Real estate & rental
Real Estate Agent Tax Calculator
What to set aside from commission for tax, including both halves of self-employment tax.
Result
Not tax advice. Deduction rules, mileage rates and self-employment tax treatment change annually and depend on your entity, your state and the rest of your return. Use this to plan a set-aside, and confirm the actual figures with an accountant before filing anything. This is a simplified estimate using marginal rates rather than brackets, and it ignores the qualified business income deduction, retirement contributions, the Social Security wage cap and any credits, all of which can change the result substantially. Self-employed agents generally must make quarterly estimated payments or face penalties.
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About this calculator
Why is self-employment tax so high?
Because you pay both the employee and employer halves of Social Security and Medicare. An employee sees 7.65% on their payslip; the self-employed pay 15.3%, with half deductible against income tax.
Do I have to pay quarterly?
Generally yes, once you expect to owe a meaningful amount. Missing estimated payments incurs penalties even if you settle in full at filing.
What is the wage cap?
The Social Security portion stops applying above an annual earnings threshold, so high earners pay a lower marginal rate on the excess. This calculator does not model it, which makes it conservative at higher incomes.
The formula
self-employment tax on 92.35% of net earnings, then income tax on net less half the SE tax
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