Arizona Self-Employment Tax Calculator (2026)
Federal self-employment tax, federal income tax and Arizona state income tax on 1099 income, plus how much to set aside for each estimated payment.
Federal 2026 and Arizona 2025 data checked against the official publications, last on 2026-09-05 Runs in your browser — nothing you type is sent anywhere, not even when you reload or share the link No sign-up Methodology and data status
- Total tax
- $16,082
- Effective rate
- 22.3%
- Set aside per quarter
- $4,021
- After-tax income
- $55,918
| Breakdown | |
|---|---|
| Net profit (income − expenses) | $72,000 |
| Self-employment tax | $10,173 |
| Social Security (12.4%) | $8,245 |
| Medicare (2.9%) | $1,928 |
| Federal income tax | $4,630 |
| Adjusted gross income | $66,913 |
| Standard deduction | −$16,100 |
| Qualified business income deduction (20%) | −$10,163 |
| Taxable income · marginal rate 12.0% | $40,651 |
| Arizona income tax | $1,279 |
| Total federal + state | $16,082 |
Amounts to set aside, not bills: federal $3,701 for each Form 1040-ES installment (Apr 15, Jun 15, Sep 15, Jan 15). Arizona: $320 per installment on its own schedule. For the safe-harbor amount and payments you have already made, use the quarterly calculator with these inputs. Arizona 2026 rates are not yet published; state figures use 2025 rates.
Arizona and self-employment income
Arizona moved to a single 2.5% income tax rate in 2023. Its standard deduction matches the federal amount, so a sole proprietor's Arizona taxable income is close to the federal figure before the QBI deduction, which Arizona does not allow.
Arizona rules used by this calculator (2025)
- Arizona applies a flat 2.5% rate for 2025.
- Standard deduction: $15,750 single, $31,500 married filing jointly, $23,625 head of household — the same as the federal amounts for 2025.
- Each child under 17 adds a $100 credit.
- The dependent credit shrinks by 5% for every $1,000 of income over $200,000 ($400,000 joint).
- A refundable credit of $25 per person on the return at low incomes (up to $12,500 single / $25,000 joint); the calculator applies it.
- Arizona starts from federal AGI, so the deductible half of self-employment tax reduces state income as well.
What an Arizona freelancer may still owe
- Arizona requires quarterly estimated payments (Form 140ES) once you expect to owe $1,000 or more.
- Services are generally not subject to Arizona's transaction privilege tax, but many cities license home-based businesses.
- Applied here: the dependent tax credit and the refundable increased excise tax credit ($25 per person, up to $100, for incomes up to $25,000 joint and head of household or $12,500 single). Arizona has no earned income credit; the small family income tax credit is not included. The 2026 dependent credit rises to $125 per child under 17, not yet reflected.
What Arizona costs at three levels of profit (2026 federal, 2025 Arizona rates)
A single filer with no dependents and no other income, taking the standard deduction. The state column is Arizona's own tax after its deductions, exemptions and credits.
| Net profit | Federal (2026) | Arizona (2025 rates) | Total | Effective rate |
|---|---|---|---|---|
| $50,000 | $9,732 | $768 | $10,500 | 21% |
| $75,000 | $15,495 | $1,349 | $16,844 | 22.46% |
| $100,000 | $22,365 | $1,930 | $24,294 | 24.29% |
At $75,000 of profit, Arizona takes $1,349 — 8.01% of the total tax bill. Change any input in the calculator above to see your own figures.
How the federal part is worked out
Net profit is 1099 income less business expenses (Schedule C). Self-employment tax is 15.3% of 92.35% of that profit — 12.4% Social Security up to $184,500 of combined wages and earnings, 2.9% Medicare on all of it. Half of that tax, the $16,100 standard deduction ($32,200 joint) and the 20% qualified business income deduction come off before the 2026 brackets are applied; the child tax credit and the earned income credit then reduce what is left, and the refundable parts can offset self-employment tax. The methodology page sets out the full sequence and every rule the calculator leaves out, including how Arizona's figures are derived.
Quarterly estimated tax deadlines (2026)
If you expect to owe $1,000 or more of federal tax for the year, the IRS expects four estimated payments (Form 1040-ES). Arizona runs its own estimated-payment schedule with its own threshold (see above); the calculator shows the federal installment and the Arizona installment separately, and one combined amount to set aside each quarter.
The 2026 dates are April 15, 2026, June 15, 2026, September 15, 2026, January 15, 2027. The federal amount is split into four equal Form 1040-ES installments after any withholding you entered; paying 100% of last year's tax instead (110% above $150,000 of prior-year AGI) also avoids the penalty. The quarterly calculator works that out and subtracts what you have already paid, and the guide to the due dates explains the rule.
Common questions
Does Arizona tax self-employment income differently from wages?
For state income tax, net profit from self-employment is ordinary income like wages. The self-employment tax itself is federal only; Arizona does not add a state equivalent.
Is half of self-employment tax really deductible?
Yes, for federal tax. The employer-equivalent half is an adjustment to income on Schedule 1, which lowers your AGI and therefore your federal income tax. It does not reduce the self-employment tax itself.
Does an LLC change these numbers?
For federal income tax and self-employment tax, a single-member LLC taxed as a sole proprietorship follows exactly the calculation shown here. State and local obligations can still differ: an LLC may be a taxable entity for a state's franchise, gross-receipts or excise tax, and may owe registration or licence fees a sole proprietor does not — Arizona's are listed above. Electing S-corporation status changes the federal arithmetic too (salary plus distributions) and is outside this tool's scope.
What if I moved to Arizona during the year?
Income earned while you were a resident of another state is taxable there under that state's rules. This calculator assumes all income was earned as an Arizona resident.
Data sources and status
Federal figures for 2026: verified · last verified 2026-09-05 · the revenue procedures and forms they were read from, with every other data set
Arizona figures for 2025: verified · last verified 2026-09-08 · 2026 figures not yet published by the state
- Arizona Department of Revenue : 2025 Form 140 instructions
- A.R.S. §43-1011 (2.5% flat rate), §43-1041 (standard deduction conforms to federal), §43-1073.01 (dependent tax credit)
- Arizona Department of Revenue : 2025 Form 140 instructions: line 49 dependent tax credit ($100 per dependent under 17, $25 per dependent 17 and over, nonrefundable, reduced by Table V — 5% per $1,000 of federal AGI over $200,000, $400,000 joint, gone past $19,000 over), line 50 family income tax credit ($40 per person, capped $240 / $120, for incomes under a table that sits below the standard deduction for most statuses), line 56 increased excise tax credit ($25 per person up to $100 per household, refundable, federal AGI up to $25,000 joint and head of household / $12,500 single and separate); A.R.S. §43-1073
Arizona Department of Revenue · How figures are checked · Corrections log
Other states
Paying as you go? The quarterly estimated tax calculator applies the federal safe harbor and subtracts what you have already paid.