Self-Employed Tax Calculator 2026

A common rule of thumb is 25–30% of net income (after expenses) for federal taxes alone, or 30–35% if you're in a high-tax state. More precisely, use this calculator to find your effective rate — then set aside that percentage of every payment you receive. If your effective rate is 24%, set aside 24% of each invoice the day it arrives. Keeping it in a separate savings account avoids the temptation to spend it before quarterly tax time.

The self-employment tax rate is 15.3%, composed of 12.4% for Social Security and 2.9% for Medicare. However, it only applies to 92.35% of net SE income (a built-in adjustment equivalent to the employer's share being deductible). Social Security applies only up to the $184,500 wage base in 2026; Medicare applies to all income, with an additional 0.9% on net SE income above $200,000 (single) or $250,000 (married filing jointly). You can deduct 50% of the SE tax from your AGI, which partially offsets the burden.

Self-employed workers can deduct: business expenses (equipment, software, supplies, subscriptions, business travel, professional services), home office using the simplified method ($5/sq ft up to 300 sq ft = max $1,500) or actual expense method, vehicle use ($0.725/mile standard mileage rate for 2026, or actual expenses), self-employed health insurance premiums, SEP-IRA or Solo 401(k) contributions (up to 25% of net SE income or $70,000), and 50% of self-employment tax. These deductions reduce both SE tax and income tax.

The simplified method allows you to deduct $5 per square foot of your home office (up to 300 sq ft = max $1,500 deduction) if the space is used regularly and exclusively for business. The actual expense method deducts a proportional share of your mortgage/rent, utilities, and home insurance based on the office's percentage of total home area — more complex but often larger. The deduction reduces your net SE income, saving you both SE tax and income tax on that amount.

The IRS standard mileage rate for 2026 is $0.725 per mile (72.5 cents) for business use of a vehicle, as announced in IRS IR-2025-128 on December 29, 2025. To use it, keep a log of business miles driven throughout the year. The standard rate is simpler than the actual expense method — you multiply total business miles by $0.725 and deduct the result as a business expense, reducing both SE tax and income tax.

Self-employed workers who expect to owe $1,000 or more in federal taxes must make quarterly estimated payments to avoid underpayment penalties. The 2026 due dates are April 15, June 16, September 15, and January 15, 2027. Pay online at IRS.gov/DirectPay or via EFTPS. Most states with income taxes have parallel quarterly requirements — check your state's department of revenue for due dates and payment methods.

Yes — self-employed individuals can deduct 100% of health insurance premiums for themselves and their family as an adjustment to income on Form 1040, reducing AGI. This deduction is not limited to itemizers and is taken separately from Schedule C. The deduction is limited to your net profit from self-employment and cannot exceed your earned income from self-employment.

A SEP-IRA (Simplified Employee Pension Individual Retirement Account) allows self-employed workers to contribute up to 25% of net self-employment income, capped at $70,000 for 2026. Contributions are deducted from your AGI, reducing both income tax and, to a lesser extent, state taxes. Unlike a regular IRA, SEP-IRA contributions can be made up to the tax filing deadline including extensions, meaning you can make a contribution in 2027 for the 2026 tax year. A Solo 401(k) offers similar limits with the addition of employee deferrals.