2026 federal planning estimate
Prop Firm & Futures Tax Calculator
Estimate federal tax on contractor prop-firm payouts, personal Section 1256 futures profits, or both.
Your trading numbers
Only eligible expenses for an existing contractor business; startup/evaluation fees need review.
Your own W-2 box 3 wages, not your spouse’s; other self-employment income is not modeled.
Use your expected bracket including other income. A single rate does not model crossing brackets.
No email required. Calculator entries are not submitted or saved.
Estimated federal tax on trading income
$16,395
Marginal-rate estimate · not your total return or balance due
- Prop-firm federal income tax
- $10,037
- Regular self-employment tax
- $6,358
- Section 1256 federal income tax
- $0
- Illustrative quarterly reserve
- $4,099
- Profit after modeled federal tax
- $28,605
Quarterly reserve is tax ÷ 4, not an IRS required payment. Withholding, prior-year safe harbors and uneven income change actual payments.
Start Basic IntakeWhat this estimate includes—and leaves out
Prop-firm mode assumes sole-proprietor independent-contractor income on Schedule C. Your contract and actual facts determine classification; a 1099-NEC alone does not.
Regular self-employment tax uses 92.35% of net profit, 12.4% Social Security up to the remaining 2026 $184,500 wage base, and 2.9% Medicare. Half of that tax reduces the modeled ordinary income.
Personal Section 1256 gains are split 60% long-term and 40% short-term. They are not modeled as self-employment income.
Not included: state/local tax, standard or itemized deductions, QBI, tax credits, Additional Medicare Tax, 3.8% net investment income tax, loss carryovers/carrybacks, capital-gain stacking, entity payroll or other business income. Higher-income estimates may be understated.
This is educational planning, not tax advice or a filing calculation. Use a full return projection to set payments.