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Free tax calculator

Self-employment tax calculator

For 1099 contractors, freelancers, and sole proprietors. See your self-employment tax, the deduction that offsets part of it, and the federal income tax on top — for 2025 or 2026.

Your numbers

Nothing you type is collected, transmitted, or stored.

Tax year

Business income after business expenses — the figure from your Schedule C bottom line.

If you also have a salaried job. These consume the Social Security wage base first.

Interest, dividends, a spouse’s income if filing jointly — anything else taxed at ordinary rates.

Optional. Adds a state line alongside your federal result.

Your estimated federal tax

Enter your net self-employment profit to see the breakdown.

Self-employment tax and federal income tax breakdown
Net earnings (profit × 92.35%)
Social Security portion (12.4%)
Medicare portion (2.9%)
Self-employment tax
Half of SE tax (deduction)
Standard deduction
Taxable income
Federal income tax
Total federal tax
Effective rate on income

Federal only. Excludes the qualified business income (QBI) deduction, credits, itemised deductions, retirement and health insurance deductions, and all state and local tax.

Estimate only — not tax advice. These figures are a general educational estimate based on federal tax data and the numbers you entered. They are not a tax return, not tax advice, and not a guarantee of your actual tax. They exclude many credits, deductions, phase-outs, state and local taxes, and situation-specific rules. Using this tool does not create a client relationship. For numbers you can rely on, book a free consultation.

How this works

Why self-employment tax catches people out

The first year of freelancing usually delivers the same unpleasant surprise: the tax bill is far bigger than the income tax alone would suggest. The reason is self-employment tax, and it is not a penalty for working independently — it is simply the whole of Social Security and Medicare landing on one person.

On a payroll, those contributions are split. You pay 7.65% of your wages and your employer quietly pays a matching 7.65% you never see. Work for yourself and both halves are yours: 12.4% for Social Security up to the annual wage base, and 2.9% for Medicare on everything, with no ceiling at all. That is roughly 15.3% before a single dollar of income tax is calculated.

The law softens this in two ways, and both are built into the figures above. First, self-employment tax is applied to 92.35% of your profit rather than the full amount — a rough stand-in for the deduction an employer would have taken on its share. Second, half of the resulting self-employment tax comes off your income above the line, before your brackets are worked out. Neither makes the tax disappear, but together they take a meaningful bite out of it.

Two details change the answer more than people expect. If you also hold a W-2 job, those wages fill the Social Security wage base first — so a well-paid salary can wipe out the Social Security portion of your freelance tax entirely, leaving only Medicare. And if net earnings come to under $400, no self-employment tax is due at all.

What this tool deliberately does not model is the qualified business income deduction, which can shelter a slice of profit for many sole proprietors, or retirement contributions, which are one of the few genuinely effective levers left once the year is underway. Both are worth a conversation rather than a slider.

Since 1099 income carries no withholding, most people also need to pay through the year — see the quarterly estimated tax calculator. For help getting the underlying numbers right, see bookkeeping or book a free consultation. Selecting your state makes this a self employment tax calculator with state taxes included alongside the federal figures.

Questions

Self-employment tax, answered

When you work for someone else, Social Security and Medicare are split between you and your employer. Working for yourself, you are both — so you pay both halves: 12.4% Social Security up to the annual wage base and 2.9% Medicare with no cap. That is self-employment tax, and it sits on top of ordinary income tax, which is what surprises most people in their first year of freelancing.

The law lets you reduce net earnings to 92.35% before applying the rates, which roughly mirrors the employer-side deduction an employer would have taken. You then deduct half of the resulting SE tax again, above the line, before income tax is calculated. Both adjustments are built into this calculator.

Yes, and it is worth entering. Your W-2 wages consume the Social Security wage base first, so if your salary already exceeds it, the Social Security part of your SE tax drops away and only Medicare remains. Medicare has no cap, so that part continues regardless.

If your net earnings (profit × 92.35%) come to less than $400, no self-employment tax is due. You may still owe income tax on the profit.

The qualified business income (QBI) deduction under §199A, which can be significant for profitable sole proprietors; business credits; itemised deductions; retirement contributions; health insurance deductions; and every state and local tax. It also assumes the standard deduction. Real returns routinely differ.

Usually, yes. Self-employment income has no withholding, so the IRS expects payments through the year. Our quarterly estimated tax calculator turns an annual figure into four installments with the due dates.

Want this checked against your actual books?

Book a free consultation and get an answer you can act on — no obligation.

Important disclaimer Read

This calculator is provided for general educational and informational purposes only. It is not tax, legal, accounting, or financial advice, and must not be relied upon as such.

No professional relationship. Using this calculator does not create a CPA-client, advisory, or any professional relationship between you and IMAAR Associates CPA, PLLC. A professional relationship is established only through a signed engagement letter.

Estimates only; no warranty of accuracy. Results are approximations based solely on the limited information you enter and on general federal tax figures for the selected year (sources: IRS Rev. Proc. 2024-40 for 2025 and Rev. Proc. 2025-32 for 2026). Tax law is complex and changes frequently. The calculator does not account for all credits, deductions, phase-outs, alternative minimum tax, the qualified business income (QBI) deduction, net investment income tax, state or local taxes, or facts specific to your situation. IMAAR Associates CPA, PLLC makes no representation or warranty, express or implied, as to the accuracy, completeness, or applicability of any result.

No reliance; hold harmless. You should not make any financial, tax, or business decision based on this calculator alone. Any reliance you place on it is strictly at your own risk. To the fullest extent permitted by law, IMAAR Associates CPA, PLLC disclaims all liability for any loss or consequence arising from use of this tool.

For advice you can rely on, book a free consultation with a Washington State Licensed CPA.

Figures: IRS Rev. Proc. 2024-40 (2025) and 2025-32 (2026). Federal figures only — state and local taxes are not included. All calculations run in your browser. Nothing you enter is collected, transmitted, or stored.

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