Finance
Self-Employment Tax Calculator
Estimate 2026 self-employment tax, federal income tax, and state income tax on your net profit in any state, then see the quarterly estimated payment to send the IRS. Free, instant, no signup.
More options
Enter your net profit — revenue minus business expenses — to see how much to set aside and what to pay each quarter.
A 2026 planning estimate using the standard deduction, not a tax return: it ignores credits, itemized deductions, and AMT. All calculations happen in your browser. Nothing is stored.
✳ Free · No signup · Runs in your browser — we never store your numbers
Small business guide
What this tool helps you do
Use this free self-employment tax calculator to answer the question every freelancer, contractor, and sole proprietor asks once the 1099s start arriving: how much of this money is actually mine? Enter your net profit and your state, and it estimates your 2026 self-employment tax, federal income tax, and state income tax together, then turns the total into a set-aside percentage and a quarterly estimated payment.
Most self-employment tax calculators stop at the 15.3% Social Security and Medicare tax. That is only part of the bill. The same profit is also subject to federal income tax (after two deductions that most people forget about) and, in 41 states and DC, state income tax. This calculator runs all three with 2026 IRS and state figures, so the number you set aside is the number you will actually owe.
How to use this tool
- 1
Pick your filing status and your state. If you moved during the year, use the state where you lived and worked for most of it, then check the state's part-year rules.
- 2
Enter your net self-employment profit for 2026: business revenue minus business expenses, the number that ends up on Schedule C line 31. If you are partway through the year, enter your best full-year projection.
- 3
Add other household income, such as W-2 wages from a day job, your spouse's pay if you file jointly, or interest. The calculator uses it to find your tax bracket, then shows only the extra tax your self-employment income adds.
- 4
Open "More options" to include SEP-IRA or solo 401(k) contributions and self-employed health insurance premiums, a local income tax rate (for example, a city earnings tax), or to flag a service business for the QBI deduction rules.
- 5
Read the set-aside percentage first: move that share of every client payment into a separate tax savings account. Then pay the quarterly amount by each IRS due date with Form 1040-ES or IRS Direct Pay. Your state has its own estimated payment voucher and schedule. See the IRS estimated taxes guide.
Formula
Self-employment tax = net profit × 92.35% × 15.3% (12.4% Social Security on earnings up to $184,500 + 2.9% Medicare on all earnings, + 0.9% additional Medicare above $200,000 single or $250,000 joint). Federal taxable income = net profit + other income − half of SE tax − retirement/health deductions − standard deduction − QBI deduction. Total tax = SE tax + federal income tax on that taxable income + state income tax + local tax. Quarterly payment = the tax your self-employment income adds ÷ 4.
- The 92.35% factor stands in for the employer half of payroll tax that a W-2 employer would have paid. Employees never pay 15.3% on their full wage, and the self-employed don't either.
- Half of your self-employment tax is deductible on Form 1040, Schedule 1. It lowers income tax, not the SE tax itself.
- The 2026 standard deduction is $16,100 single, $32,200 married filing jointly, and $24,150 head of household.
- The qualified business income (QBI) deduction is 20% of business profit (after the half-SE-tax and retirement deductions), capped at 20% of taxable income. OBBBA made it permanent and added a $400 minimum for at least $1,000 of active business income. Above $201,750 single / $403,500 joint, it phases out over the next $75,000 / $150,000 for a sole proprietor with no employees.
- State tax uses each state's 2026 brackets, standard deduction, and personal exemptions or credits. Most states start from federal AGI. Colorado, Iowa, Montana, and North Dakota start from federal taxable income instead.
- State-specific rules that change a sole proprietor's bill are built in, such as Ohio's $250,000 business income deduction, Alabama's and Missouri's deductions for federal tax paid, New York's high-income recapture, Maryland's mandatory county tax, and Pennsylvania's and New Jersey's refusal of the half-SE-tax deduction.
Examples
Full-time freelancer in Texas
A single freelance designer in Texas expects $60,000 of net profit in 2026 and has no other income.
Inputs
- Filing status: Single
- State: Texas (no state income tax)
- Net profit: $60,000
Result
Self-employment tax is $8,477.73 and federal income tax is $3,559.47, for $12,037.20 in total. That is about 20.1% of profit, or $3,009.30 per quarter.
The QBI deduction ($7,932) keeps federal income tax low here. Most of the bill is self-employment tax, which no deduction reduces, so setting aside only "your tax bracket" (12%) would leave you thousands short in April.
Side business on top of a day job
A single employee earns $80,000 in W-2 wages and makes $20,000 of net profit from a weekend photography business.
Inputs
- Filing status: Single
- Net profit: $20,000
- Other income: $80,000
Result
The side income adds $6,097.23 of tax: $2,825.91 of SE tax plus extra federal income tax in the 22% bracket. That is 30.5% of the side profit, or about $1,524 per quarter.
Side income is taxed on top of your salary, so it lands in a higher bracket than the same profit would on its own. Instead of quarterly payments, you can raise the withholding on your W-2 job with a new Form W-4. The IRS treats withholding as paid evenly through the year.
Freelance developer in California
A single freelance developer in Los Angeles expects $90,000 of net profit in 2026 and has no other income.
Inputs
- Filing status: Single
- State: California
- Net profit: $90,000
Result
Self-employment tax is $12,716.60, federal income tax is $6,599.34, and California income tax is $3,389.54, for $22,705.47 in total. That is about 25.2% of profit, or $5,676.37 per quarter on the federal schedule.
California does not allow the federal QBI deduction, so state tax is computed on more income than federal tax is. California also front-loads its own estimated payments: 30% in April, 40% in June, nothing in September, and 30% in January. If the business is an LLC, add the $800 minimum franchise tax, which is due even in a loss year.
Married consultant using a SEP-IRA
A married consultant filing jointly earns $120,000 of net profit. The spouse has no income. They compare no retirement contribution with a $20,000 SEP-IRA contribution.
Inputs
- Filing status: Married filing jointly
- Net profit: $120,000
- Retirement + health deductions: $0, then $20,000
Result
Without the SEP, total tax is $24,074.40 (20.1%). With the $20,000 contribution, it falls to $22,154.40 (18.5%), a $1,920 saving, before any state tax.
Retirement contributions cut income tax but not self-employment tax, which stays at $16,955 either way. A contribution also shrinks the QBI deduction, so the saving is smaller than "20,000 × your bracket."
Key terms
Net self-employment profit
Business revenue minus ordinary and necessary business expenses: Schedule C line 31 for sole proprietors and single-member LLCs. Tax is owed on profit, not on revenue.
Self-employment tax
The Social Security and Medicare tax for people who work for themselves: 15.3% of 92.35% of net profit, reported on Schedule SE. It is owed even when you owe no income tax, once net earnings reach $400.
Social Security wage base
The cap on earnings subject to the 12.4% Social Security portion: $184,500 in 2026. Medicare's 2.9% has no cap.
QBI deduction (Section 199A)
A deduction of up to 20% of qualified business income for owners of pass-through businesses. It reduces income tax only and phases out at higher incomes, faster for specified service businesses such as consulting, law, health, and accounting.
Estimated tax payments
Quarterly payments self-employed people send the IRS (Form 1040-ES) and most states because no employer withholds tax for them. For 2026 the federal due dates are April 15, June 15, and September 15, 2026, and January 15, 2027.
Safe harbor
You avoid the federal underpayment penalty if your 2026 payments and withholding cover at least 90% of your 2026 tax or 100% of your 2025 tax (110% if your 2025 AGI was over $150,000).
How to interpret the result
Use the set-aside percentage on every payment
The percentage is the share of each dollar of profit that belongs to the IRS and your state. Move it into a separate savings account every time a client pays, not once a quarter. If your expenses are uneven, apply it to the profit you have earned so far, not to gross deposits.
Why the quarterly payment covers only self-employment income
If you also have a W-2 job, your employer already withholds for those wages. The calculator separates the tax your self-employment income adds, which is the gap you need to cover with estimated payments or extra withholding. The "Total household tax" line shows the full bill for context.
State tax can swing your number by thousands
On $100,000 of single-filer profit, the 2026 estimate is $22,365 in Texas or Florida, about $26,600 in California or New Jersey, $26,800 in New York (before New York City's own tax), and about $29,000 in Oregon or Maryland (including Maryland's county tax). That is a $4,000–$7,000 a year swing from state tax alone. Ohio is a surprise: its $250,000 business income deduction means most sole proprietors owe no Ohio income tax on business profit, though city taxes still apply. Check the state notes under the calculator for business taxes that apply to sole proprietors, such as Washington's B&O tax or Hawaii's general excise tax.
When to talk to an accountant
Consider professional help if your profit is above roughly $100,000 (an S corporation election may lower self-employment tax), you have employees, you sold business assets, or you work in several states. This calculator gives a planning estimate. It does not file a return or replace a tax professional.
Common mistakes
- Setting aside only your income tax bracket. A 12% or 22% bracket ignores the 15.3% self-employment tax, which is usually the larger bill for profits under about $100,000.
- Calculating tax on revenue instead of profit. Every legitimate business expense, such as software, equipment, mileage, a home office, or contractor costs, lowers both SE tax and income tax.
- Forgetting state estimated payments. Most states with an income tax expect their own quarterly payments on a schedule that may differ from the IRS's.
- Skipping the January 15 payment. The fourth-quarter payment is due in the following year and is the one people miss most often.
- Treating an LLC as a separate taxpayer. A single-member LLC is taxed exactly like a sole proprietorship unless it elects S or C corporation status.
- Assuming a loss year is tax-free everywhere. Some states tax gross receipts or charge LLC fees even when you have no profit, such as California's $800 minimum franchise tax.
Frequently asked questions
How much should I set aside for taxes if I'm self-employed?+
For most US freelancers and sole proprietors, 20–30% of net profit covers federal and state tax. It is closer to 20% in states with no income tax and lower incomes, and closer to 30% or more with high profits, a high-tax state, or a W-2 job that pushes your side income into a higher bracket. Enter your numbers above to get your own percentage instead of a rule of thumb.
What is the self-employment tax rate for 2026?+
15.3% of 92.35% of net profit: 12.4% for Social Security on combined earnings up to $184,500 and 2.9% for Medicare on everything. Earnings above $200,000 ($250,000 for joint filers) owe an extra 0.9% Medicare tax. The effective SE rate on profit is about 14.13%.
Is this a 1099 tax calculator?+
Yes. Income reported on a 1099-NEC or 1099-K is self-employment income, taxed the same way as any other Schedule C profit. Add up your 1099 income plus any unreported self-employment income, subtract business expenses, and enter the net profit.
Do I pay self-employment tax if I have an LLC?+
A single-member LLC is a "disregarded entity" for federal tax: its profit goes on your Schedule C and owes self-employment tax just like a sole proprietorship. An LLC that elects S corporation status pays you a salary through payroll and passes the remaining profit through without SE tax, which can save money above roughly $80,000–$100,000 of profit, at the cost of payroll and extra filings.
Do I have to make quarterly estimated tax payments?+
If you expect to owe $1,000 or more in federal tax for 2026 after withholding and credits, the IRS expects quarterly payments. Missing them triggers an underpayment penalty, charged like interest at a rate the IRS resets every quarter, unless you meet a safe harbor: paying 100% of last year's tax (110% above $150,000 AGI) or 90% of this year's.
Which states have no income tax on self-employment income?+
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not tax wage or self-employment income. Some have business taxes instead: Washington's B&O tax is on gross receipts, and New Hampshire has business profits and enterprise taxes above certain thresholds.
Does this calculator include local income taxes?+
Only if you add a rate. Cities and counties in states such as New York (NYC), Ohio, Pennsylvania, Maryland, Michigan, Kentucky, Indiana, and Missouri (Kansas City, St. Louis) levy local income or earnings taxes. Enter your local rate under "More options" and the calculator applies it to your net profit.
What does the calculator leave out?+
It is a planning estimate, not a return. It uses the standard deduction and ignores tax credits (child tax credit, EITC, education credits), itemized deductions, capital gains rates, the alternative minimum tax, and some state-specific credits and phase-outs. It also applies the full Social Security wage base to your self-employment income. If you also earn W-2 wages above $184,500, your actual SE tax will be lower.