Self-Employment After-Tax Income Calculator (2026)

Estimate take-home income from self-employment using planning rates you control. The statutory SE-tax rate is 15.3%, but under the regular method it is generally applied to 92.35% of net business profit and is subject to the Social Security wage base. This calculator intentionally uses effective rates so you can model your own situation.

On this page: Calculator · Take-home reference table · SE tax explained · Key deductions · FAQs

Filing a Schedule C business? TurboTax can help prepare self-employment forms and estimated-tax calculations.

For W-2 employee comparison, see the take-home pay calculator. For a contractor vs employee side-by-side, see the contractor vs employee calculator.

Self-employed after-tax income: quick reference table (2026)

These are transparent planning scenarios using an effective SE-tax rate of about 14.13% on net profit plus a flat effective income-tax rate. They are not Form 1040 calculations; use them to choose reasonable calculator inputs, not as a tax return forecast:

Net Profit Est. SE Tax (~14.13%) Income Tax (15% effective) Income Tax (20% effective) Take-Home (15% IT) Take-Home (20% IT)
$40,000~$5,652~$6,000~$8,000~$28,348~$26,348
$50,000~$7,065~$7,500~$10,000~$35,435~$32,935
$60,000~$8,478~$9,000~$12,000~$42,522~$39,522
$75,000~$10,597~$11,250~$15,000~$53,153~$49,403
$80,000~$11,304~$12,000~$16,000~$56,696~$52,696
$100,000~$14,130~$15,000~$20,000~$70,870~$65,870
$120,000~$16,956~$18,000~$24,000~$85,044~$79,044
$150,000~$21,194~$22,500~$30,000~$106,306~$98,806

The ~14.13% SE-tax planning rate equals 92.35% × 15.3% and works only while the full Social Security portion is still applicable. W-2 wages can use part or all of the $184,500 Social Security wage base, and Additional Medicare Tax can apply at higher income. The flat income-tax columns are scenarios, not bracket calculations.

Self-employment tax explained: why contractors pay more than employees

When you're employed by a company, your FICA tax (Social Security + Medicare) is split between you and your employer:

When you're self-employed, you generally bear both halves through SE tax. Schedule SE normally starts by multiplying net profit by 92.35%, then applies the Social Security and Medicare rates. On $80,000 of net profit with no W-2 wages using the Social Security wage base, SE tax is approximately $11,304 for 2026.

The SE tax deduction

Half of the calculated self-employment tax is generally deductible as an adjustment to income. On $80,000 of net profit, SE tax is about $11,304, so the adjustment is about $5,652. Other deductions—including the standard deduction—are separate steps when calculating federal taxable income.

The 0.9% Additional Medicare Tax

Additional Medicare Tax is 0.9% and can apply when Medicare wages, railroad retirement compensation, and self-employment income exceed the filing-status threshold. For a single filer the threshold is $200,000; the calculation can involve both W-2 wages and SE income.

For a W-2 employee comparison at the same gross income, see the take-home pay calculator. For a side-by-side contractor vs employee analysis, see the contractor vs employee calculator.

Key deductions that reduce self-employed tax burden

Self-employed workers have access to several deductions that can significantly reduce taxable income and lower the effective tax rate below the calculator's estimate:

Deduction What It Covers Impact
SE tax deduction Half of the calculated self-employment tax Reduces taxable income — automatically deductible
QBI deduction (Section 199A) Up to 20% of qualified business income Major deduction for eligible self-employed workers below income thresholds
Solo 401(k) / SEP-IRA contributions Overall defined-contribution limit up to $72,000 in 2026, subject to plan and compensation rules Reduces taxable income dollar-for-dollar; deferred to retirement
Self-employed health insurance Premiums for self + family 100% deductible from income tax (not SE tax)
Business expenses Home office, equipment, software, travel, professional services Reduces net profit before SE tax and income tax

The QBI deduction is permanent beginning in 2026 and can be up to 20% for eligible qualified business income, but taxable-income limits and business-type rules can reduce it. Retirement-plan deductions and self-employed health-insurance deductions also have their own eligibility rules. Do not subtract a full 20% automatically when choosing a calculator rate.

These deductions require accurate records and can interact with one another. See the effective tax rate guide for rate concepts, and the IRS QBI guidance for Section 199A eligibility.

Filing self-employment taxes? These tools help

Self-employment returns can involve Schedule C, Schedule SE, QBI, and estimated payments. Tax software can help prepare these items:

TurboTax — handles Schedule C, SE tax, QBI deduction, and 1099 income automatically

FreeTaxUSA — low-cost federal filing for self-employed and 1099 workers

H&R Block — file with a tax professional online or in-person for complex self-employment situations

Affiliate links — we may earn a commission at no cost to you.

Related calculators

Self-employed after-tax calculator: FAQs

How do I calculate self-employed after-tax income?

Start with net business profit after ordinary business expenses. Under the regular SE-tax method, 92.35% of that profit generally becomes net earnings for SE-tax purposes; the 15.3% statutory rate is then applied subject to the Social Security wage base. Half of calculated SE tax is an adjustment to income before federal taxable income is determined. The calculator above is intentionally simpler: it applies the effective income-tax and SE-tax rates you enter directly to net profit, so use it as a planning scenario rather than an exact tax return.

What is self-employment tax?

The statutory SE-tax rate is 15.3%: 12.4% Social Security plus 2.9% Medicare. Under the regular Schedule SE method, it is generally applied to 92.35% of net business profit, not directly to 100% of profit. The Social Security portion is also limited by the annual wage base across W-2 wages and self-employment earnings. Half of the calculated SE tax is generally deductible as an adjustment to income.

Is this calculator accurate for freelancers?

It is a planning calculator, not a tax-return engine. It applies the two effective rates you enter directly to net profit. Actual liability depends on progressive tax brackets, filing status, the half-SE-tax adjustment, QBI eligibility, retirement and health-insurance deductions, state rules, W-2 wages, and credits. Enter net profit after business expenses, then choose effective rates that reflect those factors.

Does this include business expenses?

No. Enter your net profit after deducting business expenses for the most accurate estimate. Business expenses — home office, equipment, software, travel, professional services — reduce your net profit before SE tax and income tax are calculated. If you enter gross revenue without deducting expenses, the calculator will overestimate your tax burden.

Can independent contractors use this tool?

Yes. Independent contractors, freelancers, gig workers, and sole proprietors can use this calculator for planning. Enter net profit after business expenses. For the SE-tax field, about 14.13% is a common starting point when the full Social Security portion applies, because 15.3% is generally applied to 92.35% of profit. Adjust the rate if W-2 wages have already used part of the Social Security wage base or other Medicare rules apply.

How does self-employed take-home pay compare to employee take-home?

A W-2 employee generally has 7.65% Social Security and Medicare withheld while the employer pays a matching share. A contractor generally bears both shares through SE tax, but business expenses reduce net profit and other deductions can reduce income tax. Benefits, paid leave, insurance, equipment, and non-billable time also affect the economic comparison. See the contractor vs employee calculator for a side-by-side cash-income scenario.

What tax rate should I enter for income tax?

Enter an estimated effective income-tax rate on net business profit, not your top federal bracket. The right input depends on filing status, other household income, deductions, QBI, credits, and state/local tax. If you already know your expected federal-plus-state income tax as a percentage of net profit, use that percentage here; otherwise model a few rates rather than treating one generic range as exact.