Free tool · 2026 tax year
Self-employment tax calculator
Estimate the self-employment tax and federal income tax on your 2026 freelance or 1099 income. You'll see how much of each dollar to set aside and what to pay each quarter, based on the IRS's 2026 figures.
Set aside about 20.8% of your profit: $16,647 in federal tax
How it's worked out
2026 federal figures from IRS Revenue Procedure 2025-32 and the Social Security Administration's 2026 wage base, checked September 2026. An estimate to plan with, not tax advice. State tax is not included.
How self-employment tax works
Self-employment tax is Social Security and Medicare for people who work for themselves. It's 15.3%: 12.4% for Social Security and 2.9% for Medicare, charged on 92.35% of your net profit. For 2026, the Social Security part stops at $184,500 of combined wages and self-employment earnings. Medicare has no cap, and an extra 0.9% applies above $200,000 ($250,000 if married filing jointly). You only owe it if your net earnings from self-employment reach $400.
1099 income and income tax
Self-employment tax comes on top of regular income tax. Two things soften it. You deduct half of your self-employment tax when working out income tax. Most freelancers can also take the qualified business income deduction, worth up to 20% of their business profit, below $201,750 of taxable income ($403,500 if married filing jointly). The calculator applies the 2026 brackets and standard deduction ($16,100 single, $32,200 joint, $24,150 head of household).
A worked example
A single freelancer with $80,000 of profit in 2026 and no other income owes about $11,304 in self-employment tax and $5,344 in federal income tax. That's $16,647 in total, or about 21% of profit, or roughly $4,162 a quarter. At $120,000 of profit the share rises to about 24%. Most states add their own income tax on top.
What this doesn't include
State and local taxes, tax credits such as the child tax credit, and deductions beyond the standard deduction aren't included. Neither are retirement contributions (a SEP IRA or solo 401(k) can cut both taxes substantially) and the self-employed health insurance deduction. It assumes you have no employees for the business income deduction. It's an estimate to plan with, not tax advice, so check anything important with a tax professional.
Know what you've earned
The number that matters is what you've actually been paid this year. A free RivitPay account keeps every invoice you send and marks it paid when the money arrives, so your year-to-date income is always one glance away. Paid in 1099s from brands? Many clients won't send one, and your own records are what count.
Frequently asked questions
What is the self-employment tax rate for 2026?
15.3% on 92.35% of your net self-employment profit: 12.4% for Social Security on combined earnings up to $184,500, and 2.9% for Medicare with no cap. An additional 0.9% Medicare tax applies above $200,000, or $250,000 for married couples filing jointly.
How is self-employment tax calculated?
Multiply your net profit by 92.35% to get your net earnings from self-employment, then apply 12.4% up to the Social Security wage base and 2.9% to all of it. On $80,000 of profit that's about $11,304.
Do I pay self-employment tax and income tax?
Yes. Self-employment tax covers Social Security and Medicare, and income tax is charged separately. Half of your self-employment tax is deducted when working out your income tax.
How much of my 1099 income should I set aside for taxes?
For federal tax alone, many freelancers need roughly 20% to 25% of profit, depending on income and filing status. Add your state's income tax on top. Use the calculator with your own numbers for a closer figure.
Do I owe self-employment tax if I earn under $400?
No self-employment tax is due if your net earnings from self-employment are under $400, though you may still need to file a return for other reasons.