Self-Employment Tax Calculator
Freelance and 1099 income has no employer withholding. Work out what to set aside before the IRS asks for it.
Software, mileage, home office, equipment
$19,867 a year · 23.9% of net profit
- Net profit$83,000
- Self-employment tax (15.3%)−$11,728
- Federal income tax−$8,140
- Texas income taxNone
- Half of SE tax deducted+$5,864
- Keep after tax$63,133
Self-employment tax is 15.3% because you pay both halves of Social Security and Medicare. Only 92.35% of your profit is subject to it, and half of what you pay is deductible against income tax — both are already applied above.
How to Use the Self-Employment Tax Calculator
Enter your 1099 or business income
Total gross receipts from freelance, contract or gig work for the year, before expenses.
Subtract your business expenses
Software, mileage, home office, equipment and professional fees. These reduce both self-employment tax and income tax, so leaving them out overstates what you owe.
Add any W-2 income
If you also have a salaried job, its wages use part of the Social Security cap first, which can lower the self-employment tax on your freelance profit.
Read the quarterly number
The headline figure is what to move into a separate account each quarter. The four deadlines are listed underneath.
Pro tip: Your data is processed entirely in your browser. Nothing is sent to any server, ensuring complete privacy.
What self-employment tax actually is
When you work for someone else, your payslip shows 6.2% going to Social Security and 1.45% to Medicare. What it does not show is that your employer pays the same amounts again on your behalf. Working for yourself, there is no employer to pay the other half — so you pay both. That is the 15.3% self-employment tax, and it is why a $90,000 freelance year feels heavier than a $90,000 salary.
Two adjustments soften it, and both are applied above. Only 92.35% of your net profit is subject to the tax, which roughly mirrors the employer-side deduction a company would take. And half of the self-employment tax you pay is deductible against your income tax, lowering your adjusted gross income before the brackets apply.
The bigger practical difference is timing. An employee’s tax leaves before they ever see the money. A contractor receives the full invoice amount and has to hold some back themselves, in four instalments, on a schedule the IRS sets. Miss those and an underpayment penalty can apply even if you pay in full at filing.
This is also why expense tracking matters far more for the self-employed. A deductible dollar saves your income-tax rate plus 15.3%, so a $5,000 home office and equipment deduction is worth well over $1,500 to most freelancers. Enter your real expenses above rather than leaving the field at zero.
Frequently asked questions
How much tax do I pay on 1099 income?
Two taxes stack. Self-employment tax is 15.3% of 92.35% of your net profit — that is both halves of Social Security and Medicare, because you are employer and employee at once. On top sits federal income tax at your ordinary bracket, plus state tax if your state charges any. Most contractors should set aside 25–35% of profit.
Why is self-employment tax 15.3%?
An employee pays 6.2% Social Security and 1.45% Medicare, and their employer quietly pays the same again. Working for yourself, you owe both halves: 12.4% plus 2.9% equals 15.3%. The offset is that only 92.35% of profit is subject to it, and half of what you pay is deductible against income tax.
What are the quarterly tax deadlines?
For the 2026 tax year, estimated payments are due 15 April, 15 June, 15 September and 15 January of the following year. Missing them can trigger an underpayment penalty even if you settle in full at filing.
Do I owe self-employment tax on a side hustle?
Yes, once net earnings from self-employment reach $400 in a year. That threshold is low and catches most freelance, gig and contract work. It applies whether or not you received a 1099-NEC from the payer.
How do business expenses reduce my tax?
Expenses come off before both taxes are calculated, so every deductible dollar saves you your income-tax rate plus 15.3%. Software, mileage, a home office, equipment and professional fees are the usual ones. This is why tracking expenses matters far more for the self-employed than for employees.
What if I also have a W-2 job?
Your W-2 wages use up part of the Social Security wage base first, so the 12.4% portion of self-employment tax may be reduced or eliminated on your freelance income. Medicare has no cap, so its 2.9% always applies. Enter your W-2 income above and the calculator handles it.
Related Tools
Calculate compound interest and see your investment grow over time. Choose daily, monthly, quarterly, or yearly compounding. Includes growth charts and amortization tables.
Calculate your monthly mortgage payments, total interest, and view full amortization schedule with our free mortgage calculator. No signup required.
Calculate monthly loan payments, total interest, and payoff dates for personal loans, auto loans, and more.
Calculate tips and split bills easily. Choose tip percentage, split between people, and see totals instantly.