Self Employment Tax Estimator
Enter your 1099 or business profit to estimate your 2026 self-employment tax (15.3% on 92.35% of profit), federal income tax after the half-SE-tax and 20% QBI deductions, and how much to pay each quarter to avoid an underpayment penalty.
Self employment tax estimator (2026)
Quarterly estimated payments (Form 1040-ES)
How self-employment tax is calculated
- Net earnings: multiply your net profit (Schedule C line 31) by 92.35%. This mirrors the employer half of payroll tax that an employee never sees. Under $400 of net earnings, there's no SE tax.
- Social Security part: 12.4% of net earnings, but only up to the 2026 wage base of $184,500, minus any W-2 wages that already had Social Security taken out.
- Medicare part: 2.9% of all net earnings. Above $200,000 (single or head of household) or $250,000 (married filing jointly) of combined wages and SE earnings, a further 0.9% Additional Medicare Tax applies.
- Deduct half: half of the 15.3% SE tax is an above-the-line deduction, so it lowers your income tax (not the SE tax itself).
- Income tax: your AGI minus the standard deduction and the 20% qualified business income (QBI) deduction, taxed at the 2026 brackets.
Example: $60,000 profit × 92.35% = $55,410; × 15.3% = $8,478 of self-employment tax, plus income tax on what's left after deductions.
The QBI deduction in 2026
Most sole proprietors can deduct up to 20% of qualified business income (profit minus the SE-tax deduction, self-employed health insurance and retirement contributions), capped at 20% of taxable income. The One Big Beautiful Bill Act made it permanent. Above $201,750 of taxable income ($403,500 joint), the deduction phases down over $75,000 ($150,000 joint) for a business with no employees or property. That's the case this estimator models. Businesses with W-2 employees, and specified service businesses such as law or consulting, follow extra rules. From 2026 there's also a $400 minimum deduction if you have at least $1,000 of QBI from a business you actively run.
Quarterly estimated taxes
The IRS expects tax to be paid as you earn it. You generally owe an underpayment penalty unless withholding plus estimated payments cover the smaller of 90% of this year's tax or 100% of last year's (110% if last year's AGI was over $150,000), or you owe less than $1,000. 2026 payments are due April 15, June 15 and September 15, 2026 and January 15, 2027.
Common questions
How much is self-employment tax in 2026?
15.3% of 92.35% of your net profit: 12.4% Social Security on up to $184,500 of net earnings plus 2.9% Medicare on all of it. On $60,000 of profit that's about $8,478.
How do I calculate 1099 taxes?
Add self-employment tax (15.3% × 92.35% of profit) to income tax on your profit after the standard deduction, half the SE tax and the 20% QBI deduction. Then set aside or pay quarterly.
Do I have to pay self-employment tax if I also have a W-2 job?
Yes, but W-2 wages count toward the $184,500 Social Security cap first, so high earners pay less of the 12.4% part.
When are 2026 estimated tax payments due?
April 15, June 15 and September 15, 2026, and January 15, 2027. Dates that fall on a weekend or holiday move to the next business day.
How much should I set aside for taxes as a 1099 worker?
Use the estimator with your expected profit. Many people with modest profits end up near 20–30% of profit for federal tax, plus state tax.
Sources
- IRS: 2026 inflation adjustments (Rev. Proc. 2025-32), via Journal of Accountancy
- Social Security Administration: 2026 contribution and benefit base
- IRS: Self-employment tax (Social Security and Medicare taxes)
- IRS: Estimated taxes
- IRS: Qualified business income deduction
- Kiplinger: When are estimated tax payments due in 2026?
- Kahn Litwin: 2026 QBI thresholds under the OBBBA
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.