Take-home pay at different profit levels
| Net profit | Total tax | Take-home | Effective rate |
|---|---|---|---|
| Enter your numbers above to see this table. | |||
How to use this calculator
- Enter your expected net profit for 2026: income minus business expenses.
- Choose your filing status.
- Optionally add a state tax rate. State rules vary a lot, so this is a simple flat estimate. Nine states have no tax on wages and earned income; check your own state's revenue department.
How it's calculated
2026 standard deduction: $16,100 single or married filing separately, $32,200 married filing jointly, $24,150 head of household.
Worked example
Jamie is single with $80,000 net profit and lives in a state with no income tax.
Jamie keeps $63,352.53, about $5,279 a month. Total federal tax is 20.8% of profit, even though Jamie is in the 12% bracket, because self-employment tax applies from the first dollar.
What this calculator doesn't cover
- Other income (W-2 wages, investments), itemized deductions and tax credits such as the Child Tax Credit.
- The QBI deduction above the 2026 threshold, and the self-employed health insurance and retirement deductions.
- Exact state and local taxes. The state figure is a simple flat estimate.
Frequently asked questions
How much should I set aside for taxes as a freelancer?
Use the effective tax rate this calculator shows, plus your state tax. Many freelancers set aside 25–30% of every payment and adjust once they know their numbers.
What is the QBI deduction?
The qualified business income deduction lets many self-employed people deduct up to 20% of their business income. Below the 2026 threshold ($201,750, or $403,500 married filing jointly) the calculation is simple, and this calculator includes it.
Why is my effective rate higher than my tax bracket?
Your bracket is for income tax only. Self-employment tax of about 15.3% is added on top, from your first dollar of profit.
Sources (tax year 2026): IRS 2026 inflation adjustments, Rev. Proc. 2025-32, IRS self-employment tax.