The general self-employment tax rate is 15.3% of net earnings subject to the tax: 12.4% for Social Security and 2.9% for Medicare. For 2026, the Social Security portion applies only until your combined wages and self-employment earnings reach $184,500, up from $176,100 in 2025. The Medicare portion has no wage cap. An additional 0.9% Medicare tax may apply when combined wages and self-employment earnings exceed $200,000 for single or head of household filers, $250,000 for married filing jointly, or $125,000 for married filing separately. This calculator applies those limits and uses the W-2 wages you enter when determining the remaining Social Security wage base.

Start with net profit, which is gross 1099 income minus ordinary and necessary business expenses. Generally, multiply that profit by 92.35% to find net earnings subject to self-employment tax. Then apply 12.4% Social Security tax up to the remaining annual wage base and 2.9% Medicare tax, plus Additional Medicare Tax when applicable. For example, if you have $50,000 of net profit, no W-2 wages, and remain below the wage base, $50,000 multiplied by 92.35% equals $46,175, and the base self-employment tax is about $7,065. The calculator runs these steps and estimates federal income tax separately.

Yes. They are separate federal tax calculations that can both apply to your business income. Self-employment tax funds Social Security and Medicare. Federal income tax uses progressive brackets and depends on filing status, household income, deductions, and credits. The calculator combines both in the estimated federal total, then shows a separate estimate for the state you select. Local taxes are not included.

There is no single percentage that works for everyone. Your set-aside depends on net profit, W-2 wages, filing status, household income, deductions, credits, and your state. This calculator estimates the additional federal and selected-state income tax associated with your 1099 income and turns it into a personalized range based on gross 1099 income. The highlighted percentage is the upper end of that planning range. Local income taxes and special state adjustments are not included.

For 2026 calendar-year taxpayers, federal estimated payments are generally due April 15, 2026, June 15, 2026, September 15, 2026, and January 15, 2027. If a due date falls on a weekend or legal holiday, it moves to the next business day. Individuals generally need federal estimated payments if they expect to owe at least $1,000 after withholding and refundable credits and do not meet an exception or safe harbor. This calculator provides annual federal and state planning estimates. State payment thresholds and due dates can differ, so check your selected state's guidance.

There is no automatic first-year exemption. You may need estimated payments if you expect to owe at least $1,000. You can generally avoid an underpayment penalty if timely withholding and estimated payments equal at least the smaller of 90% of the current year's tax or 100% of the prior year's tax. The prior-year percentage is generally 110% when prior-year adjusted gross income was more than $150,000, or more than $75,000 if married filing separately. If your prior-year tax liability was zero, you were a U.S. citizen or resident for the full year, and that return covered 12 months, you generally do not have to make estimated payments for the current year. Any tax you owe is still due when you file.

You can generally deduct expenses that are ordinary and necessary for your business, subject to the rules for each expense. Common examples include a qualifying home office, business vehicle costs or mileage, the business-use portion of phone and internet, software, subscriptions, supplies, professional fees, and business insurance. Schedule C business expenses reduce net profit, which can lower both federal income tax and self-employment tax. Self-employed health insurance is generally claimed separately as an adjustment to income and does not reduce net earnings for self-employment tax. This calculator subtracts the business expenses you enter from gross 1099 income and treats other adjustments separately.

You can generally deduct the employer-equivalent portion of self-employment tax as an adjustment to income. This is usually one-half of the base self-employment tax and does not include Additional Medicare Tax. The deduction can reduce adjusted gross income and federal income tax, but it does not reduce self-employment tax itself. You can claim it whether or not you itemize. The calculator includes this deduction automatically.

Claiming every legitimate Schedule C business expense reduces net profit and usually reduces self-employment tax. SEP-IRA or Solo 401(k) contributions and the self-employed health insurance deduction may reduce federal income tax, but they generally do not reduce net earnings for self-employment tax. An S corporation election can change employment-tax treatment because reasonable W-2 wages are subject to payroll taxes while qualifying non-wage distributions are not. The election also brings payroll, filing, compliance, and reasonable-compensation requirements, and the IRS can reclassify distributions as wages. This calculator does not model an S corporation election, so review that decision with a qualified tax professional.