How to use this calculator
- Net self-employment income. Enter your profit: 1099 income and other business receipts minus business expenses. If you’ve filed before, it’s Schedule C line 31.
- W-2 wages. If you also have a job, enter your wages. They count toward the Social Security wage base and push your business income into higher brackets.
- Filing status and state. These set your federal brackets and state income tax.
- Under More options, add children under 17 for the child tax credit and any federal tax withheld from your job, which reduces your estimated payments.
The headline is your self-employment tax. The breakdown adds the federal and state income tax your business profit causes, so you can see the total bite, and the table lists each 2026 quarterly payment.
The formula
Then for income tax:
- Adjusted gross income = wages + profit − half of the self-employment tax.
- Taxable income = AGI − standard deduction − QBI deduction (20% of profit after the half-SE-tax deduction, capped at 20% of taxable income).
- Apply the 2026 brackets and subtract credits.
- Add 0.9% Additional Medicare Tax on wages and net earnings above $200,000 ($250,000 joint, $125,000 married filing separately).
Worked example
A single freelancer in Illinois with $60,000 of profit and no other job:
- Net earnings: $60,000 × 92.35% = $55,410
- Social Security: 12.4% × $55,410 = $6,871; Medicare: 2.9% × $55,410 = $1,607
- Self-employment tax: $8,478, of which $4,239 is deductible
- AGI $55,761 − $16,100 standard deduction = $39,661; the QBI deduction is $7,932, leaving taxable income of $31,729
- Federal income tax: $3,559; Illinois income tax: about $2,615
- Total: $14,653, or 24.4% of profit. Federal estimated payments: $3,010 a quarter.
With a day job. Someone earning $160,000 in wages and $50,000 on the side has only $24,500 of room left under the $184,500 wage base, so the Social Security part of SE tax is $3,038 instead of $5,726. Medicare is $1,339, and because wages plus net earnings pass $200,000, there’s $56 of Additional Medicare Tax.
Federal tax on self-employment income (2026)
Single filer, no other income, standard deduction, simplified QBI deduction. Add state income tax for your state.
| Net profit | SE tax | Federal income tax | Total federal | Share of profit | Quarterly payment |
|---|---|---|---|---|---|
| $20,000 | $2,826 | $199 | $3,025 | 15.1% | $757 |
| $40,000 | $5,652 | $1,775 | $7,427 | 18.6% | $1,857 |
| $60,000 | $8,478 | $3,559 | $12,037 | 20.1% | $3,010 |
| $80,000 | $11,304 | $5,344 | $16,647 | 20.8% | $4,162 |
| $100,000 | $14,130 | $8,235 | $22,365 | 22.4% | $5,592 |
| $150,000 | $21,194 | $16,413 | $37,608 | 25.1% | $9,402 |
| $200,000 | $28,234 | $25,196 | $53,431 | 26.7% | $13,358 |
2026 estimated tax due dates
| Payment | Income earned | Due |
|---|---|---|
| 1 | January 1 – March 31, 2026 | April 15, 2026 |
| 2 | April 1 – May 31, 2026 | June 15, 2026 |
| 3 | June 1 – August 31, 2026 | September 15, 2026 |
| 4 | September 1 – December 31, 2026 | January 15, 2027 |
For 2027 income, the IRS’s standard schedule is April 15, June 15 and September 15, 2027, and January 15, 2028, each moved to the next business day if it falls on a weekend or legal holiday.
Avoiding the penalty. You generally won’t owe an underpayment penalty if you owe less than $1,000 after withholding, or if you paid at least 90% of your 2026 tax or 100% of your 2025 tax (110% if your 2025 AGI was over $150,000, or $75,000 married filing separately). The prior-year rule is the easy target when your income is rising.
Tips for the self-employed
- Track every business expense. Each dollar of expenses cuts both self-employment tax and income tax, so it’s worth more than an ordinary deduction.
- Retirement contributions to a SEP IRA or solo 401(k) lower income tax (not SE tax). See the retirement calculator.
- Price for taxes. If you’re setting rates, the hourly rate calculator helps you cover self-employment tax and unpaid time.
- Have a job too? Raising withholding with the W-4 calculator can replace quarterly payments, since withholding counts as paid evenly through the year.
Assumptions & limitations
- Tax year 2026. Social Security wage base $184,500; brackets, standard deduction and the QBI threshold from Rev. Proc. 2025-32.
- QBI deduction, simplified. It’s calculated only when taxable income is at or below $201,750 ($403,500 joint, $201,775 married filing separately), as 20% of profit minus the half-SE-tax deduction, with the new $400 minimum for at least $1,000 of qualified business income. Above the threshold it’s left out, which can overstate your tax. Self-employed health insurance and retirement contributions, which reduce it, aren’t modeled.
- One self-employed person; for two self-employed spouses, run each business separately.
- State tax treats business profit like wages and ignores local taxes and state business taxes.
- Quarterly payments are a quarter of the projected federal tax after withholding. They don’t include state estimated payments.
Sources
- IRS Topic 554: Self-employment tax
- IRS Publication 15 (2026): Social Security wage base $184,500
- IRS Topic 560: Additional Medicare Tax
- IRS Revenue Procedure 2025-32 (2026 brackets, standard deduction, QBI threshold and $400 minimum deduction)
- IRS Form 1040-ES (2026): Estimated tax for individuals
- IRS Publication 505 (2026): Tax withholding and estimated tax
This estimate is for planning only and isn’t tax advice. Your actual tax depends on your complete return.
Frequently asked questions
What is the self-employment tax rate for 2026?
It’s 15.3% of 92.35% of your net profit, made up of 12.4% for Social Security and 2.9% for Medicare. The Social Security part stops at $184,500 of combined wages and self-employment earnings for 2026. An extra 0.9% Additional Medicare Tax applies above $200,000 ($250,000 for joint filers).
Why is self-employment tax based on 92.35% of profit?
Employees pay 7.65% and their employer pays another 7.65% that isn’t counted as the employee’s income. Multiplying profit by 92.35% (100% minus 7.65%) puts you on the same footing. You then deduct half of the self-employment tax from your income for income tax purposes.
Do I pay self-employment tax if I also have a W-2 job?
Yes, on your business profit. But wages already taxed for Social Security count toward the $184,500 cap, so if your wages are high enough, your business income only owes the 2.9% Medicare part. Your job’s withholding can also cover your estimated tax if you raise it on Form W-4.
How much should I set aside for taxes on 1099 income?
For a single filer with no other income, federal self-employment and income tax take about 15% to 21% of profit between $20,000 and $80,000, and more above that. Add your state’s income tax. Setting aside 25% to 30% is a common cushion; the calculator gives your own figure.
When are 2026 estimated tax payments due?
April 15, June 15 and September 15, 2026, and January 15, 2027. You can skip the January payment if you file your 2026 return by February 1, 2027 and pay everything you owe. A due date that falls on a weekend or holiday moves to the next business day.
What is the QBI deduction?
The qualified business income deduction lets most sole proprietors deduct up to 20% of their business income, limited to 20% of taxable income. Below $201,750 of taxable income ($403,500 joint) for 2026, it’s that simple. Above that, limits based on wages you pay, business property and the type of business apply.
Is there a minimum income for self-employment tax?
Yes. If your net earnings from self-employment (92.35% of profit) are less than $400, you don’t owe self-employment tax. You may still need to report the income and pay income tax on it.
Updated November 2026. Results are estimates for educational purposes and depend on the inputs you provide.