Self-Employment Tax Calculator
Calculate your SE tax, income tax, and quarterly estimated payments for 1099/freelance income.
Net after all taxes
$60,442
28.9% effective rate
Quarterly estimate
$6,140
Due Apr 15, Jun 15, Sep 15, Jan 15
Based on 2026 SE tax rates and federal brackets. Does not account for QBI deduction, estimated tax safe harbor, or state-specific SE rules.
How self-employment tax is calculated
Self-employed individuals — freelancers, independent contractors, sole proprietors, and gig workers — pay both the employer and employee portions of FICA taxes. W-2 employees split FICA 50/50 with their employer, but when you're self-employed, you're both.
The calculation follows these steps:
- Calculate net self-employment income: Gross 1099 revenue minus ordinary business expenses (home office, supplies, software, mileage, etc.)
- Apply the 92.35% factor: Multiply net income by 0.9235 to get the SE tax base. This is equivalent to the employer-share deduction W-2 workers get automatically.
- Social Security tax: 12.4% on the first $184,500 of SE tax base. Income above this cap is exempt from SS tax.
- Medicare tax: 2.9% on all SE income, plus an additional 0.9% on income above $200,000 (single) or $250,000 (married filing jointly).
- Deduct half: You can deduct 50% of your SE tax from your adjusted gross income, which reduces your federal income tax.
- Quarterly payments: Total estimated SE tax + income tax, divided by 4. Due dates: April 15, June 15, September 15, and January 15.
Example: $100,000 freelance income
Here's how self-employment tax works on $100,000 net income (single filer, no state tax):
| Net self-employment income | $100,000 |
| SE tax base (× 92.35%) | $92,350 |
| Social Security (12.4%) | $11,451 |
| Medicare (2.9%) | $2,678 |
| Total SE tax | $14,130 |
| Deductible half (reduces AGI) | −$7,065 |
| Federal income tax (on adjusted income) | ~$12,568 |
| Total tax burden | ~$26,698 |
| Quarterly estimated payment | ~$6,675 |
On $100,000 freelance income, you'd owe approximately 26.7% in combined taxes and need to send roughly $6,675 each quarter to avoid underpayment penalties.
How much should you set aside for 1099 taxes?
A common rule of thumb is to set aside 25–30% of your net 1099 income for taxes. The exact amount depends on your income level, filing status, state, and deductions.
| Net 1099 Income | Approx. Tax Rate | Set Aside / Quarter |
|---|---|---|
| $50,000 | ~24% | ~$3,000 |
| $75,000 | ~25% | ~$4,700 |
| $100,000 | ~27% | ~$6,700 |
| $150,000 | ~30% | ~$11,200 |
Assumes single filer, standard deduction, no state income tax. State taxes add 0–13% depending on state.
FAQ
What is the self-employment tax rate?
15.3% total: 12.4% Social Security + 2.9% Medicare, applied to 92.35% of net income. If your net SE income exceeds $200,000 (single), you also owe an additional 0.9% Medicare surtax.
How do I calculate self-employment tax?
Multiply your net 1099 income by 92.35%, then apply 12.4% for Social Security (up to the $184,500 wage cap) and 2.9% for Medicare. Add the 0.9% Medicare surtax if your income exceeds $200,000. The total is your SE tax.
How much tax do independent contractors pay?
Independent contractors typically pay 25–35% of net income in combined taxes (self-employment tax + federal income tax). The exact rate depends on income level, deductions, and state. Use the calculator above for your specific situation.
When are quarterly estimated payments due?
April 15, June 15, September 15, and January 15 of the following year. If you expect to owe $1,000+ in taxes, the IRS requires quarterly payments to avoid underpayment penalties.
How much should I set aside for 1099 taxes?
Set aside 25–30% of your net 1099 income. Transfer this to a separate savings account each time you get paid. This covers self-employment tax, federal income tax, and provides a buffer for state taxes.
Can I deduct business expenses from 1099 income?
Yes. Ordinary and necessary business expenses (home office, equipment, software, mileage, professional development, health insurance) reduce your net self-employment income before any taxes are calculated. This reduces both SE tax and income tax.
What is the difference between 1099 and W-2 taxes?
W-2 employees split FICA with their employer (each pays 7.65%). Self-employed 1099 workers pay both halves (15.3%) but can deduct the employer half. Use our 1099 vs W-2 Calculator to compare the full picture.
What is the Social Security wage cap for self-employment?
For 2026, Social Security tax (12.4%) applies to the first $184,500 of net SE income (after the 92.35% adjustment). Income above this cap is not subject to SS tax but still owes Medicare tax.
Related tools
- 1099 vs W-2 Calculator — Compare contractor vs employee pay side by side
- Tax Bracket Calculator — See which federal and state brackets your income falls in
- Federal Tax Calculator — Calculate just your federal income tax with bracket breakdown
- Paycheck Estimator — W-2 take-home pay calculator for employees
- Gross-Up Calculator — Find the gross income needed to hit a target net amount
- Quarterly Tax Calculator — Estimate quarterly payments for any income type
Based on 2026 SE tax rates and federal brackets. Does not account for QBI (Qualified Business Income) deduction, SEP-IRA/Solo 401(k) contributions, self-employed health insurance deduction, or state-specific self-employment rules. Consult a tax professional for complete tax planning.