💼 Self-Employed Income Calculator 2026
Calculate Net Profit, Self-Employment Tax & Take-Home Pay
📊 Understanding Self-Employed Income
The self-employed income calculator 2026 helps freelancers, 1099 contractors, gig workers, and small business owners determine their true take-home pay after taxes. Unlike W-2 employees who have taxes withheld, self-employed individuals must calculate and pay their own taxes—including the 15.3% self-employment tax (Social Security + Medicare) plus federal income tax. This calculator walks you through gross revenue, deductible business expenses, net profit (Schedule C), SE tax calculation, and federal income tax to show your actual take-home pay. Whether you're a graphic designer, consultant, rideshare driver, or independent contractor, understanding your true income helps you set rates, budget for quarterly taxes, and plan for retirement. Know your numbers before tax season surprises you!
📝 How to Use the Self-Employed Income Calculator
- Enter your gross revenue: Input total annual income from all clients, customers, and 1099-NEC forms before any deductions.
- Select your filing status: Choose Single, Married Filing Jointly, or Head of Household. This determines your standard deduction and tax brackets.
- Add business expenses: Enter deductible expenses by category: home office, equipment, software, travel, professional services, and other business costs.
- Include retirement contributions: Add SEP-IRA or Solo 401(k) contributions (up to 25% of net profit, max $69,000) to reduce taxable income.
- Add health insurance: Enter self-employed health insurance premiums—these are fully deductible above-the-line.
- Click "Calculate Take-Home Pay": View your net profit, self-employment tax, federal income tax, and actual take-home amount.
📐 Self-Employed Income Formula & Calculation Method
Net Profit (Schedule C)
Your net profit is reported on Schedule C and represents your taxable self-employment income. All ordinary and necessary business expenses reduce this amount.
Self-Employment Tax Base
The IRS only taxes 92.35% of net profit for SE tax—this mirrors the employer's share of FICA taxes that W-2 workers don't pay on.
Self-Employment Tax
The 15.3% covers both employer and employee portions: 12.4% for Social Security (up to $168,600 cap) and 2.9% for Medicare (no cap). Additional 0.9% Medicare applies above $200K.
Take-Home Pay
Your actual take-home is net profit minus all taxes. Note: you can deduct 50% of SE tax when calculating income tax, reducing your overall burden.
📊 Self-Employed Income Examples
Example 1: Part-Time Freelancer
Scenario: Lisa does freelance graphic design on evenings/weekends, earning $30,000 with $5,000 in expenses.
Inputs: Revenue: $30,000 | Expenses: $5,000 | Status: Single | No retirement
- Net Profit: $30,000 − $5,000 = $25,000
- SE Tax Base: $25,000 × 92.35% = $23,088
- SE Tax: $23,088 × 15.3% = $3,532
- SE Deduction: $3,532 × 50% = $1,766
- Taxable: $25,000 − $1,766 − $14,600 = $8,634
- Income Tax: $8,634 × 10% = $863
Result: Take-Home: $25,000 − $3,532 − $863 = $20,605/year ($1,717/mo)
Example 2: Full-Time Consultant
Scenario: Marcus is a marketing consultant earning $100,000 with $15,000 business expenses and $6,000 SEP-IRA.
Inputs: Revenue: $100,000 | Expenses: $15,000 | SEP-IRA: $6,000 | Status: Single
- Net Profit: $100,000 − $15,000 = $85,000
- SE Tax: $85,000 × 0.9235 × 0.153 = $12,012
- SE Deduction: $6,006
- AGI: $85,000 − $6,006 − $6,000 = $72,994
- Taxable: $72,994 − $14,600 = $58,394
- Income Tax: $8,399
Result: Take-Home: $85,000 − $12,012 − $8,399 = $64,589/year ($5,382/mo)
Example 3: High-Earning Contractor
Scenario: Jennifer is an IT contractor earning $200,000 with $25,000 expenses, $20,000 SEP-IRA, $12,000 health insurance.
Inputs: Revenue: $200,000 | Expenses: $25,000 | SEP-IRA: $20,000 | Health: $12,000 | Status: MFJ
- Net Profit: $200,000 − $25,000 = $175,000
- SE Tax: $175,000 × 0.9235 × 0.153 = $24,728
- SE Deduction: $12,364
- AGI: $175,000 − $12,364 − $20,000 − $12,000 = $130,636
- Taxable: $130,636 − $29,200 = $101,436
- Income Tax: $13,176
Result: Take-Home: $175,000 − $24,728 − $13,176 = $137,096/year ($11,425/mo)
📊 Self-Employment Tax Rates Reference Table 2026
| Tax Component | Rate | Wage Base Limit | Notes |
|---|---|---|---|
| Social Security (OASDI) | 12.4% | $168,600 | Stops at wage base cap |
| Medicare (HI) | 2.9% | No limit | Applies to all SE income |
| Additional Medicare | 0.9% | Over $200K (Single) | High-income surcharge |
| Total SE Tax | 15.3% | Up to SS cap | Applied to 92.35% of net |
| SE Tax Deduction | 50% | N/A | Above-the-line deduction |
Source: IRS - Self-Employment Tax
💡 Important Tips for Self-Employed Income
- Track Everything: Use apps like QuickBooks, FreshBooks, or Wave to track income and expenses. Missing deductions is the biggest tax mistake self-employed people make.
- Quarterly Payments: If you expect to owe $1,000+, make estimated payments (Apr 15, Jun 15, Sep 15, Jan 15) to avoid underpayment penalties of 8%+.
- SEP-IRA: Contribute up to 25% of net SE income (max $69,000) to a SEP-IRA. It reduces taxable income AND builds retirement savings.
- Home Office: Use the simplified method ($5/sqft, max 300 sqft = $1,500) or actual expenses. Must be "regular and exclusive" business use.
- Health Insurance: Self-employed health premiums are 100% deductible above-the-line—don't miss this valuable deduction!
- Keep Records: Maintain receipts and records for 7 years. Digital copies are acceptable for IRS audits.
❓ Frequently Asked Questions
🔗 Related Calculators
15.3% SE tax only
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Income tax brackets
Social Security/Medicare
Net pay calculator
Business entity taxes
SEP-IRA planning
📚 Official IRS Resources
- IRS - Self-Employment Tax
- Schedule C (Profit or Loss)
- Schedule SE (Self-Employment Tax)
- Form 1040-ES (Estimated Tax)
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Last Updated: January 2026 | Tax Year 2026