Self-Employment Tax Calculator: Freelance & Contractor Income (2026)
When you work for yourself, taxes aren't automatically withheld — and you pay more than employees do. Freelancers and contractors owe self-employment tax (15.3%) on net earnings on top of income tax. These free calculators estimate your true after-tax take-home from self-employed income, side work, and contractor vs employee comparisons.
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Self-employment tax calculators (2026)
- After-tax self-employed income calculator Estimate net income from freelancing or contracting after SE tax (15.3%) and federal + state income tax. Enter gross self-employment income to see your real take-home.
- Contractor vs employee calculator Compare net income as a W-2 employee vs 1099 contractor — accounts for SE tax, employer benefit value, and effective rate differences at the same gross income.
- Side income tax calculator Estimate taxes on freelance, gig, or secondary income added on top of a primary W-2 salary — shows marginal rate impact and quarterly payment estimate.
Self-employment tax reference: what you actually owe (2026)
Freelancers and contractors pay SE tax on net self-employment earnings, plus income tax. Here's a simplified estimate for a single filer with no other income and standard deductions only:
| Net Self-Employment Income | SE Tax (15.3%) | Est. Federal Income Tax | Total Federal Tax | Effective Total Rate | Est. Take-Home |
|---|---|---|---|---|---|
| $20,000 | ~$2,826 | ~$0–$500 | ~$2,826–$3,326 | ~14–17% | ~$16,700–$17,200 |
| $30,000 | ~$4,239 | ~$800–$1,400 | ~$5,000–$5,600 | ~17–19% | ~$24,400–$25,000 |
| $50,000 | ~$7,065 | ~$3,500–$5,000 | ~$10,500–$12,000 | ~21–24% | ~$38,000–$39,500 |
| $75,000 | ~$10,597 | ~$7,500–$9,500 | ~$18,000–$20,000 | ~24–27% | ~$55,000–$57,000 |
| $100,000 | ~$14,130 | ~$13,000–$16,000 | ~$27,000–$30,000 | ~27–30% | ~$70,000–$73,000 |
| $150,000 | ~$18,228 | ~$24,000–$28,000 | ~$42,000–$46,000 | ~28–31% | ~$104,000–$108,000 |
SE tax = net self-employment income × 92.35% × 15.3%. Half of SE tax (7.65%) is deductible from gross income before calculating income tax. Above $176,100, Social Security (12.4%) no longer applies — only Medicare (2.9%). Add state income tax where applicable. Use the after-tax self-employed calculator for a personalized estimate including state tax.
Contractor vs employee: tax rate comparison at $75,000 gross
| Worker Type | Gross Income | FICA / SE Tax | Federal Income Tax | Total Tax (est.) | Take-Home (est.) |
|---|---|---|---|---|---|
| W-2 Employee | $75,000 | $5,738 (7.65%) | ~$9,500 | ~$15,200–$17,500 | ~$57,500–$59,800 |
| 1099 Contractor | $75,000 | $10,597 (15.3% SE) | ~$8,000 | ~$18,500–$20,000 | ~$55,000–$56,500 |
The ~$3,000 gap narrows when contractors can deduct business expenses, home office, health insurance premiums, and retirement contributions. Use the contractor vs employee calculator for a full breakdown including deductions.
Related calculators
- Net hourly wage calculator See your after-tax hourly rate — includes contractor effective rate estimates
- Salary vs hourly calculator Compare after-tax compensation between salaried and hourly/contract positions
- Retirement withdrawal tax calculator Self-employed? Estimate taxes on SEP-IRA or Solo 401k withdrawals
- Gross vs net income guide How taxes reduce gross income — with examples at common earnings levels
Filing taxes as a freelancer or contractor?
Self-employment returns require Schedule C, SE tax, and often quarterly estimated payments. These tools handle all of it:
- TurboTax Self-Employed — Schedule C, SE tax, and quarterly estimates built in
- FreeTaxUSA — handles Schedule C and self-employment tax at low cost
- H&R Block — file with a tax pro for complex contractor or multi-income situations
Affiliate links — we may earn a commission at no cost to you.
Self-employment tax: FAQs
How is self-employment income taxed?
Self-employment income is subject to two taxes: self-employment tax (15.3% on net earnings — covering both employer and employee Social Security and Medicare) plus federal and state income tax on the same income. You can deduct half of the SE tax (7.65%) from gross income before calculating income tax. On $50,000 of net self-employment income, total taxes are typically $10,000–$12,000, leaving take-home of approximately $38,000–$40,000 before state tax.
What is the self-employment tax rate for 2026?
The self-employment tax rate for 2026 is 15.3% on net self-employment earnings up to $176,100 (the Social Security wage base). Above that, only the 2.9% Medicare portion applies with no cap. This covers Social Security (12.4%) and Medicare (2.9%) for both employer and employee shares. You can deduct half of the SE tax (7.65%) from your gross income when calculating income tax, which partially offsets the higher rate.
Do freelancers pay more tax than employees?
Freelancers pay a higher effective rate than employees on the same gross income because they owe the full 15.3% SE tax — employees only pay 7.65% (their employer covers the other half). However, freelancers can deduct the employer-half of SE tax, business expenses, home office costs, and health insurance premiums, which reduce taxable income and partially offset the higher rate. The contractor vs employee calculator shows the full net comparison.
How much self-employment tax do I owe on $50,000?
On $50,000 of net self-employment income: SE tax = $50,000 × 92.35% × 15.3% = approximately $7,065. You deduct half ($3,533) from gross income before calculating income tax, leaving taxable income of approximately $46,467. Federal income tax adds approximately $3,500–$5,000 depending on deductions and filing status. Total federal taxes: approximately $10,500–$12,000. Take-home: approximately $38,000–$39,500 before state tax. Use the after-tax self-employed calculator for a state-inclusive estimate.
Is side income taxed differently?
Side income from freelancing, gig work, or 1099 contracting is taxed as self-employment income if net earnings exceed $400. You owe SE tax (15.3%) plus income tax on top of any W-2 income. Because side income stacks on top of your primary salary, it is taxed at your marginal rate — often 22–32% for moderate earners. Quarterly estimated tax payments are required if you expect to owe $1,000 or more. Use the side income tax calculator to estimate your quarterly obligation.
Do I need to pay quarterly estimated taxes as a freelancer?
Yes. If you expect to owe $1,000 or more in federal taxes from self-employment income, the IRS requires quarterly estimated tax payments — due April 15, June 15, September 15, and January 15. Underpayment can result in penalties. Use the after-tax self-employed calculator to estimate your quarterly obligation, then divide annual estimated tax by four.
What is the difference between contractor and employee net pay?
A $75,000 W-2 employee takes home approximately $57,500–$59,800 after taxes depending on state. A $75,000 1099 contractor takes home approximately $55,000–$56,500 after SE tax and income tax — roughly $3,000–$4,000 less — because they pay both halves of FICA and often lack employer benefits (health insurance, 401k match, PTO). The gap narrows when contractors deduct business expenses and retirement contributions. Use the contractor vs employee calculator for the full breakdown.