Estimate your self-employment and income tax as a service business owner, including the deductible half of SE tax and quarterly payment targets.
Free to use with no account. When you want to send the result by text, take a card payment, or keep a record of every job, the same numbers carry straight into Glo Invoice.
What self-employment tax covers. Social Security and Medicare on net self-employment income — 15.3% on the first band of earnings, with half of it deductible against income tax.
Worked example. $80,000 of net profit carries roughly $11,300 of self-employment tax, about $5,650 of which is deductible against income tax, plus federal and any state income tax on top.
Quarterly payments. Sole proprietors generally pay estimated tax four times a year. Setting aside 25–30% of every payment received is the habit that prevents an April surprise.
Deductions trades actually miss. Mileage, tools under the expensing limit, phone, software, insurance, and the business-use share of a home office. Keep receipts as you go, not in April.
Frequently asked questions
How much should I set aside for taxes?
Many service-business owners hold back 25–30% of net income. Your bracket, state, and entity type change the number — confirm with your accountant.
Does an LLC lower my taxes?
By itself, usually not — a single-member LLC is taxed like a sole proprietorship. An S-corp election can change the picture, and it has costs and payroll requirements.
Is this tax advice?
No. This is a planning estimate. Verify your situation with a CPA or enrolled agent, and check IRS guidance for current thresholds.
