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How to use the Self-Employment Tax Calculator
- 1Enter your business income and deductible expenses.
- 2Add any W-2 wages and choose your filing status.
- 3See your self-employment tax, income tax and quarterly payments.
How self-employment tax works
Employees split Social Security and Medicare with their employer; when you work for yourself you pay both halves: 15.3% (12.4% Social Security plus 2.9% Medicare). It applies to 92.35% of your net profit, and the Social Security part stops at the 2026 wage base of $184,500 (including any W-2 wages). An extra 0.9% Medicare tax applies above $200,000 ($250,000 married).
You can deduct half of your self-employment tax when working out income tax, and most sole proprietors can also deduct up to 20% of their qualified business income (QBI).
Quarterly estimated taxes
No one withholds tax from 1099 income, so the IRS expects estimated payments if you'll owe $1,000 or more. Payments are due around April 15, June 15, September 15 and January 15. Paying at least 100% of last year's tax (110% if your income was over $150,000) through the year avoids underpayment penalties.
Sources & review
Figures last checked in October 2026 against the official sources below. Schedule SE (15.3% on 92.35% of profit), half-SE deduction, simplified 20% QBI deduction and 2026 brackets.
Results are estimates for general information, not financial, tax or legal advice. How we check our tools
Frequently asked questions
How much should I set aside for taxes as a freelancer?
Often 25–30% of profit covers federal self-employment and income tax for middle incomes; add your state's income tax. The calculator shows the exact federal share for your numbers.
Do I pay self-employment tax on a small side income?
Yes, once your net earnings from self-employment reach $400 for the year.
What expenses can I deduct?
Ordinary and necessary business costs: equipment, software, a home office used regularly and exclusively for work, business mileage, professional fees, and part of your phone and internet.