1099 Self-Employment Tax Calculator
Calculate self-employment tax (15.3%), federal income tax, QBI deduction, and quarterly estimated payments for freelancers and 1099 contractors.
Updated 2025-12-15Source: IRS Schedule SE + 2025 federal brackets
Total tax owed
$10,640
Net income after tax: $44,360
Quarterly estimated: $2,660
Breakdown
- Gross income
- $60,000
- Business deductions
- − $5,000
- Net earnings
- $55,000
- SE tax — Social Security (12.4%)
- $6,298
- SE tax — Medicare (2.9%)
- $1,473
- Total SE tax
- $7,771
- Half SE tax deduction
- − $3,886
- QBI deduction (20%)
- − $10,223
- Federal taxable income
- $25,891
- Federal income tax
- $2,868
- Total tax
- $10,640
- Effective tax rate
- 19.34%
Frequently Asked Questions
What is self-employment tax (SE tax)?+
SE tax is the equivalent of FICA taxes for self-employed workers. It's 15.3% total — 12.4% Social Security (on the first $176,100 of net earnings in 2025) plus 2.9% Medicare (on all earnings). W-2 employees only pay half (7.65%); their employer pays the other half. As a 1099 contractor, you pay both halves.
How is SE tax calculated?+
First, multiply your net earnings by 92.35% (this approximates the half-FICA that W-2 workers don't pay). Then apply 12.4% Social Security and 2.9% Medicare to that amount. The IRS gives you a deduction for half your SE tax against federal income tax.
What is the QBI deduction?+
The Qualified Business Income deduction (Section 199A) lets self-employed workers deduct up to 20% of qualified business income from their federal taxable income. Phases out for higher earners and certain specified service trades or businesses.
How much should I set aside for quarterly estimated taxes?+
Rough rule: 25-30% of net earnings. The calculator above gives you a more precise quarterly amount based on your specific income and filing status. Pay by April 15, June 15, September 15, and January 15 to avoid underpayment penalties.
Are business deductions different from QBI?+
Yes. Business deductions (home office, mileage, equipment, software) reduce your gross income to get net earnings — BEFORE SE tax is calculated. QBI is a separate 20% deduction applied AFTER SE tax, against federal income tax only.