Estimate what you'll actually keep after self-employment tax, federal income tax, state tax, and business costs — based on your hourly rate and hours worked.
When you're paid on a 1099 instead of a W-2, no taxes are withheld from what a client pays you — so the number on the invoice isn't what you actually get to keep. As a self-employed contractor, you're responsible for both halves of Social Security and Medicare tax, plus your own federal and state income tax, usually paid quarterly. This calculator walks through each of those pieces so you can see where your rate actually goes.
Self-employment tax covers Social Security and Medicare — normally split between an employer and employee, but as a contractor you pay both sides. It's calculated on 92.35% of your net profit: 12.4% for Social Security up to the annual wage base, plus 2.9% for Medicare on all net profit. High earners also owe an extra 0.9% Additional Medicare Tax above set income thresholds.
Most self-employed people can deduct 20% of their qualified business income before calculating federal income tax, under the Section 199A pass-through deduction. This calculator applies a simplified version of that deduction — the real rule has income limits and different treatment for certain service businesses, so check your specific situation with a tax professional.
State tax rules vary widely: some states have no income tax at all, others use flat rates, and many use their own bracket systems. This tool uses a flat-rate estimate to keep things simple — for an exact number, use your state's official withholding or estimated tax calculator.