling software for contractors (scheduling, quotes, invoicing, card payments). One section, the one before the FAQ, says how it connects to this page.
• Not tax advice. Every figure is a 2026 rule I read on IRS.gov or the state's revenue site on November 4, 2026. Tax law changed in 2025 and states change rates most years. The calculator gives an estimate; your accountant has the last word.
• The owner quotes are from Reddit, checked on the live threads November 4, 2026.

Set aside about a quarter of your profit. For 2026, a single contractor with no other income owes the IRS about 17% of profit at $30,000, 20% at $60,000 and 22% at $100,000. State income tax adds 1 to 5 points in the 13 states we cover, so at $60,000 the total runs from 22% to 25%, and 27% in New York City. Profit is what's left after materials and business costs, so the share of each customer payment is smaller: a contractor who keeps $60,000 out of $100,000 of sales moves about 13% to 15% of every payment into a separate tax account the day it lands.

The calculator does that arithmetic with your state, your filing status and your own numbers, then lists your payments with their due dates. Get it two ways: make your own copy in Google Sheets or download the Excel version (.xlsx). Pick one, enter your email and I'll send the link.

A handyman asked the question this way in October, in his first year: "Very small handyman business, first year. Accountant suggests I should look into filing estimated taxes. Not quite sure if I'm big enough to have to go through that hassle."¹ The replies split. One owner who'd also started that year puts aside 30% of every job; another pays the penalty and keeps the money for tools.¹ Search Google and you get the same 25% to 30% rule from tax software sites written for freelancers. It's about right at $100,000 of profit and too high at $30,000, and none of those pages deal with sales tax on materials, which is where a contractor's state really matters.

Where the money goes: self-employment tax, then income tax

Two federal taxes come out of a contractor's profit.

Self-employment tax is the Social Security and Medicare an employer used to split with you. Now you pay both halves: 15.3%, made of 12.4% for Social Security and 2.9% for Medicare.² It's charged on 92.35% of your net earnings, and only once those reach $400.³ The Social Security part stops at $184,500 of combined wages and self-employment earnings for 2026 ($192,300 for 2027³⁶), and above $200,000 ($250,000 married filing jointly) an extra 0.9% Medicare tax starts. Half of the self-employment tax comes off your income before income tax is figured.²

Income tax comes after deductions. For 2026 the standard deduction is $16,100 single, $32,200 married filing jointly and $24,150 head of household. A single filer pays 10% on the first $12,400 of taxable income, 12% up to $50,400 and 22% up to $105,700.⁴⁵

Then comes the qualified business income deduction, also called section 199A. It takes up to 20% of your business profit off your taxable income, capped at 20% of your taxable income.⁶ The 2025 tax law made it permanent, and from 2026 an owner with at least $1,000 of that income gets at least $400.⁷⁵ Above $201,750 of taxable income ($403,500 joint), limits tied to the wages you pay and the equipment you own phase in, and a one-person shop can lose much of it.⁵⁶ Your tax software or accountant applies it; you just need to know it's why the income tax line is smaller than you'd guess.

What a contractor owes for 2026: worked examples at three profit levels

These are examples, not your numbers: a single filer with no other income, the standard deduction and no credits, run through the calculator.

Two things stand out. Self-employment tax is the bigger bill at every level in the table. And the federal rate barely climbs: at $60,000 of profit, a single contractor has about $31,700 of taxable income once half the self-employment tax, the standard deduction and the QBI deduction come off, all of it in the 12% bracket or below.

A spouse's paycheck changes that. Married filing jointly with no other income, $60,000 of profit costs $10,363 in federal tax, 17.3%. If the spouse also earns $70,000 in wages, the same profit adds $13,831, 23.1%, because it now lands in the 22% bracket. The calculator has a line for those wages.

Your prices have to carry this tax. If you set your rate without it, the pricing pages for electricians, plumbers, HVAC contractors, roofers and handymen show how to build it in.

Quarterly estimated taxes: who pays, and the 2026 due dates

Nobody withholds tax from a customer's check, so the IRS wants it during the year. You generally have to make estimated payments if you expect to owe $1,000 or more when you file, after withholding and credits.⁸ From self-employment tax alone, that's about $7,100 of profit.

Those are the IRS's 2026 dates.⁹¹¹ You can skip the January payment if you file your 2026 return by February 1, 2027 and pay everything with it.⁹

Licensed this fall? Your first payment is January 15, 2027. Publication 505 says it plainly: if you first have income you owe estimated tax on after August 31, your payment is due January 15 of the next year.¹⁰ When you file, your tax software or accountant uses the annualized income method on Form 2210, Schedule AI, so your payments follow when you actually earned the money.⁹ Pay at IRS.gov/payments: Direct Pay moves it from your bank account at no cost, and your IRS online account shows what you've paid.⁸⁹

Most states want their own payments too, with their own lines and sometimes their own dates. Virginia's first is May 1, Iowa's fall at the end of the month, and Idaho and Utah take none. The state table further down has each one.

The safe harbor: the least you can pay

You avoid the penalty if what you paid during the year, withholding included, covers the smaller of 90% of this year's tax or 100% of last year's.⁸ If last year's adjusted gross income was over $150,000, it's 110% of last year's.⁹ For someone who was on a W-2 last year, that's often the easy target: last year's tax is a known number, and withholding from a job you still have counts. One owner works it this way: "I look at my past tax returns to see how much I had to pay. I take that amount divide by four and send that amount in each quarter. Except I send in extra. My work is seasonal and forth quarter in the winter time, work is slow."¹

Two more ways out. If you had no tax at all for a full 12-month 2025, you don't have to pay estimated tax for 2026.⁹ And if you still have a paycheck, or your spouse does, you can skip the quarterly payments by asking the employer to withhold more on a new Form W-4.⁸

The underpayment penalty, in plain words

The penalty is interest. The IRS works it out from how much you were short, how long it stayed unpaid and its quarterly interest rate,¹¹ which is 7% a year for October to December 2026.¹² Each quarter is figured on its own. Being $3,000 short for three months costs about $52. Owe less than $1,000 when you file and there's no penalty at all.⁸

Some owners decide it's cheaper to pay it: "I think I pay a penalty of around $100 if I remember correctly. I'd rather keep my money throughout the year to buy more tools."¹ That's a fair trade if the money is still there in April. The penalty isn't the real risk. A $12,000 bill in April with $3,000 in the account is. States run their own penalties, and some cost more: Louisiana's is 12% a year on the underpayment.²⁹

Contractor tax deductions owners miss

Every business cost you can show comes off profit, and that lowers both taxes. The pressure washer who started a bookkeeping thread on Reddit knew it: "I know I'm leaving money on the table with missed deductions, but the admin side just gets away from me."²⁰

• Your truck. For 2026 the IRS standard mileage rate is 72.5 cents a mile from January to June and 76 cents from July 1, after a mid-year increase for fuel prices.¹³ To use the rate on a truck you own, choose it in the first year the truck works for the business. Driving to customers and between jobs is business; driving from home to a regular workplace is commuting and isn't.¹⁴ Keep a log: date, where, miles.
• Tools and equipment. If you elect the de minimis safe harbor, items up to $2,500 each (or per invoice) come off in the year you buy them.¹⁴ Bigger ones are depreciated or written off at once: section 179 allows up to $2,560,000 for 2026, and the 2025 law allows 100% bonus depreciation on certain assets bought after January 19, 2025.⁵⁷ Your accountant picks the method.
• Your phone. When an expense is partly business and partly personal, you split it and deduct the business part.¹⁴ That's how the cell phone works. The basic charge for the first landline into your home isn't deductible; a second line used only for business is.¹⁵
• A home office, only if it qualifies. The space has to be used regularly and only for the business, and it counts as your principal place of business if you do your administrative work there (billing, the books, ordering supplies) and have no other fixed place where you do much of it.¹⁵ Then the simple method gives $5 a square foot for up to 300 square feet, $1,500 a year.¹⁵ The kitchen table doesn't count.
• Health insurance. If you pay for your own, the self-employed health insurance deduction takes it off your income, but not for any month you could have joined an employer's subsidized plan, your spouse's included. It lowers income tax, not self-employment tax.¹⁶
• A retirement account. A SEP IRA or a solo 401(k) (a 401(k) for an owner with no employees) puts part of the profit away before income tax. For 2026 the 401(k) employee limit is $24,500, or $32,500 from age 50, and as the employer you can add more, figured on your earnings after half the self-employment tax.¹⁷¹⁸ It's also a good home for set-aside money you turn out not to need.

One more rule: income counts whether or not a form shows up. From 2026 a business reports what it pays you for services once it reaches $2,000 in a year, and payment apps send a 1099-K only above $20,000 and 200 payments. The IRS is clear that you report all of it either way.⁵⁷

LLC or S corporation?

An LLC on its own changes nothing on your federal tax: a one-owner LLC files the same Schedule C and pays the same self-employment tax as a sole proprietor.²³ An S corporation election is what can lower it, and only past a certain profit. You become an employee of your own company, paid a salary through payroll, and profit above that salary comes out as a distribution that doesn't carry the 15.3%. Each $10,000 taken as a distribution instead of salary saves $1,530. The catch is the salary. The IRS says an S corporation "must pay reasonable compensation to a shareholder-employee in return for services that the employee provides to the corporation before non-wage distributions may be made", and it can reclassify distributions as wages.¹⁹ For an owner whose own hands earn most of the money, a reasonable salary is most of the profit. Then come the costs: a payroll service, a separate corporate return (Form 1120-S), and in New York City an S corporation pays the city's general corporation tax.³² The salary also doesn't count toward the QBI deduction.⁶ So it pays only when the profit above a fair salary for your trade is big enough to beat those costs. Ask a CPA to run your numbers before you file the election.

Bookkeeping: a separate account and a percentage on every payment

"Every year tax season comes around and I end up kicking myself," a pressure washer wrote. Receipts went missing, and business and personal buys sat on the same card.²⁰ One reply was the fix: "You should have a separate business account".²⁰ The IRS small business guide says the same: "keep a separate bank account for your business".¹⁴

Two habits do most of the work:

1. A business checking account. Every customer payment goes in, every business cost goes out. As one owner put it: "All my income goes into that account, purchases related to business come out of it."²⁰
2. A tax savings account next to it. The day a payment lands, move your percentage across, and pay the quarterly bills from there. A first-year handyman: "Every job I complete and get paid for, I put aside 30% of the total into my savings."¹ Thirty percent is more than most of the examples above need, and that's fine. Too much in that account is a refund to yourself in April.

Once a week, photograph the receipts and write down the miles. If you collect sales tax, move that out as well: tax you collect from a customer and pass to the state generally isn't your income.¹⁴

State by state: income tax, estimated payments and sales tax on construction work

Your state adds its own income tax and its own estimated payments. It also sets the rule on sales tax for materials, and that's where contractors get caught. In most of these states a contractor working on a house is the consumer of the materials: you pay sales tax at the supply house and charge your customer none, so the tax goes into your price. New Jersey, New York, Iowa, Connecticut (for rentals), Arkansas (for mechanical work), Nebraska (Option 1) and Colorado (on time-and-materials jobs) are where you may have to collect it on the bill.

A builder in Washington state describes the simple version: "I pay sales tax on any materials I buy. I don't charge sales tax per se to any client as I don't have a reseller license".²¹ In a consumer state that's the rule. In New York or New Jersey a repair still owes tax on the bill. And the rule changes at the state line, as a Connecticut contractor found: "I do work in CT, NY and a little in NJ. My accountant deals with all this."²²

The table covers work on a customer's home. Commercial jobs, rentals and tax-exempt customers can differ. The calculator has every state's 2026 brackets.

Where you're the consumer, the tax you pay on materials is part of your cost. Put it in before your markup, the way the markup page builds a price from cost.

What to do this week

1. Open the tax savings account and get your percentage from the calculator.
2. Move it on every payment from now on, and catch up on the jobs you've already been paid for this year.
3. Put January 15, 2027 on the calendar for the federal payment on this fall's profit, plus your state's date from the table.
4. Check your state's sales tax row. If you'll collect tax, register with the state before you send the next invoice.
5. Book an hour with an accountant before April, and bring the calculator.

More for new contractors

• How to find work as a new contractor: where your first customers come from, with a free first customers plan.
• Angi vs Thumbtack: should you pay for leads yet, with a free lead cost calculator.
• Google Business Profile for contractors: setup, verification and your first reviews, with a free checklist.
• Hiring your first employee: W-2 or 1099, workers comp and what a helper really costs, with a free checklist.
• Contractor insurance: what you need from day one, what it costs and what can wait, with a free checklist.
• Change order template and hidden damage clause: rot behind the wall, charge more or eat it.
• Punch list template: stop a small list holding your final payment.
• Should you pull a permit for someone else? The asks you will get, and the answers.
• When a customer won't pay, the lien deadlines and a demand letter, by state: Arkansas, Colorado, Connecticut, Idaho, Iowa, Louisiana, Massachusetts, Minnesota, Nebraska, New Jersey, New York, Utah, Virginia.

Where Deepsel fits

A spreadsheet is the right place to work the percentage out, and Deepsel isn't accounting software, so here's what it does and doesn't do at tax time. In Deepsel, each payment is recorded against its invoice with the amount, the date received and the method (card, cash, check, bank transfer, Zelle, Venmo or other), plus a check number or reference. Card payments customers make online are recorded on their own. The invoices list filters by status and issue date and shows what's outstanding and overdue. Quotes and invoices carry one shop-wide sales tax rate, applied only to the lines you mark taxable, and each one keeps the rate it was created with, which helps in a state where some jobs carry tax and others don't. What it won't do: track expenses or mileage, give you a profit-and-loss or income report, or export your payments for your accountant. The only export today is the customer list, so your business bank account stays the record of costs. The Free plan covers 30 estimates and 30 invoices a month for your whole team; Pro is $29 a month for unlimited estimates and invoices. Details are on the pricing page.

Frequently asked questions

How much should I set aside for taxes if I'm self-employed?

For 2026, about a quarter of your profit is a safe default. A single contractor with no other income owes the IRS about 17% of profit at $30,000, 20% at $60,000 and 22% at $100,000, in self-employment tax and income tax after the standard deduction and the qualified business income deduction. State income tax adds 1 to 5 points in the 13 states we cover, and more in New York City. As a share of what customers pay you it's lower: $60,000 of profit on $100,000 of sales means moving about 13% to 15% of every payment.

How much should I set aside for taxes on 1099 income?

The same as any self-employment income. A 1099-NEC from a general contractor you sub for is business income: self-employment tax of 15.3% on 92.35% of the profit, plus income tax. From 2026 a business reports payments for services once they reach $2,000 in a year, and payment apps send a 1099-K only above $20,000 and 200 payments, but you report all of your income whether a form comes or not. Set aside 17% to 22% of profit for federal tax, plus your state's share.

How much tax will I pay on $20,000 self-employed?

About $3,025 of federal tax for 2026 if you're single with no other income: $2,826 of self-employment tax and $199 of income tax. The $16,100 standard deduction and the qualified business income deduction leave only about $1,990 taxable. That's 15% of profit, before state tax.

How much tax will I pay if I earn $30,000 self-employed?

About $5,181 of federal tax for 2026, single with no other income: $4,239 of self-employment tax and $942 of income tax, 17% of profit. With state income tax it comes to about $5,500 to $6,500 in the 13 states we cover, and about $6,750 in New York City.

What is the self-employment tax rate for 2026?

15.3%: 12.4% for Social Security and 2.9% for Medicare, charged on 92.35% of your net earnings once they reach $400. The Social Security part stops at $184,500 of combined wages and self-employment earnings for 2026 ($192,300 for 2027). Above $200,000 ($250,000 married filing jointly) an extra 0.9% Medicare tax applies. Half of the self-employment tax comes off your income before income tax.

When are 2026 estimated tax payments due?

April 15, June 15 and September 15, 2026, and January 15, 2027. If your business income started after August 31, 2026, your one 2026 payment is due January 15, 2027. Most states use the same dates, but Virginia's first payment is May 1, Iowa's fall on the last day of April, June, September and January, and Idaho and Utah don't take quarterly payments.

How do you avoid the 22% tax bracket?

Mostly you don't need to. Only taxable income over $50,400 (single, 2026) is taxed at 22%, and a contractor's taxable income is far below the profit: at $60,000 of profit a single filer has about $31,700 left after half the self-employment tax, the $16,100 standard deduction and the qualified business income deduction, all of it in the 12% bracket or below. Retirement contributions and self-employed health insurance lower it further. Watch a spouse's wages, though: on a joint return they can push your profit into the 22% bracket.

Should a contractor become an S corp to save tax?

Not in the first year for most. An S corporation saves the 15.3% only on profit above a reasonable salary you pay yourself through payroll, and for an owner who does the work, that salary is most of the profit. Payroll and a second tax return eat into the savings, and the salary doesn't count toward the qualified business income deduction. Ask a CPA to run your numbers once your profit is well above what you'd pay someone to do your job.

Can I deduct health insurance premiums as a contractor?

Usually, if you're self-employed and pay them yourself: the self-employed health insurance deduction takes them off your income. Not for any month you could have joined an employer's subsidized plan, your spouse's included. It lowers your income tax but not your self-employment tax.

Is there a tax set-aside calculator for contractors?

Yes. The free calculator on this page takes your expected 2026 profit and sales, your state and your filing status, and works out self-employment tax, federal and state income tax, the share of every customer payment to move to a tax account, and the payments with their due dates for the 13 states we cover. It comes as an Excel file or a Google Sheets copy. It's an estimate, not tax advice.

Sources

1. r/HandymanBusiness, "Estimated Taxes" (October 8, 2026, posted by a first-year handyman) - the post: "Very small handyman business, first year. Accountant suggests I should look into filing estimated taxes. Not quite sure if I'm big enough to have to go through that hassle." Replies: "I also started this year. Every job I complete and get paid for, I put aside 30% of the total into my savings." (reddit.com); "I think I pay a penalty of around $100 if I remember correctly. I'd rather keep my money throughout the year to buy more tools. :)" (reddit.com); October 12, 2026: "I look at my past tax returns to see how much I had to pay. I take that amount divide by four and send that amount in each quarter. Except I send in extra. My work is seasonal and forth quarter in the winter time, work is slow." (reddit.com). Post: reddit.com. Quotes checked on the live thread November 4, 2026.
2. IRS, "Self-employment tax (Social Security and Medicare taxes)" (last reviewed or updated October 30, 2026) - "The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance)."; "For 2026, the first $184,500 of your combined wages, tips, and net earnings is subject to any combination of the social security part of self-employment tax, social security tax, or railroad retirement (tier 1) tax."; additional 0.9% Medicare tax thresholds: married filing jointly $250,000, single $200,000, head of household $200,000; "you can deduct the employer-equivalent portion of your SE tax when calculating your adjusted gross income". irs.gov, read November 4, 2026.
3. IRS, "Topic no. 554, Self-employment tax" (last reviewed or updated September 24, 2026) - "The term sole proprietor also includes the member of a single member LLC that's disregarded for federal income tax purposes"; "You usually must pay self-employment tax if you had net earnings from self-employment of $400 or more. Generally, the amount subject to self-employment tax is 92.35% of your net earnings from self-employment." irs.gov, read November 4, 2026.
4. IRS, IR-2025-103, "IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill" (October 9, 2025) - "For tax year 2026, the standard deduction increases to $32,200 for married couples filing jointly. For single taxpayers and married individuals filing separately, the standard deduction rises to $16,100 for tax year 2026, and for heads of households, the standard deduction will be $24,150."; "22% for incomes over $50,400 ($100,800 for married couples filing jointly); 12% for incomes over $12,400 ($24,800 for married couples filing jointly)." irs.gov, read November 4, 2026.
5. IRS, Revenue Procedure 2025-32 - 2026 tax rate tables for every filing status (single: 10% to $12,400, 12% to $50,400, 22% to $105,700, 24% to $201,775; head of household: 10% to $17,700, 12% to $67,450); section 4.26, qualified business income threshold for 2026 $201,750 ($403,500 married filing jointly), phase-in range to $276,750 ($553,500); section 2.12, "Section 70105 of the OBBBA amended § 199A(i) to add a minimum deduction of $400."; "a taxpayer will be required to have a minimum of $1,000 of qualified business income to be eligible for the deduction, effective for taxable years beginning after December 31, 2025."; section 179 limit for 2026 $2,560,000; section 2.15, "For payments made after December 31, 2025, the base threshold under section 6041(a) is $2,000." irs.gov, read November 4, 2026.
6. IRS, "Qualified business income deduction" (last reviewed or updated October 30, 2026) - "The deduction allows eligible taxpayers to deduct up to 20 percent of their QBI"; "The QBI Component is subject to limitations, depending on the taxpayer's taxable income which may include the type of trade or business, the amount of W-2 wages paid by the qualified trade or business, and the unadjusted basis immediately after acquisition (UBIA) of qualified property"; "The deduction is limited to the lesser of the QBI component plus the REIT/PTP component or 20 percent of the taxpayer's taxable income minus net capital gain"; QBI does not include "Amounts received as reasonable compensation from an S corporation". irs.gov, read November 4, 2026.
7. IRS, FS-2026-07, "The Working Families Tax Cuts: What gig economy workers should know" (March 2026) - "Permanent Qualified Business Income deduction: The deduction is now permanent"; "Third party settlement organizations are required to issue a Form 1099-K to the IRS and the payee if the amount of payments made during the calendar year is more than $20,000, and the total number of transactions is more than 200. Taxpayers must report all income when they file their tax return regardless of whether they receive a Form 1099-K or other information return."; "The law allows 100% bonus depreciation on certain assets acquired after Jan. 19, 2025." irs.gov, read November 4, 2026.
8. IRS, "Estimated taxes" (last reviewed or updated September 25, 2026) - "Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed."; "If you receive salaries and wages, you can avoid having to pay estimated tax by asking your employer to withhold more tax from your earnings. To do this, file a new Form W-4"; "most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller"; payments through your online account, "where you can see your payment history". irs.gov, read November 4, 2026.
9. IRS, 2026 Form 1040-ES, Estimated Tax for Individuals - payment due dates April 15, 2026, June 15, 2026, September 15, 2026 and January 15, 2027; "You don't have to make the payment due January 15, 2027, if you file your 2026 tax return by February 1, 2027, and pay the entire balance due with your return."; "If your adjusted gross income (AGI) for 2025 was more than $150,000 ($75,000 if your filing status for 2026 is married filing separately), substitute 110% for 100%"; "You don't have to pay estimated tax for 2026 if you were a U.S. citizen or resident alien for all of 2025 and you had no tax liability for the full 12-month 2025 tax year."; "If, after March 31, 2026, you have a large change in income ... you should figure the amount of your estimated tax payments by using the annualized income installment method ... file Form 2210, including Schedule AI"; "IRS Direct Pay. For online transfers directly from your checking or savings account at no cost to you". irs.gov, read November 4, 2026.
10. IRS, Publication 505 (2026), Tax Withholding and Estimated Tax (last reviewed or updated April 30, 2026) - "You don't have to make estimated tax payments until you have income on which you will owe income tax."; Table 2-1: if you first have income on which you must pay estimated tax "After Aug. 31", make a payment by "Jan. 15 next year". irs.gov, read November 4, 2026.
11. IRS, "Underpayment of estimated tax by individuals penalty" (last reviewed or updated August 20, 2026) - due dates "April 15 for income earned January 1 to March 31; June 15 for income earned April 1 to May 31; September 15 for income earned June 1 to August 31; January 15 of the following year for income earned September 1 to December 31"; "We calculate the penalty based on: The amount of the underpayment; The period when the underpayment was due and underpaid; The published quarterly interest rates for underpayments". irs.gov, read November 4, 2026.
12. IRS, IR-2026-98, "Interest rates remain the same for the fourth quarter of 2026" (August 21, 2026) - "For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily." irs.gov, read November 4, 2026.
13. IRS, "Standard mileage rates" (last reviewed or updated July 28, 2026) - "2026 (July 1 – Dec. 31): Self-employed and business: 76 cents/mile"; "2026 (Jan. 1 – June 30): 72.5". Internal Revenue Bulletin 2026-29, announcement: "This modification results from recent increases in the price of fuel. The revised standard mileage rates are: (1) Business 76 cents per mile"; they apply to expenses "on or after July 1, 2026". irs.gov and irs.gov, read November 4, 2026.
14. IRS, Publication 334 (2025), Tax Guide for Small Business (last reviewed or updated April 30, 2026) - "If you want to use the standard mileage rate for a car or truck you own, you must choose to use it in the first year the car is available for use in your business."; local transportation includes "Getting from one workplace to another" and "Visiting clients or customers"; "You can't deduct the costs of driving your car or truck between your home and your main or regular workplace. These costs are personal commuting expenses."; "If you don't have an applicable financial statement, you may use the de minimis safe harbor to deduct amounts paid for tangible property up to $2,500 per item or invoice."; "If you have an expense that is partly for business and partly personal, separate the personal part from the business part."; "You should also use a proper invoicing system and keep a separate bank account for your business."; "If you are required to collect state and local taxes imposed on the buyer and turn them over to state or local governments, you generally do not include these amounts in income." irs.gov, read November 4, 2026.
15. IRS, Publication 587 (2025), Business Use of Your Home (last reviewed or updated April 30, 2026) - "Your home office will qualify as your principal place of business if you meet the following requirements. You use it exclusively and regularly for administrative or management activities of your trade or business. You have no other fixed location where you conduct substantial administrative or management activities"; examples: "Billing customers, clients, or patients. Keeping books and records. Ordering supplies"; simplified method: "$5, the prescribed rate ... The area you use to figure your deduction is limited to 300 square feet"; "The basic local telephone service charge, including taxes, for the first telephone landline into your home is a nondeductible personal expense. However, charges for business long-distance phone calls on that line, as well as the cost of a second line into your home used exclusively for business, are deductible". irs.gov, read November 4, 2026.
16. IRS, Instructions for Form 7206 (2025), Self-Employed Health Insurance Deduction - "You can't take the deduction for any month you were eligible to participate in any employer (including your spouse's) subsidized health plan at any time during that month, even if you didn't actually participate."; "Effect on self-employment tax. You can't subtract the self-employed health insurance deduction when figuring net earnings for your self-employment tax". irs.gov, read November 4, 2026.
17. IRS, IR-2025-111, "401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500" (November 13, 2025) - "participants in most 401(k), 403(b), governmental 457 plans and the federal government's Thrift Savings Plan who are 50 and older generally can contribute up to $32,500 each year, starting in 2026." irs.gov, read November 4, 2026.
18. IRS, "One-participant 401(k) plans" (last reviewed or updated April 9, 2026) - "The business owner wears two hats in a 401(k) plan: employee and employer."; for self-employed individuals, compensation is "net earnings from self-employment after deducting both: one-half of your self-employment tax, and contributions for yourself." irs.gov, read November 4, 2026.
19. IRS, "S corporation compensation and medical insurance issues" (last reviewed or updated March 3, 2026) - "S corporations must pay reasonable compensation to a shareholder-employee in return for services that the employee provides to the corporation before non-wage distributions may be made to the shareholder-employee."; "The IRS has the authority to reclassify payments made to shareholders from non-wage distributions (which are not subject to employment taxes) to wages (which are subject to employment taxes)."; "to the extent gross receipts are generated by the shareholder's personal services, then payments to the shareholder-employee should be classified as wages". irs.gov, read November 4, 2026.
20. r/pressurewashing, "Bookkeeping Advice?" (May 17, 2025, posted by a pressure washing owner) - the post: "Every year tax season comes around and I end up kicking myself."; "I know I'm leaving money on the table with missed deductions, but the admin side just gets away from me." Replies: "You should have a separate business account" (reddit.com); "All my income goes into that account, purchases related to business come out of it." (reddit.com). Post: reddit.com. Quotes checked on the live thread November 4, 2026 (the author's account has since been deleted; the post is still up).
21. r/Contractor, "Anyone have thoughts about resellers permits, ie. wholesaling vs just paying sales tax" (reply, March 6, 2025, a builder in Washington state) - "I pay sales tax on any materials I buy. I don't charge sales tax per se to any client as I don't have a reseller license" reddit.com, quote checked November 4, 2026.
22. r/Construction, a thread on sales tax on materials (comment by the thread's author, February 28, 2025) - "I'm in CT, but I live in the border, so I do work in CT, NY and a little in NJ. My accountant deals with all this." reddit.com, quote checked November 4, 2026 (the post itself has been removed).
23. Massachusetts Department of Revenue: 2026 Form 1-ES, "Individual residents and nonresidents who expect to owe more than $400 in taxes on income not subject to withholding"; "The surtax threshold for tax year 2026 is $1,107,750" (mass.gov); "Tax Rates" (5.00%; sales and use tax 6.25%) (mass.gov); "Personal Income Tax Exemptions" (single $4,400, head of household $6,800, married filing joint $8,800) (mass.gov); "Massachusetts Sales Tax Guide for Plumbers": plumbers doing construction or repair of real property "are the consumers of tangible personal property (material) purchased by them for the performance of their contracts"; a plumber who replaces a broken faucet and separately states its price: "The sales tax is due on the price of the faucet as sold to the customer. The charge for the labor is not subject to tax." (mass.gov). All read November 4, 2026.
24. New Jersey Division of Taxation: 2026 NJ-1040-ES instructions, "you are required to make estimated tax payments if you estimate that you will owe more than $400"; Tables A and B (rates 1.4% to 10.75%); exemptions "$1,000 each" (nj.gov); Tax Topic Bulletin S&U-3, Contractors and New Jersey Taxes (Rev. 5/25), "The contractor pays the Sales Tax on the cost of materials and supplies at the time of purchase. Under the law, a contractor is not granted resale treatment for materials and supplies purchased for improving, altering, or repairing real property."; "If the contractor does not itemize the materials and the labor for a taxable job, the entire receipt is subject to tax."; Form ST-8, Certificate of Exempt Capital Improvement (nj.gov). Read November 4, 2026.
25. Minnesota Department of Revenue: "Income Tax Rates and Brackets" (2026 tables; last updated January 9, 2026) (revenue.state.mn.us); December 16, 2025 release, 2026 standard deduction $15,300 single, $30,600 married filing joint, $23,000 head of household (revenue.state.mn.us); "Estimated Tax Payments for Individuals", "You must pay estimated tax if you expect to owe $500 or more in Minnesota income tax" (revenue.state.mn.us); "General Contractors and Subcontractors" (last updated June 18, 2024), "You must pay sales and use tax on the cost of all materials, supplies, and equipment used to complete a construction contract."; "Do not itemize sales tax separately on the invoice. Do not charge sales tax on construction contracts." (revenue.state.mn.us). Read through a browser, November 4, 2026.
26. Idaho State Tax Commission: "Individual Income Tax Rate Schedule" (2025: first $4,811 at 0.0%, then 5.3%; married $9,622) (tax.idaho.gov); 2026 withholding table EPB00744 (July 23, 2026), "5.3% of the amount over" (tax.idaho.gov); "Withholding – Help for the self-employed and retired", "Idaho doesn't require estimated tax payments from individuals, but you can make payments at any time using either of these methods: Form 51 ... Quick Pay" (tax.idaho.gov); "Contractors Working in Idaho", "Idaho sales tax law says contractors are the consumers (end users) of all the goods they use."; "when they sell items or materials they don't install, they are retailers and need to collect sales tax from their customers" (tax.idaho.gov). Read November 4, 2026.
27. Virginia Tax: Form 760ES 2026, "For taxable years beginning on and after January 1, 2026, if your Virginia income tax liability, after subtracting income tax withheld and any allowable credits, is expected to be more than $1,000, then you must make estimated tax payments"; due dates May 1, June 15, September 15, 2026 and January 15, 2027; rates 2%, 3%, 5%, 5.75% over $17,000; personal exemptions "X $930" (tax.virginia.gov); legislative summary 26-82 (2026 Appropriation Act raises the standard deduction from $8,750 to $9,200 single and from $17,500 to $18,400 joint from 2027) (tax.virginia.gov); Tax Bulletin 17-8 (June 29, 2017), contractors "must pay the tax on the purchase price of the materials and not charge sales tax to their customers" (tax.virginia.gov); 23VAC10-210-410, "The contractor will take the amount of the tax into consideration in submitting bids." (law.lis.virginia.gov). Read November 4, 2026.
28. Iowa Department of Revenue: "IDR Announces 2026 Individual Income Tax and Interest Rates" (October 21, 2025), "In 2026, all levels of taxable individual income will be subject to this rate" (3.8%) (revenue.iowa.gov); "Estimated Income Tax Payments", "Taxpayers who estimate they will owe $200 ( $1,000 for tax years beginning on or after January 1, 2026) or more"; installments April 30, June 30, September 30, January 31, "If a due date ends on a weekend or holiday ... substitute the next regular business day" (revenue.iowa.gov); 2026 IA 1040ES, worksheet line 1 "Federal taxable income" (revenue.iowa.gov); "Iowa Contractors Guide", "When a contractor performs new construction, reconstruction, alteration, expansion, or remodeling, the contractor must pay sales or use tax on the building materials and supplies at the time they are purchased and does not collect any tax from the customer."; "In all other instances, such as repairs or installations that do not rise to the level of new construction, reconstruction, alteration, expansion, or remodeling, the contractor charges the customer sales tax on the sales price of the building materials and supplies used in completing the work." (tax.iowa.gov). Read November 4, 2026.
29. Louisiana Department of Revenue: "Individual Income Tax", "For taxable years beginning on or after January 1, 2025, income tax is computed at a a flat rate of 3%"; "The penalty is 12 percent annually of the underpayment amount for the period of the underpayment." (revenue.louisiana.gov); 2026 IT-540ES instructions, estimated standard deduction single $12,875, married filing joint and head of household $25,750 (ldr.la.gov); "Declaration of Estimated Income Taxes", required if tax "is expected to exceed $1,000 for single filers and $2,000 for joint filers" (revenue.louisiana.gov); LAC 61:I.4372, sales to contractors for work on immovable property "are presumed to be sales to consumers or users, not sales for resale" (ldr.la.gov); resale certificate FAQ, "It cannot be used to make tax-exempt purchases of items that your business will use or consume." (revenue.louisiana.gov). Read November 4, 2026.
30. Connecticut Department of Revenue Services: Form CT-1040ES (Rev. 01/26), estimated payments if your tax after withholding "is $1,000 or more"; Table A, Personal Exemptions for 2026; Table B, Initial Tax Calculation for 2026 (portal.ct.gov); IP 2018(2), Building Contractors' Guide to Sales and Use Taxes, contractors "must generally: 1. Pay sales and use tax on materials, supplies, and equipment used in their construction contracts; and 2. Charge and remit sales tax on their taxable services"; no tax on services "when installing a system in: New construction; Owner-occupied residential property" (one to three dwelling units); repair of tangible personal property is taxable (portal.ct.gov). Read November 4, 2026.
31. Nebraska Department of Revenue: Form 1040N-ES for 2026 (Rev. 11-2025), estimated payments if tax "is expected to exceed their income tax withholding and other credits by $500 or more"; standard deduction single $8,850, married filing jointly $17,700, head of household $12,950; 2026 rate schedule (revenue.nebraska.gov); Reg 1-017, "Option 1 contractor means a contractor who has elected to be taxed as a retailer of building materials with a tax-exempt inventory or a contractor who has not made an election."; "Option 1 contractors will not normally collect sales tax on separately stated labor charges"; Options 2 and 3, taxed "as the consumer of building materials" (revenue.nebraska.gov). Read November 4, 2026.
32. New York State Department of Taxation and Finance: IT-2105-I (2026), "you must pay estimated income tax if you expect to owe ... at least $300 of either New York State, New York City, or Yonkers tax for 2026"; standard deduction single $8,000, married filing jointly $16,050; state and city rate schedules; MCTMT ".60% (.0060) of an individual's net earnings from self-employment allocated to Zone 1 of the MCTD, if such earnings exceed $150,000" (tax.ny.gov); TB-ST-104, Capital Improvements, "a contractor should get a properly completed Form ST-124, Certificate of Capital Improvement, from the customer ... and should not collect sales tax" (tax.ny.gov); TB-ST-129 (March 17, 2016), "A contractor or subcontractor must charge sales tax to its customers if the work performed is repair, maintenance, or installation work." (tax.ny.gov). NYC Department of Finance, "Unincorporated Business Tax": "A 4% tax rate is charged for taxable income allocated to New York City."; "A liability of $3,400 or less is allowed a credit for the full amount of the tax."; "S Corps" are subject to the general corporation tax (nyc.gov). Read November 4, 2026.
33. Colorado Department of Revenue: DR 0104EP (2026), "you must pay estimated tax if you expect to owe more than $1,000 in net tax for 2026"; required payment the smaller of "70% of the actual net Colorado tax liability" or 100% (110%) of the preceding year's; "Estimated 2026 Colorado income tax" is "4.4% of line 1" (tax.colorado.gov); FYI Sales 6 (03/20), lump-sum contracts: "the contractor is treated as the consumer of all construction and building materials"; time-and-materials: "the contractor must collect sales tax from its customer on the marked up price of the materials"; non-building materials include furnaces; home rule cities administer their own sales and use taxes (tax.colorado.gov). Read November 4, 2026.
34. Utah State Tax Commission: 2026 TC-40 draft (October 21, 2026), "Utah tax - multiply line 7 by 4.45%"; taxpayer tax credit phase-out from $18,696 single, $28,045 head of household, $37,392 married filing jointly, at 1.3% (tax.utah.gov); "Utah does not require quarterly estimated individual income tax payments." (tax.utah.gov); "Extensions and prepayments": prepay by the original due date 90 percent of the current year's tax or 100 percent of the prior year's (incometax.utah.gov); Publication 42 (Rev. 07/26), "The person who converts the property to real property must pay tax on the purchase of the material."; the contractor may not "show the tax owed on the contractor's purchase of construction materials (or any amount that appears to be tax) as a separate item on a customer invoice or contract" (tax.utah.gov). Read November 4, 2026.
35. Arkansas Department of Finance and Administration: AR1000ES for 2026, a declaration is required "if the taxpayer can reasonably expect their estimated tax to be more than one thousand dollars ($1,000)"; "standard deduction of $2,470 per taxpayer"; 2026 tax rate schedule 0%, 2.0%, 3.0%, 3.4%, 3.7% (dfa.arkansas.gov); Rule GR-21, "All contractors are deemed to be consumers or users of all tangible personal property including materials"; not taxable: work on "wiring, breakers, breaker boxes, electrical switches and receptacles, light fixtures, pipes, plumbing fixtures"; taxable: "initial installation in existing structures and the repair or replacement of dishwashers, stoves, ovens, refrigerators, heating and air conditioning units, garbage disposals, water heaters, ceiling fans, garage door motors" (law.cornell.edu); sales and use tax FAQ, "The contractor must pay the tax on the materials and may pass the tax on as part of the cost of the contract." (dfa.arkansas.gov). Read November 4, 2026.
36. Social Security Administration, "Contribution and Benefit Base" - "For earnings in 2027, this base is $192,300." ssa.gov, read November 4, 2026.