Self-Employed After-Tax Income Calculator (2026)
Estimate how much you actually take home as a self-employed worker, freelancer, or independent contractor after income tax and self-employment tax (SE tax). Self-employed workers pay 15.3% SE tax on top of income tax — significantly more than employees who only pay 7.65% FICA.
On this page: Calculator · Take-home reference table · SE tax explained · Key deductions · FAQs
Total taxes paid: $
Net annual income: $
Net monthly income: $
Effective total tax rate: %
Estimates only. Actual taxes depend on deductions, QBI deduction, retirement contributions, and state tax rules.
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)
Here's estimated take-home for self-employed workers at common income levels, using 15.3% SE tax plus varying income tax rates. Enter your net profit after business expenses, not gross revenue:
| Net Profit | SE Tax (15.3%) | Income Tax (20% rate) | Income Tax (25% rate) | Take-Home (20% IT) | Take-Home (25% IT) |
|---|---|---|---|---|---|
| $40,000 | ~$5,652 | ~$8,000 | ~$10,000 | ~$26,348 | ~$24,348 |
| $50,000 | ~$7,065 | ~$10,000 | ~$12,500 | ~$32,935 | ~$30,435 |
| $60,000 | ~$8,478 | ~$12,000 | ~$15,000 | ~$39,522 | ~$36,522 |
| $75,000 | ~$10,597 | ~$15,000 | ~$18,750 | ~$49,403 | ~$45,653 |
| $80,000 | ~$11,304 | ~$16,000 | ~$20,000 | ~$52,696 | ~$48,696 |
| $100,000 | ~$14,130 | ~$20,000 | ~$25,000 | ~$65,870 | ~$60,870 |
| $120,000 | ~$16,956 | ~$24,000 | ~$30,000 | ~$79,044 | ~$73,044 |
| $150,000 | ~$19,453 | ~$30,000 | ~$37,500 | ~$100,547 | ~$93,047 |
SE tax on $150k is lower because Social Security (12.4%) only applies to the first $176,100 of earnings in 2026, but Medicare (2.9%) applies to all income. At $150k, the full 15.3% applies. Above $176,100, SE tax drops to 2.9% on the excess. Income tax column applies a flat rate to gross — actual income tax is lower because the SE tax deduction (half of SE tax) reduces taxable income first. Use the calculator above for a more precise estimate.
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:
- Employee pays: 7.65% (6.2% Social Security + 1.45% Medicare)
- Employer pays: 7.65% (matching contribution)
- Total FICA: 15.3%
When you're self-employed, there is no employer — you pay both halves. That's 15.3% in SE tax on top of your income tax. On $80,000 net profit, SE tax is approximately $11,304/year — money an employee at the same income doesn't pay out of pocket.
The SE tax deduction
The IRS allows self-employed workers to deduct half of SE tax (7.65%) from gross income when calculating income tax. This partially offsets the double burden. On $80,000 gross: half of SE tax = ~$5,652, which reduces taxable income to ~$74,348 before income tax is applied.
The 0.9% Additional Medicare Tax
Self-employed workers earning above $200,000 (single filer) also owe an additional 0.9% Medicare tax on income above that threshold. This is not matched by any employer contribution — it's entirely the worker's burden.
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 self-employment tax (7.65%) | 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 | Up to ~$70,000/year (2026) | 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 alone can be worth 20% of net income for many freelancers and contractors — at $80,000 net profit, that's up to $16,000 in additional deductions. Combined with a Solo 401(k) contribution and the SE tax deduction, a self-employed worker at $80,000 gross can often reduce effective total tax rate to 25–28%, comparable to a W-2 employee at the same income level.
These deductions require accurate record-keeping and ideally a tax professional or software that handles self-employment specifically. See the effective tax rate guide for how deductions interact with your tax rate.
Filing self-employment taxes? These tools help
Self-employment tax, SE tax deduction, QBI deduction, and quarterly estimated payments all add complexity. These tools handle it automatically:
- 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
- Contractor vs employee calculator Side-by-side: compare after-tax income as a contractor vs W-2 employee
- Side income tax calculator Estimate taxes on freelance or side income on top of W-2 employment
- After-tax hourly rate calculator For contractors — convert gross contract rate to net hourly after SE tax and income tax
- Take-home pay calculator W-2 employee comparison — same salary as an employee after federal and state tax
- Net hourly wage calculator Estimate net hourly pay at any effective tax rate — use 28–35% for contractors
- After-tax paycheck calculator Estimate net pay per check, monthly, and yearly from any gross amount
- Effective tax rate explained Why your effective rate is lower than your bracket — especially important for self-employed workers
Self-employed after-tax calculator: FAQs
How do I calculate self-employed after-tax income?
Self-employed after-tax income = gross income minus SE tax (15.3%) minus income tax on adjusted gross income. The SE tax deduction (half of SE tax) reduces taxable income before income tax applies. At $80,000 gross: SE tax = ~$11,304 · half-SE deduction reduces taxable income to ~$74,348 · income tax at 22% effective = ~$16,357. Total taxes ~$27,661. Net take-home ~$52,339. Use the calculator above for your exact figures.
What is self-employment tax?
Self-employment tax (SE tax) is 15.3% of net self-employment earnings — covering Social Security (12.4%) and Medicare (2.9%). Employees pay only 7.65% because their employer covers the other half. Self-employed workers pay both halves — the full 15.3%. However, you can deduct half of SE tax (7.65%) from gross income when calculating income tax, which partially offsets the burden.
Is this calculator accurate for freelancers?
This calculator provides estimates. Actual taxes depend on business deductions, the QBI deduction (up to 20% of qualified business income for eligible workers), retirement contributions, health insurance premiums, and state income tax. All of these reduce taxable income and lower your actual tax bill below the calculator's estimate. For the most accurate result, enter net profit after business expenses — not gross revenue.
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 to estimate after-tax take-home income. Enter your net profit (revenue minus business expenses) as gross income, then enter your estimated income tax rate and 15.3% as the SE tax rate.
How does self-employed take-home pay compare to employee take-home?
Self-employed workers pay 15.3% SE tax vs the employee's 7.65% FICA share, so the effective total rate is higher at the same gross income. However, self-employed workers can deduct business expenses, half of SE tax, health insurance premiums, retirement contributions, and potentially the QBI deduction — which can significantly reduce taxable income and narrow the gap. At $80,000, a well-optimized self-employed worker can achieve a similar effective total rate to a W-2 employee at the same income. See the contractor vs employee calculator for a side-by-side comparison.
What tax rate should I enter for income tax?
Enter your estimated total effective income tax rate — federal plus state. For most self-employed workers earning $50k–$120k: no-tax states (TX, FL, WA) = 15–20% effective income tax rate. Mid-tax states = 18–23%. High-tax states (CA, NY) = 22–28%. This rate is separate from SE tax (15.3%), which the calculator adds on top. Your combined effective total rate will typically run 30–40% for self-employed workers in most states.