Free tools for freelancers and 1099 contractors. Run the numbers on your SE tax, total tax owed, quarterly estimated payments, and whether an S-corp election is worth the paperwork.
Four numbers. That is what it takes to know where you stand on 1099 income.
SE tax (Social Security + Medicare at 15.3%) and the deductible half you get back at filing.
Open calculator →The full bill: SE tax plus federal income tax on 1099 income, in one number.
Open calculator →What to send the IRS each quarter, and when, so penalties stay off the table.
Open calculator →What an S-corp election could save on SE tax once income is high enough to make it worth the cost.
Open calculator →Work for yourself and you cover both halves of the 15.3% FICA bill your employer used to split with you. The IRS collects it quarterly. These tools give you the numbers before April does.
U.S. government sources for further reading and to verify the figures on this page:
SE tax runs 15.3 percent on net earnings up to the Social Security wage base (roughly $168,600 for 2024), then 2.9 percent Medicare on anything above that. Federal income tax comes on top of that, at your bracket rate. You can deduct half your SE tax when calculating income tax, which softens the hit. State income tax may apply as well. The IRS self-employment tax center at IRS.gov has the full rules.
Income tax is calculated on net self-employment income after deducting business expenses and half of your SE tax. Federal rates run from 10 to 37 percent depending on taxable income and filing status. State income tax may apply on top of that. No employer withholds for you, so the IRS generally requires quarterly estimated payments to avoid underpayment penalties. IRS Publication 505 covers the details.
You cannot eliminate SE tax on legitimate self-employment income, but you can reduce it legally. Electing S corporation status lets you pay yourself a reasonable salary and take remaining profit as distributions, which fall outside SE tax. Maximizing deductible business expenses shrinks the net earnings the tax applies to. A SEP-IRA or Solo 401(k) reduces taxable income further. A licensed CPA can help you figure out which structure makes sense for your numbers.
Thirty percent is a rule of thumb for how much to set aside, not an actual rate. Your real total depends on net profit, filing status, and state taxes. SE tax alone is 15.3 percent on net earnings. Add your federal income bracket (10 to 37 percent) and state income tax, and moderate earners often land between 25 and 35 percent combined. The 1099 Tax Calculator on this site or IRS.gov can work out your specific figure.