You’ll need to pay self-employment tax if you make more than $400 in self-employment income. This calculator helps you estimate your payment amount and plan your quarterly payments effectively.

To use it, figure out your net self-employment income. Net self-employment income is your total self-employment earnings minus business expenses and deductions. Simply put, it’s: 

Net self-employment income = 

Self-employed revenue - business expenses

What is self-employment income? 

Self-employment income or revenue is money you make from working for yourself rather than an employer. This includes freelance work, independent contracting, side hustle earnings, and income from the gig economy. 

Any income where taxes aren't automatically withheld and you receive 1099 forms instead of W-2 forms typically counts as self-employment income. 

If your taxes aren't automatically withheld and you receive 1099 forms instead of a W-2, that income typically counts as self-employment income.

Self-employment tax rates

Key thresholds and rates:

• Self-employment tax rate is 15.3%, composed of:
• Social Security: 12.4% (up to $184,500 in 2026)
• Medicare: 2.9% (on all earnings)
• Additional medicare tax of 0.9% applies to income above:
• $200,000 for single/head of household/qualifying widow(er)
• $250,000 for married filing jointly
• $125,000 for married filing separately

Note: You can deduct half of your self-employment tax when calculating your income tax.

How the math works

Say your net self-employment income is $75,000 for the year.

1. Calculate your self-employment tax: Multiply net self-employment income by 92.35% to find your taxable earnings, then apply the 15.3% rate. $75,000 × 0.9235 × 0.153 = $10,597.
2. Find your deduction: Divide the self-employment tax in half. $10,597 ÷ 2 = $5,299.

Your total self-employment tax owed is $10,597. Of that, $5,299 reduces your taxable income as an above-the-line deduction.

When are quarterly estimated taxes due?

You’ll make quarterly tax payments if you expect to owe $1,000 or more in taxes for the year. Estimated self-employment taxes are due quarterly on the following days: 

• April 15: First-quarter income earned from January to March
• June 15: Second-quarter income earned from April through May 
• September 15: Third-quarter income earned from June through August 
• January 15: Fourth-quarter income earned from September through December

If any of the due dates fall on a weekend, it will be observed on the following business day. You can make payments for free online via the IRS Direct Pay. To avoid penalties, pay on time and at least 90% of the tax you owe.

Underpayment Penalties

If you underpay your quarterly estimated taxes, the IRS charges interest on the shortfall rather than a flat penalty fee. The rate is set quarterly at the federal short-term rate plus 3 percentage points, currently 7% annualized as of Q4 2026, and compounds daily until you pay the balance.

Use Form 2210 to calculate any penalty owed, or let the IRS calculate it for you when you file.

Helpful IRS Tools & Resources

Use IRS Form 1040-ES or the Tax Withholding Estimator to estimate payments accurately. 

Payment options:

• IRS Direct Pay: no registration needed
• EFTPS: Schedule payments up to 365 days ahead (requires enrollment).

1099 vs. W-2 income

W-2 employees have taxes withheld and receive benefits, while 1099 contractors manage their taxes and deductions. 1099 workers must pay quarterly taxes and can deduct business expenses. 

Employees have their taxes automatically deducted, and the employer pays half the Social Security and Medicare taxes. Meanwhile, self-employed individuals pay the full Social Security and Medicare tax (15.3%). However, 1099 contractors have more deduction opportunities.