See your SE tax, income tax, and quarterly estimate — all in one shot.
Use this calculator to compute your full federal tax picture as a freelancer or 1099 contractor — 15.3% SE tax, the half deduction, income tax on what is left, and the quarterly payment to send the IRS.
Direct answers to the most common questions, in plain language. Skim if you're in a hurry; dig deeper below.
15.3% on net earnings × 92.35%.
Self-employment tax is 15.3% — 12.4% Social Security and 2.9% Medicare. You only pay it on 92.35% of your net self-employment earnings, and the Social Security portion caps at the annual wage base ($176,100 for 2026).
Anyone with $400+ in net SE earnings.
You owe SE tax if your net self-employment earnings are $400 or more for the year. It applies to sole proprietors, single-member LLCs, partners in partnerships, and most 1099 income — even side hustles.
Yes, on the front of your 1040.
You deduct half of the SE tax as an above-the-line adjustment, reducing your federal income tax. This calculator shows that deduction and the resulting income-tax savings so you see the true net cost.
Yes, quarterly, if you expect to owe $1,000+.
The IRS expects you to pay as you earn. Quarterly estimates are due April 15, June 15, September 15, and January 15. Underpay and you owe interest. This calculator shows what each quarterly payment should be.
The mechanics in short answers — no jargon, no upsell.
Gross income from your business minus all ordinary and necessary business expenses. This is what flows from Schedule C to Schedule SE.
You only pay SE tax on 92.35% of your net earnings — this approximates the employer-equivalent FICA deduction that W-2 workers do not pay.
12.4% Social Security up to the wage base, plus 2.9% Medicare on every dollar. High earners owe an extra 0.9% Medicare surtax above $200k/$250k.
The "employer half" of SE tax — 7.65% — is deductible as an above-the-line adjustment. It reduces your income tax, not your SE tax.
Designed so anyone can model their situation in under a minute, with or without a finance background.
The full federal picture — SE tax, the deduction for half, and income tax on what is left.
Total tax divided into 4 estimates so the IRS does not surprise you in April.
Compare SE tax as a sole prop vs reasonable-comp S-corp savings.
What you actually keep after every federal tax line — the number that matters.
The Social Security portion stops at $176,100. See if you cross it.
Current wage base, brackets, and standard deduction — refreshed for tax year 2026.
Everything you might ask before, during, or after using this tool.
A safe rule of thumb is 25–30% of net self-employment income for federal alone (SE tax plus federal income tax). Add 0–10% for state income tax depending on where you live. This calculator gives you the exact number — use that instead of the rule of thumb.
Yes, if your net SE earnings exceed $400 for the year. The IRS does not care whether it is your main job or a weekend gig — net is net.
The 2026 Social Security wage base is $176,100. The 12.4% Social Security portion of SE tax stops accruing on earnings above that level. The 2.9% Medicare portion has no cap.
An extra 0.9% on earnings above $200,000 (single) or $250,000 (married filing jointly). It applies to SE earnings and W-2 wages combined. The deduction for "half SE tax" does not apply to this 0.9%.
Maybe, once your net SE income reliably exceeds about $80–100k. As an S-corp owner, you pay yourself a reasonable salary (subject to FICA) and take the rest as a distribution (no SE tax). The savings need to outweigh the extra payroll, filing, and admin costs.
April 15, June 15, September 15, and January 15 of the following year. If a date falls on a weekend or holiday, payment is due the next business day.
Yes — pay either 100% of your prior-year total tax (110% if AGI > $150k) or 90% of the current year's tax through withholding and estimates. Hit either safe harbor and the penalty does not apply, regardless of what you actually owe in April.
No. SE tax only applies to net positive earnings. A business loss does not generate SE tax. It can also reduce SE tax owed from other sole-prop businesses, since SE earnings are netted across sole props.
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When you are W-2, your employer pays 7.65% of FICA on your wages and you pay another 7.65%. Combined: 15.3%. When you are self-employed, you are both — so you owe the full 15.3% yourself.
That is the entire concept. The Social Security/Medicare system needs to be funded the same way regardless of how you earn — so the SE tax fills the gap.
You do not pay SE tax on 100% of your net earnings — you pay on 92.35%. That number is 1 − 7.65%, which is an approximation of the employer-side FICA that a W-2 worker would not earn on themselves.
It looks like a discount. It is actually structural — making SE tax mathematically equivalent to W-2 FICA.
You can deduct half of your SE tax (7.65% effectively) — but that deduction reduces your income tax, not your SE tax. Your SE tax stays at the full 15.3% of the 92.35% base.
For someone in a 24% federal bracket, the half deduction is worth 24% × (half of SE tax). It softens the blow, it does not zero it out.
Once your net self-employment income is reliably above $80–100k, it is worth modeling. The win: you pay yourself a "reasonable compensation" salary (subject to FICA) and take the remainder as a distribution (not subject to SE tax).
The cost: payroll software, a corporate tax return, possibly a separate state filing fee. The break-even depends on your state and how much extra admin you can tolerate.
Two short notes worth reading before you trust any number on this page.
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Results are not financial, legal, or tax advice. Please consult a qualified professional before any decision about your loan, investments, or personal finances. Actual loan terms and charges depend on your bank and individual circumstances.
