Self-Employed Tax Calculator
Estimate what a freelancer or 1099 contractor owes, and how much to set aside each quarter.
Estimate only. QBI eligibility has income limits and special rules for some professions. State tax is approximate. Other income, credits and health insurance deductions are not included.
What is self-employment tax?
Employees split Social Security and Medicare tax with their employer. If you work for yourself you pay both halves: 15.3% (12.4% Social Security up to the $184,500 wage base, plus 2.9% Medicare). It is calculated on 92.35% of your net profit and reported on Schedule SE. Half of it is deductible when working out your income tax.
Example
A freelancer with $60,000 net profit pays about $8,478 in self-employment tax. After deducting half of that and the $16,100 standard deduction, taxable income is about $39,661 and federal income tax is about $4,511. That is roughly $13,000 in federal tax before any state tax, or around 21.6% of profit. Compare this with a W-2 paycheck, where the employer pays half of the payroll tax.
Quarterly estimated payments
Self-employed people usually pay tax during the year through estimated payments, normally due in April, June, September and January. The calculator shows a rough quarter of your annual total. A simple habit is to move a fixed percentage of every payment you receive into a separate savings account.
FAQ
Do I owe self-employment tax on small earnings?
Generally yes once net self-employment earnings reach $400 in a year.
Is the result my final tax bill?
No. Other income, credits, retirement contributions and local taxes change the total. Use it for planning.