Self-Employment Tax Calculator

What you owe on freelance, contract or 1099 income in 2026: the 15.3% self-employment tax for Social Security and Medicare, federal income tax after the 20% qualified business income deduction, and how much to pay each quarter so April holds no surprise.

Updated Oct 1, 20262026 IRS figures, Rev. Proc. 2025-32Runs in your browser, nothing is sent

Your business

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your contribution
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premiums you pay
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Your household

yours or joint
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$
optional, your rate
%
Total tax on your 2026 income
$0

Quarterly payment
$0
Apr 15, Jun 15, Sep 15, Jan 15
Self-employment tax
$0
QBI deduction
$0
Set aside
0%
of every dollar of profit

How it is worked out

Tax as your profit grows

Ways to pay less

What self-employment tax is

An employee pays 7.65% of wages for Social Security and Medicare and the employer pays another 7.65%. When you work for yourself you pay both halves: 15.3%, made up of 12.4% Social Security and 2.9% Medicare. It applies to 92.35% of your net profit, which mirrors the fact that employees are not taxed on the employer's share.

  • The 12.4% Social Security part stops at the 2026 wage base of $184,500, counting any W-2 wages first.
  • The 2.9% Medicare part has no cap, and an extra 0.9% applies above $200,000 ($250,000 joint) of combined wages and self-employment income.
  • No self-employment tax is due if net earnings are under $400.

Half of the self-employment tax is deductible from your income, which lowers income tax but not the self-employment tax itself.

The 20% QBI deduction

Most sole proprietors can deduct 20% of their qualified business income, which is profit after the half-SE-tax deduction, self-employed health insurance and retirement contributions. The deduction cannot exceed 20% of taxable income before it. From 2026 there is also a minimum $400 deduction if you have at least $1,000 of QBI from a business you actively run.

Above taxable income of $201,750 ($403,500 joint) the deduction starts to be limited. For specified service businesses (law, medicine, consulting, finance, performing arts and similar) it phases out completely by $276,750 ($553,500 joint). Other businesses keep it only to the extent they pay W-2 wages or own business property. This calculator assumes a one-person business with no employees, so the deduction phases out over that range either way.

A worked example

A single freelancer with $80,000 of profit and no other income: self-employment tax is $80,000 × 92.35% × 15.3% = $11,303.64. Half of it, $5,651.82, is deducted, giving an adjusted gross income of $74,348.18 and $58,248.18 after the standard deduction. The QBI deduction is the smaller of 20% × $74,348.18 and 20% × $58,248.18: $11,649.64. Taxable income is $46,598.54 and income tax is $5,343.82. Total federal tax: $16,647.46, about 20.8% of profit, or $4,161.87 a quarter.

Quarterly estimated payments

Nobody withholds tax from 1099 income, so the IRS expects you to pay during the year if you will owe $1,000 or more. The 2026 due dates are April 15, June 15 and September 15, 2026, and January 15, 2027. You avoid an underpayment penalty if you pay at least 90% of this year's tax, or 100% of last year's tax (110% if last year's AGI was over $150,000), spread evenly. If you also have a job, raising withholding on your W-4 counts as paid evenly through the year.

Legitimate ways to lower it

Track every business expense: equipment, software, a home office used regularly and only for work, business mileage (72.5 cents a mile for January to June 2026, raised to 76 cents from July 1), professional fees and a share of your phone and internet. Contributions to a SEP-IRA or solo 401(k) cut income tax, and self-employed health insurance premiums are deductible above the line. Above roughly $80,000 to $100,000 of steady profit, an S corporation election can reduce self-employment tax by splitting income into a reasonable salary and distributions; it adds payroll and accounting costs, so get advice first.

Questions people ask

How much should I set aside for taxes as a freelancer?

For federal tax, most freelancers with $50,000 to $150,000 of profit need 20% to 30% of profit, plus state income tax. The "set aside" figure above gives your exact share.

Do I pay self-employment tax on top of income tax?

Yes. Self-employment tax replaces the Social Security and Medicare that an employer would withhold, and income tax is charged separately. Half of the self-employment tax is deductible for income tax.

Is self-employment tax the same as the 15.3% on everything?

Not quite: it applies to 92.35% of net profit, the 12.4% part stops at $184,500, and expenses come off first. On $80,000 of profit it is $11,303.64, or 14.1%.

What happens if I miss a quarterly payment?

The IRS charges an underpayment penalty, calculated like interest on the late amount (7% a year for most of 2026, 6% from April to June). You can catch up with a larger later payment; the penalty stops growing once paid.

Can I deduct my health insurance?

Yes, if you are not eligible for an employer plan through your own or your spouse's job, premiums for you, your spouse and dependents are deductible from income, up to your net self-employment profit. They do not reduce self-employment tax.

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Sources: IRS Rev. Proc. 2025-32 (2026 brackets, QBI thresholds) · IRS, self-employment tax · SSA, 2026 wage base · IRS, estimated taxes · IRS, standard mileage rates.