Use this free US self-employment tax estimator to calculate your federal SE tax, income tax, and state tax liability. Enter your revenue, expenses, and tax rates — it shows your total bill, quarterly payment, and how much to set aside monthly. Self-employed contractors pay SE tax on net earnings in addition to federal and state income tax.
Estimate Your Tax Liability
Net Profit$0.00
Self-Employment Tax (15.3%)$0.00
Est. Federal Income Tax$0.00
Total Estimated Tax$0.00
Estimated Take-Home$0.00
Disclaimer: This is an estimate only. Consult a tax professional for your actual liability.
✓ Link copied — share it with your crew
TradeToolCalc calculators are for informational and educational purposes only. Results are estimates based on the inputs you provide and should not be relied upon as financial, legal, or professional advice. Always verify figures with a qualified accountant or business advisor before making pricing or business decisions. TradeToolCalc accepts no liability for decisions made based on calculator outputs.
Free — No sign-up required
Don't lose your numbers.
Close this tab and your breakdown is gone. We'll email it to you — every figure, line by line — ready to drop into a quote or hand to your accountant.
One email with your results. No spam, unsubscribe any time.
Delivered to your inbox
Print or PDF for the books
Your email stays private
We only use your email to send your results. Privacy Policy.
One quick check.
If you see a checkbox below, click it to confirm you're human — this is what sends your results. If nothing appears, you're already done.
Once you see a confirmation message above, your results are on the way.
Sent! Check your inbox.
We've emailed your results to your inbox. Check spam if it's not there in a minute.
Something went wrong.
We couldn't send your results. Please try again.
↓
Take Your Numbers Further
Universal Calculator Bundle — $347
10 professional Excel calculators for any trade. Every number unlocked, so every figure reflects your own business, not someone else's estimate.
WHAT'S INSIDE:
Business Health Check
Markup vs Margin Calculator
Overhead Cost Allocator
Vehicle / Truck Cost Calculator
US Tax Estimator
Employee Cost Calculator
Cash Flow Tracker (print-ready for PDF)
Should I Hire or Subcontract?
Loan / Equipment Finance Calculator
Business Pricing Audit (12-point)
ALSO INCLUDED:
Professional Invoice Template (.docx)
Email Quote Template (ready to copy/paste)
Job Proposal Template (.docx)
Download instantly. Optimised for Excel 2016+. Compatible with Google Sheets for basic use. No subscription. 30-day money-back guarantee — full refund, no questions asked.
Coming Soon
Also available: Trade Calculator Bundles — $197 each
8 professional calculators built for your specific trade. Available for all 10 trades.
Taxes for Self-Employed Contractors — Frequently Asked Questions
Self-employment tax is the combined Social Security (12.4%) and Medicare (2.9%) tax that self-employed people pay — totalling 15.3% on 92.35% of net profit. When you work for an employer, they cover half of this (7.65%) and you cover the other half through paycheck withholding. As a sole proprietor you pay both halves, which is why your effective tax rate is higher than a W-2 employee on the same gross income. You can deduct half of the self-employment tax you pay when calculating your federal income tax, which slightly reduces the income tax bill.
Legitimate deductible business expenses for Contractors typically include: tools and equipment (either expensed under Section 179 or depreciated), vehicle costs (actual expenses or the standard mileage rate), business insurance premiums, work-related phone and internet costs, advertising and marketing spend, professional memberships and Licenses, accounting and bookkeeping fees, materials and supplies used on jobs, and a portion of home office costs if you run your admin from home. Keep receipts and records for everything — the IRS requires documentation for business deductions.
If you expect to owe $1,000 or more in federal tax for the year, the IRS requires you to make quarterly estimated tax payments. The deadlines are typically mid-April, mid-June, mid-September, and mid-January of the following year. You can use IRS Form 1040-ES to calculate the amount due each quarter. Failing to pay enough throughout the year can result in an underpayment penalty even if you settle the full amount by the April filing deadline.
For most Contractors just starting out, a sole proprietorship is simpler — no formation paperwork, no annual fees, and you report income on Schedule C. A single-member LLC offers personal liability protection (separating your personal assets from business debts) but is taxed identically to a sole proprietorship by default. Some Contractors later elect S-corp taxation through their LLC, which can reduce self-employment tax at higher income levels. Talk to an accountant once your net profit consistently exceeds $60,000—$80,000 per year — the S-corp election may save you meaningful money at that point.
A widely used rule of thumb for self-employed Contractors is to set aside 25—30% of every payment received into a dedicated savings account used only for tax payments. At lower profit levels (under $40,000 net) you may need as little as 20%; at higher profit levels ($100,000+) the combined self-employment and income tax can push toward 35% or more. The safest approach is to run your numbers through this estimator, divide your estimated annual tax by 4, and put that amount aside after each quarterly payment cycle rather than at year-end.