Self-Employment Tax Calculator
Estimate your self-employment tax (Social Security + Medicare) and total tax burden as a 1099 contractor.
The biggest shock for new contractors? The 15.3% self-employment tax that W-2 employees never see. As a 1099 contractor, you pay BOTH the employee AND employer portions of Social Security and Medicare.
This calculator estimates your total tax burden including self-employment tax, federal income tax, and state taxes. Use it to plan quarterly payments and avoid a nasty surprise in April.
How to Use This Calculator
- Enter your annual net self-employment income (after business deductions)
- Select your filing status (single, married filing jointly, etc.)
- Add any other income (W-2 wages, spouse's income)
- Enter estimated deductions (or use standard deduction)
- Select your state for state tax calculation
- See your total tax liability and quarterly payment amounts
tune Your Income Details
receipt_long Your Tax Estimate
Total Estimated Tax
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Self-Employment Tax
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Federal Income Tax
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State Tax
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Effective Rate
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Q1 (Apr 15)
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Q2 (Jun 15)
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Q3 (Sep 15)
$0
Q4 (Jan 15)
Understanding Contractor Taxes
The Self-Employment Tax Breakdown
- Social Security: 12.4% on first $168,600 (2024)
- Medicare: 2.9% on all earnings
- Additional Medicare: 0.9% on earnings over $200,000
Key Tax Deductions for Contractors
- Vehicle expenses (mileage or actual costs)
- Tools and equipment
- Home office (if applicable)
- Health insurance premiums
- Retirement contributions (SEP-IRA, Solo 401k)
- Business insurance
- Cell phone and internet (business portion)
The Quarterly Payment Schedule
- Q1: April 15
- Q2: June 15
- Q3: September 15
- Q4: January 15 (following year)
Miss these deadlines and you'll owe penalties—even if you pay everything by April 15.
Frequently Asked Questions
Why do contractors pay more tax than employees?
W-2 employees split FICA taxes with their employer (7.65% each). As self-employed, you pay both halves (15.3%). However, you can deduct the employer portion.
Do I have to pay quarterly taxes?
If you expect to owe $1,000+ in taxes for the year, yes. The IRS requires quarterly estimated payments to avoid penalties.
What happens if I don't pay quarterly taxes?
You'll owe an underpayment penalty—typically around 8% annually on the unpaid amount. It's essentially interest on a loan from the IRS.
Can I reduce self-employment tax?
Yes—through an S-Corp election. If you earn over $50-60K, paying yourself a "reasonable salary" and taking the rest as distributions can save thousands in SE tax.