How this calculator works
Enter your net profit for the year (what you earned minus business expenses), your filing status and your state’s income tax rate. The calculator estimates your self-employment tax, your federal income tax after the standard deduction and the QBI deduction, your state tax, and the quarterly payment to send the IRS.
Self-employment tax: 15.3%
Employees split Social Security and Medicare with their employer. When you’re self-employed you’re both, so you pay both halves:
- 12.4% for Social Security, on up to $184,500 of earnings in 2026.
- 2.9% for Medicare, with no cap, plus 0.9% above $200,000 ($250,000 married filing jointly).
It’s charged on 92.35% of your net profit, not all of it. That trims off the equivalent of the employer’s share, and you can also deduct half of the tax itself when working out your income tax.
Example: $60,000 of profit
Single, no employees, in a state with no income tax:
| Step | Amount |
|---|---|
| Earnings subject to SE tax (92.35%) | $55,410 |
| Social Security (12.4%) | $6,870.84 |
| Medicare (2.9%) | $1,606.89 |
| Self-employment tax | $8,477.73 |
| Minus half of SE tax, standard deduction and QBI deduction | Taxable income $31,728.91 |
| Federal income tax | $3,559.47 |
| Total | $12,037.20 (20% of profit) |
That’s $3,009.30 a quarter in estimated payments. For comparison, an employee earning a $60,000 salary pays $4,590 in Social Security and Medicare; the self-employed version is almost twice that, because nobody pays the other half for you.
At $30,000 of profit the total is about $5,181 (17%); at $100,000, $22,365 (22%), or $5,591 a quarter.
The QBI deduction
Sole proprietors can usually deduct up to 20% of their business profit, on top of the standard deduction. In the $60,000 example it’s worth $7,932, capped at 20% of taxable income. Since 2026 there’s also a minimum deduction of $400 if your business income is at least $1,000.
Above $201,750 of taxable income ($403,500 married filing jointly) it starts to shrink, and for a business with no employees it disappears over the next $75,000 ($150,000 jointly). With $250,000 of profit, for instance, part of the deduction is already gone, and the total tax reaches about $66,360, or 27%.
Quarterly estimated taxes
Nobody withholds tax from freelance income, so the IRS expects you to pay during the year if you’ll owe $1,000 or more. For 2026 the due dates are:
- April 15, 2026
- June 15, 2026
- September 15, 2026
- January 15, 2027
To stay clear of penalties, pay at least 90% of this year’s tax or 100% of last year’s (110% if your income was over $150,000). Most states with an income tax have their own estimated payments too.
Ways to lower the bill
- Track every business expense. Equipment, software, a home office and business mileage all reduce your profit, and with it both taxes.
- Retirement accounts. A SEP-IRA or Solo 401(k) lets you put aside much more than an IRA and lowers your income tax.
- Health insurance. Self-employed people can usually deduct their health insurance premiums.
This calculator assumes self-employment is your only income. If you also have a job, your wages use up part of the $184,500 Social Security cap and your income tax brackets fill up faster; the paycheck calculator covers the salary side.