Free tools for the self-employed and 1099 contractors: estimate your self-employment tax, total tax owed, quarterly estimated payments, and whether an S-corp would save you money.
The four numbers every freelancer needs.
Your SE tax (Social Security + Medicare) and the deductible half.
Open calculator →Total tax on 1099 income, SE tax plus federal income tax.
Open calculator →Your four estimated quarterly payments.
Open calculator →How much an S-corp election could save you.
Open calculator →Work for yourself and you owe the full 15.3% self-employment tax on top of income tax, and the IRS wants it quarterly. These tools turn that into clear numbers so April never surprises you.
Authoritative U.S. government sources for further reading and to verify the figures on this page:
Self-employed individuals pay self-employment (SE) tax of 15.3 percent on net earnings up to the Social Security wage base (around $168,600 for 2024), plus 2.9 percent Medicare tax on earnings above that. On top of SE tax, you also owe regular federal income tax based on your bracket. You can deduct half of your SE tax when calculating income tax. State income taxes may apply as well. The IRS self-employment tax center at IRS.gov explains the full picture.
Your income tax is calculated on net self-employment income after deducting business expenses and half of your SE tax. Federal income tax rates range from 10 to 37 percent depending on your total taxable income and filing status. You may also owe state income tax. Because employers do not withhold taxes for you, the IRS generally requires quarterly estimated tax payments to avoid underpayment penalties. IRS Publication 505 covers estimated taxes in detail.
You cannot fully avoid SE tax on legitimate self-employment income, but you can legally reduce it. Electing S corporation status allows owners to pay themselves a reasonable salary and take remaining profits as distributions, which are not subject to SE tax. Maximizing deductible business expenses lowers net earnings subject to SE tax. Contributing to a SEP-IRA or Solo 401(k) reduces taxable income further. A licensed CPA or tax professional can help you choose the right structure for your situation.
The 30 percent figure is a common rule of thumb for setting aside money, not a fixed rate. The actual total depends on your net profit, filing status, and state taxes. Self-employment tax alone is 15.3 percent on net earnings. Add your federal income tax bracket (10 to 37 percent) and any state income tax, and the combined rate can easily reach 25 to 35 percent or more for moderate earners. Use IRS.gov or a tax calculator to estimate your specific liability.