Self-employed tax planning typically involves two major components: self-employment (SE) tax and income tax. The SE tax covers Social Security and Medicare contributions, while income tax is based on your taxable income after deductions. This calculator estimates both so you can budget accurately throughout the year.
1) Net Profit and SE Tax Adjustment
Self-employment tax is calculated on your net profit after an adjustment that reflects the employer portion of payroll taxes. The IRS uses 92.35% of net profit for SE tax calculations.
SE Taxable Profit = Net Profit × SE Tax Adjustment
2) Self-Employment Tax
Once adjusted, your SE tax is:
SE Tax = SE Taxable Profit × SE Tax Rate
The default rate of 15.3% is common, but you can override it for special cases.
3) Income Tax
Income tax is based on your taxable income after deductions and the deductible portion of SE tax.
Taxable Income = (Net Profit + Other Income − Deductions) − (SE Tax ÷ 2)
Income Tax = Taxable Income × Income Tax Rate
4) Total Estimated Tax
The total estimated tax combines both components:
Total Tax = SE Tax + Income Tax
Example Calculation
Suppose you earned $65,000 in net profit, had $8,000 in other income, and claimed $12,000 in deductions. Using a 15.3% SE tax rate, 92.35% adjustment, and an 18% income tax rate:
This calculator is designed for freelancers, consultants, contractors, and business owners who need a quick estimate of their annual tax liability and quarterly payments. It helps with cash flow planning, setting aside tax savings, and comparing scenarios as income changes.
function formatMoney(value) {
return value.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 });
}
function calculateTaxes() {
var netProfit = parseFloat(document.getElementById("netProfit").value);
var otherIncome = parseFloat(document.getElementById("otherIncome").value);
var deductions = parseFloat(document.getElementById("deductions").value);
var incomeTaxRate = parseFloat(document.getElementById("incomeTaxRate").value);
var seTaxRate = parseFloat(document.getElementById("seTaxRate").value);
var seAdjustment = parseFloat(document.getElementById("seAdjustment").value);
if (isNaN(netProfit) || netProfit < 0) { netProfit = 0; }
if (isNaN(otherIncome) || otherIncome < 0) { otherIncome = 0; }
if (isNaN(deductions) || deductions < 0) { deductions = 0; }
if (isNaN(incomeTaxRate) || incomeTaxRate < 0) { incomeTaxRate = 0; }
if (isNaN(seTaxRate) || seTaxRate < 0) { seTaxRate = 0; }
if (isNaN(seAdjustment) || seAdjustment <= 0) { seAdjustment = 92.35; }
var seTaxableProfit = netProfit * (seAdjustment / 100);
var seTax = seTaxableProfit * (seTaxRate / 100);
var taxableIncome = (netProfit + otherIncome – deductions) – (seTax / 2);
if (taxableIncome 0 ? (totalTax / totalIncome) * 100 : 0;
var quarterlyPayment = totalTax / 4;
var resultHtml = ";
resultHtml += '
Estimated Total Tax: $' + formatMoney(totalTax) + '