Self-Employment Tax Calculator (2026)
Freelancers, contractors and gig workers pay both halves of Social Security and Medicare, and nobody withholds tax for you. Enter your net profit to see your total 2026 tax bill and what to set aside each quarter.
| Per year | Per quarter | |
|---|---|---|
| Net profit | $75,000 | $18,750 |
| Self-employment tax (15.3%) | $10,597 | $2,649 |
| Federal income tax | $4,898 | $1,224 |
| State & local income tax | $0 | $0 |
| Take-home | $59,505 | $14,876 |
Effective tax rate 20.7%. Deductions applied: half of SE tax ($5,299) and the 20% QBI deduction ($10,720). A W-2 employee paid $75,000 in the same state would take home $61,593.
How self-employment tax is calculated
- Start with net profit: what you earned minus business expenses.
- Multiply by 92.35%. This mirrors the employer half of FICA that a regular employee never sees.
- Apply 15.3%: 12.4% Social Security (up to $184,500) plus 2.9% Medicare.
- Deduct half of it when figuring your income tax, along with the 20% QBI deduction and the standard deduction.
1099 vs. W-2 at the same pay
Texas, single filer, 2026. "W-2" is an employee paid the same amount as the freelancer's net profit.
| Net profit | SE tax | Total tax | 1099 take-home | W-2 take-home |
|---|---|---|---|---|
| $30,000 | $4,239 | $5,181 | $24,819 | $26,285 |
| $50,000 | $7,065 | $9,732 | $40,268 | $42,355 |
| $75,000 | $10,597 | $15,495 | $59,505 | $61,593 |
| $100,000 | $14,130 | $22,365 | $77,635 | $79,180 |
| $150,000 | $21,194 | $37,608 | $112,392 | $113,791 |
The gap is smaller than most people expect, because the QBI deduction and the deduction for half of self-employment tax offset a good part of the extra Social Security and Medicare. To match the take-home pay of an $80,000 W-2 job in Texas, a freelancer needs about $82,300 in net profit. That's before benefits, though: health insurance, a 401(k) match and paid time off are worth thousands more, so price your work accordingly.
Setting money aside
A simple habit that keeps freelancers out of trouble: move a fixed percentage of every payment into a separate savings account the day it arrives. At $75,000 of profit in a no-tax state, about 21% covers it. In a state with income tax, set aside a few points more. Then pay your quarterly estimates straight from that account.
Frequently asked questions
What is the self-employment tax rate for 2026?
15.3% of 92.35% of your net earnings: 12.4% for Social Security on up to $184,500 and 2.9% for Medicare with no cap. An extra 0.9% Medicare tax applies above $200,000 ($250,000 married filing jointly). It's the same total an employee and employer pay together, except you cover both halves.
How much tax will I pay on $75,000 of 1099 income?
A single freelancer in Texas with $75,000 of net profit owes about $10,597 in self-employment tax and $4,898 in federal income tax, for a total of $15,495 (20.7%). That works out to quarterly payments of about $3,874.
When are quarterly estimated taxes due?
For the 2026 tax year the deadlines are April 15, 2026, June 15, 2026, September 15, 2026 and January 15, 2027. If you expect to owe $1,000 or more when you file, you generally need to make these payments to avoid an underpayment penalty.
What is the QBI deduction?
The qualified business income deduction lets most sole proprietors deduct up to 20% of their business profit from taxable income. Once taxable income passes $201,750 ($403,500 married filing jointly) in 2026 it starts to shrink, and it disappears entirely by $276,750 ($553,500) for service businesses and for any business without employees or business property. Check the service business box in the calculator if that describes your work. It reduces income tax only, not self-employment tax.
Do I pay self-employment tax on all my income?
On your net profit, meaning revenue minus business expenses, once your net earnings (92.35% of profit) reach $400, which is about $433 of profit. That’s why tracking expenses matters so much: every $100 of legitimate expenses cuts roughly $14 of self-employment tax on top of income tax savings.