Federal estimate only. It excludes state/local tax, credits, QBI, and detailed income-tax brackets.
Calculation details
Planning estimate only, not financial, tax, or legal advice. Verify assumptions and current rules before making decisions.
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Use this result
Share the current inputs or ask ChatGPT to explain the calculation in context.
What does this calculator estimate?
A 1099 self-employment tax calculator estimates the tax on freelance and contractor income. Enter revenue and expenses to see SE tax and an income-tax estimate.
- SE tax = profit × 92.35% × 15.3%
- $50k profit → ~$7,065 SE tax
- Plus federal income tax on the same profit
How self-employment tax works
Self-employed workers pay both the employee and employer shares of Social Security and Medicare — 15.3% on 92.35% of net profit. On top of that, the profit is taxed as income. The calculator estimates both so you know what to set aside.
Limitations to watch for
The Social Security wage cap ($168,600 in 2025) applies above the threshold — high earners pay less than 15.3% effective. The tool estimates federal income tax with the standard deduction; state tax isn't modeled. Quarterly estimated payments are required for most filers.
How to use it in practice
Track real revenue and deductible expenses, enter them, and read the estimated tax. Set aside 25–35% of profit for taxes. Pay quarterly to avoid penalties. Confirm the current wage cap and brackets each year.
['Enter total revenue.', 'Enter deductible expenses.', 'Choose filing status; read SE tax and income-tax estimates.']
How self-employment tax works
Self-employment tax is the Social Security and Medicare contribution for people without an employer: 15.3 percent of net earnings, made of 12.4 percent Social Security and 2.9 percent Medicare. It applies to 92.35 percent of net profit, so the effective rate on profit is about 14.13 percent — the calculator handles the 92.35 percent adjustment automatically.
Net profit is the starting point
Self-employment tax applies to net profit, not gross revenue: revenue minus deductible business expenses. Tracking expenses is therefore a direct tax lever — every legitimate deduction lowers the base on which 15.3 percent is charged. The calculator accepts net profit as the input, so the accuracy of the result depends on accurate expense tracking.
The Social Security wage cap
The 12.4 percent Social Security portion stops at the annual wage base (around $176,100 for 2026). Income above the cap pays only the 2.9 percent Medicare portion, plus the 0.9 percent additional Medicare tax on earnings above the high-income threshold. The calculator applies the cap when you enter income above it.
Quarterly estimated payments
Because no employer withholds, self-employed taxpayers generally pay quarterly estimated tax. A common approach is to set aside 25–35 percent of net profit for federal tax (self-employment plus income tax) and pay it in four installments. The calculator shows the SE tax component so you can build a realistic set-aside rate.
The deduction nobody should miss
Half of your self-employment tax is deductible above the line on your income tax return — it reduces income tax even though it does not reduce the SE tax itself. The calculator reports the SE tax and the deductible half so the full picture fits your tax planning.
How this calculator works
Formula
Net earnings = profit × 92.35%. Self-employment tax = net × 15.3% (12.4% Social Security + 2.9% Medicare, with the Social Security wage cap). The tool also estimates federal income tax.
Worked example
$50,000 profit: net earnings $46,175 → SE tax ≈ $7,065.
Assumptions to verify
- US federal tax rules apply.
- The standard deduction is used.
- No state or city tax is modeled.
Frequently asked questions
How much tax do self-employed people pay?
15.3% SE tax on 92.35% of profit, plus income tax on the same profit — typically 25–35% total effective.
How is self-employment tax calculated?
Profit × 92.35% × 15.3%: $50,000 → $7,065.
Why do I pay 15.3%?
You cover both the employee (7.65%) and employer (7.65%) shares of Social Security and Medicare.
Can I deduct expenses?
Yes — business expenses reduce profit before tax; that's why the tool asks for them.
Do I need to pay quarterly?
Yes — most self-employed filers must pay estimated tax quarterly to avoid penalties.
What is the wage cap?
The Social Security portion stops at a wage cap (~$168k in 2025); Medicare continues.
Is state tax included?
No — the tool estimates federal. Add your state's income tax separately.
What is the self-employment tax rate?
15.3% — 12.4% for Social Security and 2.9% for Medicare, applied to 92.35% of net profit.
Is self-employment tax the same as income tax?
No — SE tax funds Social Security/Medicare; income tax is separate and paid on top.
When is the Social Security cap applied?
The 12.4% portion stops at the annual wage base; income above it pays only Medicare portions.
Can I deduct half the self-employment tax?
Yes — half is deductible on your income tax return.
Cite this tool
BoringToolsKit. “1099 Income Tax Calculator.” boringtoolskit.com/self-employment-tax/ (reviewed 2026-08-25). Free to reference in articles, syllabi, and answer posts with a link.
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