Professional services
Tax Calculator
Estimates tax from income and deductions, as a planning figure rather than a return.
Result
Not tax advice, and not a filing calculation. This estimates what to set aside using rates you supply. Brackets, thresholds, deductions, credits and state rules change every year and interact with the rest of your return in ways no single calculator models. Confirm anything that affects a payment or a filing with an accountant. Self-employment tax applies to about 92.35% of net earnings, and half of it is deductible against income tax. The Social Security portion stops above an annual earnings threshold that changes each year; this does not model that cap, so it overstates the tax for higher earners.
Get a Free Business AuditHow the calculation works
Taxable income after deductions is taxed through the applicable brackets, with credits applied against the resulting tax. Where the income is self-employment rather than wages, self-employment tax applies as a separate layer on net earnings and half of it is deductible against income tax.
What moves the number
- Income type, since wages and self-employment are taxed differently.
- Filing status and deductions.
- Credits available.
- State and local tax, outside this estimate.
Where this one goes wrong
The same gross amount produces a different total depending on whether it arrived as wages or as self-employment income, because of the payroll tax treatment, which is why income type is not a detail. Withholding is the other thing a tax estimate does not tell you: the figure here is the tax owed for the year, and whether you owe anything at filing depends on what has already been withheld or paid in estimates. Rates change annually and this is for planning.
Before you quote
- Distinguish wage income from self-employment income.
- Compare the estimate against what has already been withheld or paid.
- Confirm current year rates and thresholds.
Where the rules come from
Questions
About this calculator
Does it matter whether income is wages or self-employment?
Yes, substantially, because self-employment income carries both halves of the payroll tax while wages carry one. The same gross amount produces a different total depending on how it arrived, which is why income type is not a detail.
Is this what I will owe at filing?
No. This is the tax for the year; what you owe at filing is that figure less what has already been withheld or paid in estimates. A large tax for the year can produce a refund, and a modest one can produce a bill.
How accurate is a tax estimate?
Accurate enough for planning and not for filing. Rates and thresholds change annually, state and local tax is not modelled, and deductions, credits and circumstances all change the answer. Use a preparer for a filing position.
The formula
self-employment tax on business earnings, then income tax on total income less deductions and half the SE tax
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How to use this calculator
- Employment income ($). Enter your own figure; the page starts at $45,000.
- Net business income ($). Enter your own figure; the page starts at $40,000.
- Deductions ($). Enter your own figure; the page starts at $14,600.
- Federal marginal rate (%). Enter your own figure; the page starts at 22%.
- State rate (%). Enter your own figure; the page starts at 5%.
- Self-employment tax rate (%). Enter your own figure; the page starts at 15.3%.
The result updates as you type, so you can try a figure, see what it does to still to pay, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Employment income | $45,000 |
| Net business income | $40,000 |
| Deductions | $14,600 |
| Federal marginal rate | 22% |
| State rate | 5% |
| Self-employment tax rate | 15.3% |
| Already withheld or paid | $6,800 |
What comes out
| Result | Value |
|---|---|
| Still to pay main result | $17,097 |
| Total estimated tax | $23,897 |
| Self-employment tax | $5,652 |
| Income tax | $18,245 |
| Effective rate | 28.11% |
Estimated tax is $23,897, made up of $18,245 income tax and $5,652 self-employment tax. After what is already paid, $17,097 remains, an effective 28.11% overall.
How sensitive the answer is
Holding everything else steady and changing only employment income, this is what happens to still to pay. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Employment income ($) | Still to pay |
|---|---|
| $22,500 | $11,022 |
| $33,750 | $14,059 |
| $45,000 example above | $17,097 |
| $67,500 | $23,172 |
| $90,000 | $29,247 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Employment income ($)
- A money amount, starting at $45,000.
- Net business income ($)
- A money amount, starting at $40,000.
- Deductions ($)
- A money amount, starting at $14,600.
- Federal marginal rate (%)
- A percentage, between 0 and 50, starting at 22%.
- State rate (%)
- A percentage, between 0 and 15, starting at 5%.
- Self-employment tax rate (%)
- A percentage, between 0 and 20, starting at 15.3%.
- Already withheld or paid ($)
- A money amount, starting at $6,800.
What the results tell you
| Result | What it is |
|---|---|
| Still to pay | The headline result. A money figure. |
| Total estimated tax | A money figure. |
| Self-employment tax | A money figure. |
| Income tax | A money figure. |
| Effective rate | A percentage. |
Keep going
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