Self-Employment Tax Calculator 2026
Calculate your net profit, self-employment tax, contributions and quarterly payments. For freelancers, contractors and the self-employed. Free, no sign-up required.
About This Self-Employment Tax Calculator
This free self-employment tax calculator helps freelancers, contractors, sole traders and anyone who earns income outside of traditional employment understand their tax obligations. Enter your annual gross income and deductible business expenses to instantly see your net profit, estimated income tax, mandatory contributions such as CPP, EI, National Insurance or Social Security, and your recommended quarterly instalment payments.
Self-employed individuals face a more complex tax situation than employees because there is no employer to withhold and remit taxes automatically. You are responsible for tracking your own income, calculating what you owe, setting money aside throughout the year, and making instalment payments to the tax authority to avoid interest and penalties at year end.
The calculations in this tool use 2026 rates and thresholds for Canada (federal CPP contributions and estimated federal income tax), the United States (15.3% self-employment tax comprising Social Security and Medicare, plus estimated federal income tax), the United Kingdom (Class 4 National Insurance contributions plus estimated income tax), and Australia (estimated income tax at standard marginal rates). The Worldwide mode lets you enter a custom tax rate for any other country.
These results are estimates for planning purposes only. Actual tax owed depends on your full tax return, including all sources of income, deductions, credits, and circumstances specific to your situation. Always consult a qualified accountant or tax professional before making financial decisions based on these estimates.
Frequently Asked Questions
Self-employment tax refers to the additional tax obligations faced by people who work for themselves rather than an employer. In the United States this specifically means the 15.3% self-employment tax covering Social Security (12.4%) and Medicare (2.9%), which self-employed people pay in full because there is no employer to cover half. In Canada it means paying both the employee and employer portions of CPP contributions. In the UK it means Class 4 National Insurance contributions. These are on top of regular income tax.
Allowable business expenses vary by country but generally include: home office costs (a portion of rent, mortgage interest, utilities proportional to the space used for work), equipment and technology, software subscriptions, professional development and training, travel and mileage for business purposes, professional fees such as accountants and lawyers, advertising and marketing, and business insurance. Personal expenses cannot be deducted. Mixed-use items such as a phone used for both work and personal use can only be partially deducted. Keep receipts and records for all claimed expenses.
Quarterly instalments (called quarterly estimated payments in the US, or instalment payments in Canada) are prepayments of tax made throughout the year rather than in one lump sum at filing time. In Canada, the CRA requires instalments if your net tax owing exceeds $3,000 in the current or either of the two previous years. In the US, the IRS requires quarterly payments if you expect to owe at least $1,000 in taxes. Failing to make required instalments results in interest charges. The calculator shows four equal instalments based on your estimated annual tax owing.
Self-employed Canadians must pay both the employee and employer portions of Canada Pension Plan (CPP) contributions, totalling 11.90% of net self-employment income in 2026, up to the annual maximum pensionable earnings ceiling. There is also a CPP2 enhancement rate of 4% that applies to income between the first and second earnings ceilings. Unlike employed workers whose employer covers half the CPP contribution, self-employed individuals bear the full amount. The good news is that the employer portion of CPP contributions is deductible as a business expense on your tax return.
Yes, once your annual self-employment revenue exceeds $30,000 in any single calendar quarter or over four consecutive quarters, you must register for a GST/HST account with the CRA and begin collecting and remitting GST or HST on your taxable supplies. Even below this threshold, voluntary registration can be beneficial because it lets you claim input tax credits to recover the GST/HST you pay on business expenses. Use our GST/HST calculator to calculate the tax you collect on client invoices.
In the United States, self-employed individuals pay a 15.3% self-employment tax on net earnings up to the Social Security wage base ($168,600 in 2026), plus 2.9% Medicare tax on all earnings above that amount. An additional 0.9% Medicare surtax applies to earnings over $200,000 for single filers or $250,000 for married couples filing jointly. You can deduct half of the self-employment tax from your adjusted gross income, which partially offsets the burden. Quarterly estimated payments are due in April, June, September, and January.