United States · Tax year 2026 · Every state and DC
Self-employment tax calculator 2026
Self-employment tax is 15.3% of 92.35% of your profit. A single freelancer in Illinois with $85,000 of income and $10,000 of expenses owes about $18,800.33 for 2026: $10,597.16 of self-employment tax, $4,897.74 of federal income tax and $3,305.43 of Illinois tax. That is 22.1% of every payment to set aside.
Type your income and expenses to see your self-employment tax, federal and state income tax, and your quarterly payments. No sign-up, and nothing you type leaves your browser.
Self-employment and income tax, 2026 · single · Illinois
$18,800.33 in tax on $75,000 of profit
Set aside 22.1% of each payment you receive. You keep $56,199.67 of your profit.
Your tax for 2026
| Self-employment tax (Social Security and Medicare) | $10,597.16 |
|---|---|
| Federal income tax | $4,897.74 |
| Illinois tax | $3,305.43 |
| Total | $18,800.33 |
| Effective rate (share of your profit) | 25.1% |
Quarterly estimated payments
| Due by | To the IRS |
|---|---|
| April 15, 2026 | $3,873.72 |
| June 15, 2026 | $3,873.72 |
| September 15, 2026 | $3,873.72 |
| January 15, 2027 | $3,873.72 |
Illinois: about $826.36 a quarter, paid to the state on its own schedule.
How it was worked out
| Income (what clients paid you) | $85,000.00 |
|---|---|
| Business expenses | −$10,000.00 |
| Net profit | $75,000.00 |
| Net earnings (92.35% of profit) | $69,262.50 |
| Social Security (12.4% up to $184,500) | $8,588.55 |
| Medicare (2.9%) | $2,008.61 |
| Self-employment tax | $10,597.16 |
| Half of self-employment tax, deducted | −$5,298.58 |
| Adjusted gross income | $69,701.42 |
| Standard deduction (single) | −$16,100.00 |
| QBI deduction | −$10,720.28 |
| Taxable income | $42,881.13 |
| Federal income tax (top bracket 12%) | $4,897.74 |
| Illinois tax | $3,305.43 |
- The QBI deduction is limited to 20% of your taxable income before it.
- Illinois tax on the same income as the federal return: an estimate.
An estimate, not a filed return or tax advice.
How is self-employment tax worked out?
Self-employment tax
- It is Social Security and Medicare for people who work for themselves: 12.4% plus 2.9%, 15.3% in all, on 92.35% of your net profit.
- Social Security stops at $184,500 of earnings, counting any W-2 wages first. Medicare has no limit, and 0.9% more is owed on earnings over $200,000 ($250,000 married filing jointly), counting W-2 wages first.
- No self-employment tax is due if net earnings are under $400.
- Half of the self-employment tax (not the extra 0.9%) is deducted from your income for income tax.
The QBI deduction (qualified business income)
- 20% of your profit (after the half of self-employment tax) comes off taxable income, but never more than 20% of your taxable income before it. You get it with the standard deduction.
- Above $201,750 of taxable income ($403,500 married filing jointly), the wage and property limits and the rules for specified service businesses (health, law, accounting, consulting, financial services, performing arts, athletics and others) apply, in full from $276,750 ($553,500). We assume the business pays no W-2 wages and owns no business property, as most 1099 work does.
- New for 2026: with at least $1,000 of qualified business income from a business you actively run, the deduction is at least $400.
Quarterly estimated tax
- You generally pay estimated tax if you expect to owe $1,000 or more after withholding. For 2026 the four payments are due April 15, 2026, June 15, 2026, September 15, 2026 and January 15, 2027.
- To avoid a penalty, pay at least 90% of this year’s tax or 100% of last year’s (110% if last year’s adjusted gross income was over $150,000), whichever is smaller.
- With a W-2 job too, you can instead ask your employer to take more tax out of your pay (a new Form W-4).
A worked example, by hand
Self-employment tax is 15.3% of 92.35% of your profit. A single freelancer in Illinois with $85,000 of income and $10,000 of expenses owes about $18,800.33 for 2026: $10,597.16 of self-employment tax, $4,897.74 of federal income tax and $3,305.43 of Illinois tax. That is 22.1% of every payment to set aside.
- Profit: $85,000 of income less $10,000 of expenses = $75,000.00.
- Net earnings: 92.35% × $75,000.00 = $69,262.50.
- Self-employment tax: Social Security 12.4% × $69,262.50 = $8,588.55, plus Medicare 2.9% × $69,262.50 = $2,008.61. Total $10,597.16.
- Half of it is deducted: $5,298.58. Adjusted gross income $75,000.00 − $5,298.58 = $69,701.42.
- QBI deduction: after the $16,100 standard deduction, $53,601.42 is left. 20% of qualified business income ($69,701.42) is $13,940.28; 20% of $53,601.42 is $10,720.28. The smaller, $10,720.28, comes off: taxable income $42,881.13.
- Federal income tax: 10% × $12,400.00 + 12% × $30,481.13 = $4,897.74.
- Illinois tax: 4.95% × ($69,701.42 − $2,925.00 of deductions and exemptions) = $3,305.43.
- Total: $18,800.33, or 22.1% of the $85,000 you were paid. Paid to the IRS in four parts: $3,873.72 by each of April 15, 2026, June 15, 2026, September 15, 2026 and January 15, 2027.
The result panel above starts on this example, line by line.
What about state tax on self-employment income?
Every state with an income tax taxes self-employment income. The calculator runs the same state engine as our paycheck calculator on your adjusted gross income, for all 50 states and DC, with Maryland and Indiana county tax and New York City’s tax.
- State paid leave, disability and unemployment contributions, and California SDI, come out of employees’ pay. None is charged on your self-employment income here; if you have a W-2 job, they stay on your wages.
- Colorado, Iowa and North Dakota start from federal taxable income, so the federal QBI deduction lowers their tax too, and we take it off first. Montana adds it back.
- Everywhere else, it is the state’s tax on the same income as the federal return: an estimate. Local business taxes are not included.
In the example, Illinois: Illinois tax on the same income as the federal return: an estimate.
What does this estimate leave out?
- It is an estimate, not tax advice and not a filed return.
- The self-employed health insurance deduction and retirement plans (SEP, solo 401(k)), which lower income tax but not self-employment tax.
- Credits (the earned income credit, the child tax credit and others), itemized deductions, investment income and any other income besides the business and one W-2 job.
- A loss: if your expenses are more than your income, we show no tax, but a loss can also lower the tax on other income.
- A spouse’s own self-employment income: on a joint return each spouse pays self-employment tax on their own net earnings. Enter one person’s business.
- Above the QBI threshold, a business that pays W-2 wages or owns business property (it can get a bigger deduction); we assume neither.
- Local taxes on business income (city taxes in Ohio and Pennsylvania, New York City’s tax on unincorporated businesses and others), and state estimated tax dates.
From our other free tools
Selling online? The platform’s fees come off before your profit. Our sister site, My Fee Calculator, works them out:
- eBay fee calculator Every eBay seller fee by category, and your profit on a sale.
- Etsy fee calculator Listing, transaction and payment fees on an Etsy sale.
- PayPal fee calculator The fee on a client’s payment, and what to charge to receive a set amount.
- Seller profit tracker Log your sales; get Schedule C style totals for tax time.
What else can I work out?
- 1099 tax calculator How much tax to set aside from 1099 income in 2026: self-employment tax, federal and state income tax, with or without a W-2 job, and your four quarterly payments.
- S corp tax calculator Would an S corporation lower your tax? Self-employment tax against a salary and distributions, with the QBI deduction, running costs and break-even profit.
- Overtime calculator Work out overtime pay: time and a half over 40 hours a week, daily overtime in California, Alaska, Nevada and Colorado, and your take-home pay after tax in every state.
- Paycheck calculator 2026 Take-home pay per paycheck in all 50 states and DC, with 401(k), HSA and every pay schedule.
- Tax refund calculator 2026 Your federal refund on wages, with the new deductions for tips, overtime, seniors and car loan interest.
How Social Security and Medicare work for employees: our guide.
Questions about self-employment tax
What is the self-employment tax rate for 2026?
15.3%: 12.4% for Social Security on net earnings up to $184,500 and 2.9% for Medicare on all of them, plus 0.9% over $200,000 ($250,000 joint). Net earnings are 92.35% of your profit, so on $75,000 of profit it is $10,597.16.
Why is self-employment tax on 92.35% of profit?
An employer pays half of Social Security and Medicare (7.65%) and deducts it as a business cost. The self-employed get the same treatment: the tax is worked out on 92.35% of profit, which is 100% less 7.65%.
Can I deduct self-employment tax?
Half of it, from your income for income tax: in our example $5,298.58. It does not lower the self-employment tax itself.
Do I pay self-employment tax if I also have a W-2 job?
Yes, on your business profit. But your wages count first toward the $184,500 Social Security limit, so a well-paid job leaves less of your profit subject to the 12.4%. Medicare's 2.9% applies to all of it. Add your wages in the calculator to see it.
What is the QBI deduction?
The qualified business income deduction: 20% of your business profit (less the half of self-employment tax) comes off your taxable income, limited to 20% of taxable income. Under $201,750 of taxable income ($403,500 joint) most people get it in full. In our example it is $10,720.28.
When are quarterly estimated taxes due for 2026?
April 15, 2026, June 15, 2026, September 15, 2026 and January 15, 2027. You generally need to pay if you expect to owe $1,000 or more. In our example that is $3,873.72 each time to the IRS, plus Illinois tax of about $826.36 a quarter, paid to the state on its own schedule.