1099 Freelancer Tax Calculator — Self-Employment Tax & Quarterly Payment Estimator

What Is Self-Employment Tax?

Self-employment (SE) tax is the self-employed equivalent of FICA taxes that W-2 employees split with their employer. When you work as a freelancer, independent contractor, or sole proprietor, you pay both the employee and employer portions of Social Security (12.4%) and Medicare (2.9%) — totaling 15.3% of your net self-employment income. According to the IRS: Self-Employment Tax, SE tax is calculated on 92.35% of net SE income (not gross), giving you a small built-in adjustment.

The SE tax has two components: Social Security tax at 12.4% on earnings up to the annual wage base ($184,500 for 2026), and Medicare tax at 2.9% on all net SE income with no cap. If your gross income exceeds $200,000 (single) or $250,000 (MFJ), an additional 0.9% Medicare tax applies on the excess. The good news: you can deduct half of your total SE tax from your adjusted gross income, reducing your federal income tax bill.

2026 Federal Income Tax Brackets — Single, MFJ & HOH

After deducting 50% of SE tax, the standard deduction, and the QBI deduction (if applicable), your remaining taxable income is taxed at progressive rates:

Standard deductions (2026): Single $15,000 · MFJ $30,000 · HOH $22,500. These are estimated from IRS inflation adjustments.

Common Freelancer Tax Deductions

Freelancers can reduce their taxable income by deducting ordinary and necessary business expenses. The more you deduct, the lower your SE tax base and federal income tax.

Quarterly Estimated Tax Payments — Deadlines & Safe Harbor

Unlike W-2 employees, freelancers don't have taxes withheld from each paycheck. Instead, you must make quarterly estimated tax payments to the IRS (and usually your state) using Form 1040-ES or IRS Direct Pay.