Colorado Self-Employment Tax Calculator (2026)
Federal self-employment tax, federal income tax and Colorado state income tax on 1099 income, plus how much to set aside for each estimated payment.
Federal 2026 and Colorado 2026 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
- $16,592
- Effective rate
- 23.0%
- Set aside per quarter
- $4,148
- After-tax income
- $55,408
| 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 |
| Colorado income tax | $1,789 |
| Total federal + state | $16,592 |
Local income tax (never in the total above): Colorado has no city or county income tax; Denver, Aurora and a few other cities charge a flat occupational privilege tax of a few dollars a month.
Amounts to set aside, not bills: federal $3,701 for each Form 1040-ES installment (Apr 15, Jun 15, Sep 15, Jan 15). Colorado: $447 per installment on its own schedule. For the safe-harbor amount and payments you have already made, use the quarterly calculator with these inputs.
Colorado and self-employment income
Colorado's flat 4.4% applies to federal taxable income, so the federal standard deduction and the 20% QBI deduction already reduce the state base and the deduction for half of self-employment tax carries over. There are no state exemptions. High earners add back the QBI deduction (above $500,000 of income, $1,000,000 joint) and any federal deduction over $12,000 / $16,000 (above $300,000). The TABOR mechanism can trim the rate in a strong revenue year (4.25% applied to 2024); the Department's forms show 4.4% for both 2025 and 2026.
Colorado rules used by this calculator (2026)
- Colorado applies a flat 4.4% rate for 2026.
- There is no standard deduction.
- Colorado starts from federal taxable income, so the federal standard deduction already applies, adding the federal QBI deduction back only above $500,000 of income ($1,000,000 joint).
- Colorado's earned income credit is 25% of the federal credit, refundable; the calculator applies it.
- A refundable $1,200 falling to $0 by income credit per child under 6; the calculator applies it.
- Colorado starts from federal AGI, so the deductible half of self-employment tax reduces state income as well.
- Colorado has no city or county income tax; Denver, Aurora and a few other cities charge a flat occupational privilege tax of a few dollars a month.
What a Colorado freelancer may still owe
- Colorado requires estimated payments (DR 0104EP) when you expect to owe $1,000 or more.
- There is no city or county income tax; Denver, Aurora and a few other cities charge a flat occupational privilege tax of a few dollars a month. Applied here: the refundable Colorado EITC (50% of the federal credit for 2025, 25% for 2026), the child tax credit per child under 6 ($1,200 to $200 by income) and, for 2025 only, the family affordability credit per child (up to $3,273 under 6 and $2,455 for ages 6–16, phasing out by $85,000 single / $96,000 joint). Sole proprietors who deduct business meals add that deduction back on the Colorado return; the child care credit is not included.
What Colorado costs at three levels of profit (2026)
A single filer with no dependents and no other income, taking the standard deduction. The state column is Colorado's own tax after its deductions, exemptions and credits.
| Net profit | Federal | Colorado | Total | Effective rate |
|---|---|---|---|---|
| $50,000 | $9,732 | $1,069 | $10,801 | 21.6% |
| $75,000 | $15,495 | $1,887 | $17,382 | 23.18% |
| $100,000 | $22,365 | $2,705 | $25,069 | 25.07% |
At $75,000 of profit, Colorado takes $1,887 — 10.85% 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 Colorado'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). Colorado runs its own estimated-payment schedule with its own threshold (see above); the calculator shows the federal installment and the Colorado 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 Colorado 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; Colorado 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 — Colorado'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 Colorado 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 a Colorado 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
Colorado figures for 2026: verified · last verified 2026-09-08
- Colorado Department of Revenue : 2026 Form DR 0104EP (estimated tax, rev. 2025-06-10): 'line 2: 4.4% of line 1'; 2026 DR 1098 withholding worksheet (rev. 2025-10-21): 'multiply by 4.40% (0.044)'
- Colorado Legislative Council Staff : June 2026 Economic & Revenue Forecast: TABOR revenue below the cap, 'the income tax rate reduction mechanism will not be triggered in tax years 2026 or 2027'
- H.B. 25B-1001 (2025 special session) : the QBI addback under §39-22-104(3)(o) continues indefinitely from 2026; 2025 104 Book for the unchanged mechanics
- C.R.S. §39-22-123.5(2)(d)(II)(C) : 25% of the federal credit for 2026 and later, plus a revenue-trigger add-on that the December 2025 OSPB forecast did not trigger — Legislative Council Staff June 2026 forecast ('the expanded EITC will be unavailable for tax year 2026') and the H.B. 26-1289 fiscal note (2026-06-12: 'for tax year 2026, the Colorado EITC is 25 percent'); §39-22-129(4.5): the child tax credit is permanent, thresholds indexed (2026 values not yet published — 2025 carried); no family affordability credit for 2026 (trigger not met; H.B. 26-1223's replacement starts 2027)
Colorado 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.