See what to set aside from every invoice.
This self employment tax calculator estimates your 2026 self-employment tax, federal income tax and quarterly estimated payments, then tells you what percentage of every invoice to set aside. Enter what you've invoiced, your business expenses, any W-2 wages and your filing status. It uses the IRS's 2026 figures.
In Australia? Use the sole trader tax calculator.
A single freelancer who invoices $80,000 with $5,000 of expenses owes about $10,597 in self-employment tax and $6,504 in federal income tax for 2026 — $17,101 in total, or 22% of what they invoiced.
Set aside 22% of every invoice. InvoiceSonic logs every invoice you send and shows what you've collected each month — and at tax time there's a one-click CSV export for your accountant.
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $17,700 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 | $17,701 – $67,450 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 | $67,451 – $105,700 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 | $105,701 – $201,750 |
| 32% | $201,776 – $256,225 | $403,551 – $512,450 | $201,751 – $256,200 |
| 35% | $256,226 – $640,600 | $512,451 – $768,700 | $256,201 – $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $640,600 |
Self-employment tax is Social Security and Medicare tax for people who work for themselves. You pay both the employee and employer halves: 12.4% for Social Security and 2.9% for Medicare, a combined 15.3%. It's charged on 92.35% of your net earnings, and only once that figure reaches $400.
Social Security tax stops at the 2026 wage base of $184,500, and any W-2 wages count toward that limit first. Above $200,000 (single or head of household) or $250,000 (married filing jointly), an extra 0.9% Additional Medicare Tax applies. Half of your self-employment tax is deducted before income tax is worked out, then the calculator applies the 2026 standard deduction and federal brackets.
Ordinary and necessary business costs — software, equipment, supplies, business mileage, advertising, contract labor and a home office used regularly and exclusively for work — reduce your net earnings, so they lower both self-employment tax and income tax.
Half of your self-employment tax is also deducted from income before the brackets apply, and this calculator uses the 2026 standard deduction. Itemized deductions, the qualified business income deduction and tax credits are not included, so treat the result as a conservative estimate.
If you expect to owe $1,000 or more when you file, the IRS expects you to pay estimated tax during the year. For the 2026 tax year the four payments are due April 15, 2026, June 15, 2026, September 15, 2026 and January 15, 2027. The calculator's quarterly figure is the tax on your self-employment income divided by four.
Freelancers owe two federal taxes on their profit: self-employment tax and ordinary income tax. To use this as a freelance tax calculator, enter your total client payments as income and your business costs as expenses. State income tax isn't included, so add your state's rate on top if you live in a state that taxes income. In the worked example above, that comes to $17,101 on $80,000 invoiced.
Income on a 1099-NEC is self-employment income, and so are client payments on a 1099-K — personal items you sold or money a friend repaid through the same app aren't, even if they land on the form. Usually no tax has been withheld from either. Enter the total of your 1099s plus any income that wasn't reported on one, since all of it is taxable, then subtract your expenses. If you also have a job, enter your W-2 wages so the Social Security wage base is applied correctly.
Self-employment tax is 15.3% of 92.35% of your net earnings: 12.4% for Social Security up to the wage base and 2.9% for Medicare with no cap. Enter your profit and this SE tax calculator applies the Schedule SE steps below, then deducts half the result from your income before income tax.
1) Net earnings are your income minus business expenses. 2) Multiply by 92.35%. 3) Social Security is 12.4% of that figure, up to $184,500 minus your W-2 wages. 4) Medicare is 2.9% of that figure, with no cap. 5) Add the two to get your self-employment tax, and deduct half of it from your income.
For example: A single freelancer who invoices $80,000 with $5,000 of expenses owes about $10,597 in self-employment tax and $6,504 in federal income tax for 2026 — $17,101 in total, or 22% of what they invoiced.
Set aside the percentage this calculator shows, from every payment as it arrives, in a separate savings account. The common rule of thumb is 25–30%, but the right figure depends on your profit, your filing status and whether you also have a W-2 job, and state income tax comes on top. On this calculator, a single filer with no W-2 job needs 20% of $40,000 invoiced, 24% of $80,000, 26% of $100,000 and 29% of $150,000 for federal tax alone.
The self-employment tax rate for 2026 is 15.3% on the first $184,500 of combined wages and self-employment earnings and 2.9% above that, plus 0.9% Additional Medicare Tax over the threshold for your filing status. Because it applies to 92.35% of net earnings, the effective rate on your profit is about 14.13%.
No. If your net earnings from self-employment (92.35% of your profit) are less than $400, you don't owe self-employment tax. You may still owe income tax on that profit, and you still have to report it.
Yes. Self-employment tax covers Social Security and Medicare and is charged in addition to federal income tax. Half of your self-employment tax is deducted from your income before income tax is worked out, which gives some of it back.
It can. Social Security tax only applies up to $184,500 of combined earnings in 2026, and your W-2 wages use up that limit first. If your wages already exceed it, you only pay the 2.9% Medicare part on your self-employment earnings.
No. It estimates federal self-employment tax and federal income tax with the standard deduction. It doesn't include state or local income tax, the qualified business income deduction, itemized deductions or tax credits. The federal figure is therefore on the high side, but state income tax comes on top of it, so add your state's rate.
The IRS may charge an underpayment penalty, calculated like interest on each quarter you paid too little. Setting aside a percentage of every invoice as it's paid makes the quarterly payments easy to meet.
Ordinary and necessary costs of running your business, such as software, equipment, supplies, business mileage, advertising and a home office used regularly and exclusively for work. Business expenses reduce both self-employment tax and income tax.
Free invoice generator · 1099 contractor invoice template · Self employment invoice template · sole trader tax calculator
General information only, based on IRS and SSA figures for tax year 2026 checked September 2026, and not tax advice. Excludes state tax, the QBI deduction and credits. Check irs.gov or a tax professional for your situation.