Self-employment tax calculator
For 1099 contractors and freelancers: self-employment tax, income tax and the quarterly amount to set aside, from one profit number.
Set aside each quarter
$4,162
$16,647 a year, 20.8% of profit. You keep $63,353.
| Net earnings subject to SE tax (92.35%) | $73,880 |
|---|---|
| Social Security (12.4%) | $9,161 |
| Medicare (2.9%) | $2,143 |
| Deduction for half of SE tax | −$5,652 |
| Federal taxable income (after std. deduction & QBI) | $46,599 |
| Federal income tax | $5,344 |
| State income tax | $0 |
| Total | $16,647 |
Why freelancers pay “double” FICA
An employee sees 7.65% for Social Security and Medicare on the pay stub, but the employer quietly pays another 7.65% on top. When you work for yourself, you’re both, so you pay 15.3%. The IRS softens this two ways: SE tax is charged on 92.35% of profit (not 100%), and half of it is deductible. The result is that a freelancer’s total FICA-equivalent cost is close to, not above, the combined employer-plus-employee amount on the same pay.
Comparing a contract offer to a salaried one? A 1099 rate needs to be meaningfully higher to match: add the extra 7.65%, benefits and unpaid time off. Run the salaried side in the paycheck calculator.
Simplified estimate: assumes the QBI deduction applies in full (true below $197,300 of taxable income single / $394,600 joint in 2025) and ignores other income, credits and deductions. Source: IRS Schedule SE instructions and Publication 505.
Questions people ask
What is the self-employment tax rate?
15.3%: 12.4% for Social Security (on net earnings up to $184,500 in 2026) and 2.9% for Medicare with no cap, plus 0.9% Additional Medicare Tax above $200,000 ($250,000 joint). It applies to 92.35% of your net profit, which mirrors the fact that employees don’t pay FICA on the employer’s half.
How much should I set aside for taxes as a 1099 contractor?
A common rule is 25–30% of profit, but it depends on your bracket and state. At $80,000 of profit in a no-income-tax state, the calculator shows total federal tax of roughly 22% of profit. Put your numbers in for a specific figure, then divide by four for quarterly estimated payments.
When are quarterly estimated taxes due?
April 15, June 15, September 15 and January 15 of the following year (moved to the next business day when they fall on a weekend or holiday). Paying at least 100% of last year’s tax (110% if your AGI was over $150,000) through estimates generally avoids an underpayment penalty.
Do I get a deduction for self-employment tax?
Yes. You deduct half of your self-employment tax (the employer-equivalent portion) when calculating adjusted gross income. Many sole proprietors can also take the Qualified Business Income deduction of up to 20% of qualified profit, which the calculator estimates for incomes below the phase-out thresholds.