Your income
Enter your estimated annual self-employment income. We'll calculate deductions on the next step.
Self-employment tax: 15.3%
Self-employed individuals pay both the employee and employer portions of Social Security (12.4%) and Medicare (2.9%) taxes — a combined 15.3% on net self-employment income. This is separate from income tax and often catches business owners by surprise.
Quarterly Tax Estimate Calculator
Find out exactly how much to set aside and pay the IRS each quarter — including self-employment tax, income tax, and every deduction you're entitled to.
Why use this calculator?
Self-employed business owners are required to pay taxes four times a year — not once at filing. Miss a payment and the IRS charges penalties on top of what you already owe. Most business owners underpay because they don't account for self-employment tax (15.3%) on top of their regular income tax rate.
This calculator accounts for both, plus the deductions most self-employed people miss — home office, retirement contributions, health insurance premiums, and the SE tax deduction itself. The result is a more accurate quarterly number than most accountants provide in a five-minute conversation.
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How do quarterly estimated taxes work for self-employed business owners?
Who needs to pay quarterly taxes?
Anyone who expects to owe $1,000 or more in federal taxes for the year must make quarterly estimated tax payments. This includes self-employed individuals, freelancers, sole proprietors, partners in partnerships, and S-corp shareholders. If you're not paying quarterly, you're likely building up a large tax bill — and a penalty.
What is self-employment tax?
Self-employment tax is the 15.3% tax that covers Social Security (12.4%) and Medicare (2.9%). When you're employed, your employer pays half of this. When you're self-employed, you pay the full 15.3% yourself. This is often the biggest surprise for new business owners who only plan for income tax.
When are quarterly taxes due?
Quarterly estimated tax payments are due four times a year: April 15 (Q1), June 16 (Q2), September 15 (Q3), and January 15 of the following year (Q4). Missing these deadlines triggers an underpayment penalty, currently around 8% annually on the shortfall.
What deductions reduce quarterly taxes?
Several deductions directly reduce your taxable income and lower your quarterly payments: business expenses, home office deduction, self-employed health insurance premiums, retirement contributions (SEP-IRA, Solo 401k), and you can deduct half of your self-employment tax from your gross income. Most self-employed people miss at least one of these.
What is the safe harbor rule?
The IRS safe harbor rule protects you from underpayment penalties if you pay at least 100% of last year's tax liability (110% if your income exceeded $150,000). This means even if your income grows significantly, you can avoid penalties by basing payments on the prior year's tax bill.
How should I set aside money for quarterly taxes?
A simple rule: set aside 25-30% of every payment you receive into a separate savings account. This covers self-employment tax plus federal and state income tax for most business owners. Your bookkeeper can give you a precise percentage based on your actual income and deductions.