Estimated Tax Calculator
Ballpark freelancers’ annual US tax (SE + federal income slice) and a suggested quarterly payment—for planning, not filing.
Calculator
Expected annual profit after business expenses.
W-2, interest, etc. (optional).
Planning shortcut—not full brackets. Adjust to your likely marginal/effective mix.
Results
Estimated annual tax
$27,660.24
Self-employment tax
$11,303.64
Federal income tax (estimate)
$16,356.60
Suggested quarterly payment
$6,915.06
Combined effective rate
34.58%
Total estimated tax ÷ (business + other income)
What this means
If you owe through the year, planning around the quarterly amount shown helps avoid underpayment surprises. This is not a filing substitute.
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Estimated Tax Summary
Estimated tax planning for the self-employed usually means self-employment tax plus income tax. This calculator combines SE tax on net business profit with an assumed federal rate, then divides the total by four for a quarterly ballpark.
Explanation
Estimated annual tax sums SE tax and the federal income tax estimate.
Federal income tax (estimate) applies your assumed rate to business + other income after subtracting the employer-equivalent half of SE tax (a common planning simplification).
Suggested quarterly payment is the annual total ÷ 4.
Business implication: a transparent ballpark beats guessing—and feeds a disciplined reserve habit.
Step-by-step example
Net business income $80,000, no other income, 22% assumed federal rate:
- SE tax ≈ $11,303.64 (on 92.35% × 15.3%)
- Half ≈ $5,651.82
- Federal proxy base ≈ $80,000 − $5,651.82 = $74,348.18
- Federal tax ≈ $74,348.18 × 0.22 ≈ $16,356.60
- Total ≈ $27,660; quarterly ≈ $6,915
Formula
SE tax = Net business × 0.9235 × 0.153
Federal estimate = (Business + Other − SE÷2) × (Federal rate ÷ 100)
Total tax = SE tax + Federal estimate
Quarterly ≈ Total tax ÷ 4
Helpful tips
- Re-run after big clients or slow quarters—estimates should move with income.
- Push the quarterly figure into the Quarterly Tax Reserve Calculator (tax-estimate mode) for monthly transfers.
- Credits, health insurance deductions, and retirement contributions can change real results substantially.
FAQ
Is this the same as Form 1040-ES?
No. Form 1040-ES uses detailed worksheets, prior-year safe harbors, and credits. This calculator is a planning model: SE tax plus a user-assumed federal rate on a simplified base.
What federal rate should I enter?
Start near your expected marginal bracket or a blended effective rate from last year, then adjust. It is intentionally editable so you can scenario-plan.
Does this include state tax?
Not in this version. Add state estimates separately or raise your reserve percentage in the Quarterly Tax Reserve Calculator.
Is this tax advice?
No. Use it to size savings and quarterly ballparks. Confirm filing positions with IRS materials or a qualified tax professional.
Related tools
Key terms
Estimated tax
Definition. Advance payments of income tax (and often self-employment tax) made during the year when withholding is not enough.
In simple terms. The IRS expects tax to be paid as you earn. Freelancers commonly use quarterly estimated payments based on projected profit.
Varies—often based on projected taxable income and prior-year safe harbors
Example. A profitable sole prop with little withholding may send four estimated payments instead of waiting until filing season.
Common mistake. Skipping estimates when you had a large prior-year liability and triggering underpayment penalties.
Related calculators. Estimated Tax Calculator, Quarterly Tax Reserve Calculator
Related terms. Quarterly tax reserve, Self-employment tax
Quarterly tax reserve
Definition. Money set aside during the year so estimated tax payments and year-end balances are less painful.
In simple terms. Independent businesses often owe tax throughout the year. A reserve turns irregular income into a predictable habit instead of a April surprise.
Reserve ≈ expected annual tax ÷ number of set-aside periods (e.g. 4)
Example. If you expect $12,000 of tax for the year, reserving about $3,000 per quarter (or a % of each payout) keeps you closer to current.
Common mistake. Spending every invoice and hoping future months cover last quarter’s tax.
Related calculators. Quarterly Tax Reserve Calculator, Estimated Tax Calculator
Related terms. Estimated tax, Self-employment tax, After-tax income
Self-employment tax
Definition. U.S. Social Security and Medicare taxes paid by self-employed people on net earnings from self-employment.
In simple terms. Employees split FICA with their employer. Freelancers generally pay both sides (with deductions and rules that change—verify with IRS guidance or a tax pro).
Often estimated from net self-employment income × applicable SE tax rates
Example. Many owners reserve roughly 15% of profit as a starting SE-tax ballpark, then refine with real forms and credits.
Common mistake. Only budgeting income tax and forgetting SE tax until quarterly payments are due.
Related calculators. Self-Employment Tax Calculator, Quarterly Tax Reserve Calculator
Related terms. Quarterly tax reserve, Estimated tax, After-tax income
Notes & Assumptions
Educational model inspired by US SE tax structure and estimated-tax planning. See IRS estimated taxes for official requirements.
Last reviewed: July 2026