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Self-employment (1099) tax calculator

Freelancers and 1099 workers pay both halves of Social Security and Medicare. See your self-employment tax, income tax and what to pay each quarter.

Net self-employment profitincome − business expenses
/ yr
Filing status

Quarterly estimated tax payment

$4,708

$18,832 a year · 23.5% of your profit

  • Social Security (12.4%)$9,161.12
  • Medicare (2.9%)$2,142.52
  • Income tax$7,526.56

You'd owe more than $1,000. Increasing withholding (Form W-4) or paying quarterly estimates can avoid an underpayment penalty.

Self-employment tax
$11,304
Deductible half
$5,652
Income tax
$7,527
Total federal tax
$18,830

Quarterly due dates: April 15, June 15, September 15 and January 15. Excludes the 20% QBI deduction, which can lower income tax for many sole proprietors.

Per quarter$4,708

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How self-employment tax is calculated

  1. Net earnings = net profit × 92.35%.
  2. Social Security = 12.4% × net earnings, up to the $184,500 wage base (minus any W-2 wages).
  3. Medicare = 2.9% × all net earnings.
  4. Half the total is deductible from income for income tax purposes.

Example: $80,000 profit → $73,880 net earnings → $11,303.64 self-employment tax.

Assumptions

  • 2026 federal rules: IRS brackets, standard deduction and capital gains thresholds (Rev. Proc. 2025-32), plus Schedule 1-A deductions (2025–2028).
  • MAGI is treated as equal to AGI (true unless you exclude foreign or Puerto Rico income). Net investment income tax treats 'other income' as investment income.
  • Doesn't include state tax, AMT, the earned income credit, education credits or the 20% qualified business income deduction (so self-employed results may run high).
  • Estimates only — your actual tax depends on your full return.

Frequently asked questions

What is the self-employment tax rate for 2026?+

15.3%: 12.4% Social Security on net earnings up to the $184,500 wage base plus 2.9% Medicare on all net earnings. It applies to 92.35% of your net profit, and an extra 0.9% Medicare tax applies above $200,000 ($250,000 joint).

Can I deduct self-employment tax?+

Half of it. The employer-equivalent half of your self-employment tax is deducted when figuring your adjusted gross income, which lowers your income tax (not the SE tax itself).

When are quarterly estimated taxes due?+

April 15, June 15, September 15 and January 15 of the following year. You generally owe estimates if you expect to owe $1,000 or more when you file.

How do I avoid an underpayment penalty?+

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) through withholding and estimates, spread evenly across the quarters.

Do I pay self-employment tax if I also have a W-2 job?+

Yes, but Social Security tax stops once your combined wages and self-employment earnings reach $184,500. The calculator accounts for your W-2 wages.

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Uses 2026 rules and limits. Last reviewed October 15, 2026. Calculator version 1.0.0. Sources: IRS Rev. Proc. 2025-32 (tax year 2026 inflation adjustments) · IRS Schedule 1-A (tips, overtime, car loan interest, seniors) · IRS — OBBBA deductions for working Americans and seniors · Journal of Accountancy — Social Security wage base and COLA for 2026 · IRS Instructions for Schedule A (SALT limitation worksheet). Results are estimates for educational purposes, not financial, tax or lending advice. How we check our numbers.