Money Mechanics
Earning online is only half the problem. This cluster covers the other half: what to charge, what it costs you, what tax you owe on the profit, and when it has to be paid. Every calculator shows its formula, states its assumptions and links to the primary source behind each number.
Tax year modelled
2026
SE tax rate
15.3%
of 92.35% of net profit
Social Security wage base
$184,500
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Taxes on self-employed income
Self-employed income is taxed twice over: self-employment tax on your net earnings and federal income tax on your taxable income. Understanding them separately is what makes the total predictable.
- Self-employment tax calculatorThe Schedule SE portion in isolation, with the wage base and Additional Medicare threshold shown.
- 1099 tax calculatorBoth taxes together, plus withholding, safe-harbour targets and a monthly set-aside.
- 1099 vs W-2Employee vs contractor taxes compared, with an interactive take-home breakeven tool.
- W-9 vs W-4Which form each work arrangement uses and what it triggers for withholding.
- Quarterly estimated taxesWho must pay, the four deadlines, how to pay, and how penalties are actually calculated.
Pricing your work
Pricing is where tax, expenses and capacity meet. A rate that ignores unbillable hours or the tax set-aside produces a business that looks busy and pays badly.
- Freelance rate calculatorDerive the hourly, day, retainer and project floor from your income target and real utilization.
- How to price freelance workHourly, fixed-scope, value-based and retainer models — when each fits and how to move between them.
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Costs and expenses
Expenses reduce both taxes because both are calculated on profit, but only real, documented costs count. Building the list before you spend is cheaper than reconstructing it in April.
Income planning and reality checks
Before any of the above matters, the income assumption has to be plausible. These resources exist to keep plans grounded in evidence rather than in screenshots.
- Realistic income modelWhat ranges are plausible by route and time invested, and why headline figures mislead.
- Savings runway calculatorHow long your savings fund the transition.
- Freelance readiness checkWhether the skill, pipeline and buffer are in place yet.
- Our methodologyHow these tools are built, which sources we use, and what we deliberately do not model.
How the pieces connect
These four areas are not independent, and treating them separately is what produces uncomfortable surprises. Your expense list feeds the tax calculators, because both self-employment tax and income tax are charged on profit rather than revenue. The tax result feeds your rate, because the set-aside is part of what each billable hour has to cover. Your rate and capacity feed the income plan, because a rate only produces the target income at a utilization you can sustain. And the income plan determines whether quarterly payments apply at all.
A practical order of operations for someone starting out: estimate costs, set a rate that covers costs plus a tax set-aside plus a buffer, track profit as it accrues, and pay estimated tax quarterly once your expected liability crosses the $1,000 threshold. Each step has a tool above, and each tool states what it excludes so you know where professional advice is needed.
If you are earlier than that — still choosing a route — start with the main pillar guide and the realistic income model, then come back here once there is income to plan around.
Primary sources used across this cluster
- IRS — Tax inflation adjustments for tax year 2026 (incl. OBBB amendments)
- IRS Revenue Procedure 2025-32 (2026 inflation-adjusted amounts, PDF)
- SSA — Contribution and benefit base (Social Security taxable maximum)
- IRS — Self-employment tax (Social Security and Medicare taxes)
- IRS — Questions and answers for the Additional Medicare Tax
- IRS — Estimated taxes
- IRS Publication 505 — Tax Withholding and Estimated Tax
- IRS — Qualified business income deduction (Section 199A)
Rates, thresholds and deadlines are stored in a single dated configuration file and reviewed when the IRS publishes new inflation adjustments, so no figure on this page is hardcoded into page copy.