Self-Employed Tax Calculator: What Freelancers and 1099 Contractors Actually Keep (2026)
Self-employed workers pay both the employee and employer share of Social Security and Medicare (15.3% total). On $100,000 in net self-employment income, the SE tax alone is $14,130. This calculator shows your complete tax picture including the 50% SE deduction and QBI deduction.
Your Take-Home Pay
$78,655/year
Effective rate: 21.3%
| Gross SE income | $100,000 |
| Net SE income | $100,000 |
| SE tax (SS: $11,451 + Medicare: $2,678) | -$14,130 |
| 50% SE deduction | -$7,065 from AGI |
| QBI deduction (20%) | -$20,000 |
| Federal income tax | -$7,216 |
| State income tax | $0 |
| Take-home pay | $78,655 |
W-2 Employee vs. Self-Employed: $100K Side by Side
W-2 Employee ($100K)
Employer also pays matching 7.65% FICA on your behalf.
Self-Employed ($100K net)
Difference: $525 less take-home as self-employed.
Self-Employment Tax at Different Income Levels
| Net SE Income | SE Tax | Federal Tax | Take-Home |
|---|---|---|---|
| $50,000 | -$7,065 | -$2,196 | $40,739 |
| $75,000 | -$10,597 | -$4,384 | $60,019 |
| $100,000 | -$14,130 | -$7,216 | $78,655 |
| $150,000 | -$21,194 | -$15,239 | $113,567 |
| $200,000 | -$28,234 | -$23,746 | $148,020 |
| $300,000 | -$31,606 | -$43,047 | $225,347 |
How Self-Employment Tax Works (2026)
Self-employment tax is the self-employed equivalent of FICA. As a W-2 employee, your employer pays half of your Social Security (6.2%) and Medicare (1.45%) taxes. As self-employed, you pay both halves: 12.4% for Social Security and 2.9% for Medicare, totaling 15.3%.
The 92.35% factor: You do not pay SE tax on your full net income. The IRS lets you multiply net self-employment income by 92.35% (92.35%) before calculating SE tax. This adjustment accounts for the fact that employers get to deduct their share of FICA as a business expense.
The 50% deduction: You can deduct half of your SE tax from your adjusted gross income. This reduces your federal income tax (but not the SE tax itself). On $100,000 net SE income, the SE tax is $14,130, and you deduct $7,065 from your AGI.
Social Security wage cap: The 12.4% Social Security portion applies only to the first $184,500 of SE taxable income (2026). Above that, you only pay the 2.9% Medicare portion.
Additional Medicare Tax: If your SE taxable income exceeds $200,000 (single) or $250,000 (MFJ), you pay an additional 0.9% Medicare surtax on the excess.
Key Deductions for Self-Employed Workers
QBI Deduction (Section 199A)
Deduct 20% of qualified business income from taxable income. Phase-out begins at $191,950 (single) / $383,900 (MFJ) for specified service businesses (consulting, law, accounting, health, etc.).
Retirement: SEP IRA vs. Solo 401(k)
SEP IRA: contribute up to 25% of net SE income (max $69,000). Solo 401(k): $23,500 employee contribution + 25% employer match (max $69,000 total). Solo 401(k) often allows higher contributions at lower income levels.
Health Insurance Deduction
Self-employed individuals can deduct 100% of health insurance premiums for themselves and their family from adjusted gross income. This reduces income tax but not SE tax.
Business Expenses
Deductible business expenses reduce both SE tax and income tax. Home office, equipment, software, travel, professional development, and other ordinary/necessary business costs all qualify.
Quarterly Estimated Tax Payments (2026)
Self-employed workers must make quarterly estimated tax payments to avoid underpayment penalties. The IRS expects you to pay taxes as you earn, not in a lump sum at year-end.
| Quarter | Income Period | Due Date |
|---|---|---|
| Q1 | Jan 1 - Mar 31 | April 15, 2026 |
| Q2 | Apr 1 - May 31 | June 15, 2026 |
| Q3 | Jun 1 - Aug 31 | September 15, 2026 |
| Q4 | Sep 1 - Dec 31 | January 15, 2027 |
Safe harbor: Pay at least 100% of last year's total tax liability (110% if AGI exceeded $150,000) in estimated payments to avoid penalties, even if you owe more when filing.
S-Corp Election: When Does It Make Sense?
An S-Corp election lets you split income between a "reasonable salary" (subject to payroll tax) and distributions (exempt from SE tax). This can save thousands in SE tax, but adds compliance costs.
Rule of thumb
S-Corp election generally starts saving money when net SE income exceeds $80,000 to $100,000 per year. Below that, the added costs of payroll processing ($500 to $2,000/year), a separate S-Corp tax return ($1,000 to $3,000), and compliance requirements often outweigh the SE tax savings.