Paychecks & taxes
Self-Employment Tax Calculator
On $80,000 of net profit from 1099 or freelance work (single filer, Texas, 2026), you'd owe about $18,830 in total tax. That splits into $11,304 of self-employment tax and $7,527 of federal income tax, leaving you with roughly $61,170.
Net profit means what's left after your business expenses. Enter yours below. Self-employment tax is the part employees never see, because their employer normally pays half of it.
$18,830
total tax on $80,000 net profit, single, Texas
Self-employment tax (15.3%)−$11,304
Federal income tax−$7,527
State income tax (TX)$0
You keep$61,170
2026 figures State is an estimate
Where the money goes
- 92.35% of your profit is subject to self-employment tax. On $80,000 that is $73,880.
- Self-employment tax is 15.3% of that: $11,304 ($9,161 Social Security, $2,143 Medicare).
- Half of it, $5,652, is deductible before income tax.
- Federal income tax on what's left comes to $7,527.
A big reason freelancers set aside 25% to 30% of profit for taxes is this combination of self-employment tax and income tax landing together. This is an estimate. It leaves out the qualified business income deduction, retirement contributions and quarterly payments, and it is not tax advice. See the method.
Common questions
How much should a freelancer set aside for taxes?
A common rule is 25% to 30% of net profit. In this example the total tax on $80,000 is 23.5% of profit, which is right in that range once income tax and self-employment tax are both counted.
What is self-employment tax?
It is the freelancer version of FICA. An employee splits Social Security and Medicare with their employer. Working for yourself, you pay both halves, which is 15.3%, though you get to deduct half of it.