Maryland Self-Employment Tax Calculator (2026)
Federal self-employment tax, federal income tax and Maryland state income tax on 1099 income, plus the quarterly estimated payment to set aside.
- Total tax
- $17,618
- Effective rate
- 24.5%
- Per quarter
- $4,405
- After-tax income
- $54,382
| 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 |
| Maryland income tax | $2,815 |
| Total federal + state | $17,618 |
Estimated payments of $4,405 are due Apr 15, 2026, Jun 15, 2026, Sep 15, 2026, Jan 15, 2027. Maryland 2026 rates are not yet published; state figures use 2025 rates.
How the 2026 numbers are calculated
- Net profit is your 1099 income minus deductible business expenses (Schedule C).
- Self-employment tax is 15.3% of 92.35% of net profit: 12.4% Social Security on the first $184,500 of combined wages and net earnings, plus 2.9% Medicare on all of it. An extra 0.9% Medicare tax applies above $200,000 ($250,000 married filing jointly).
- Adjusted gross income is net profit plus any W-2 wages, minus half of the self-employment tax.
- The standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household) and the 20% qualified business income deduction reduce taxable income. The QBI deduction starts phasing out above $201,750 of taxable income ($403,500 joint).
- Federal income tax is applied to what is left using the 2026 brackets for your filing status.
- The child tax credit ($2,200 per child under 17, $500 per other dependent) reduces income tax; up to $1,700 per child is refundable and can offset self-employment tax.
- The earned income credit for filers with children — up to $4,427 with one child, $7,316 with two, $8,231 with three or more — is fully refundable and phases out above $23,890 of income ($31,160 joint).
- Maryland income tax: calculated under the state's own rules, described below.
Maryland and self-employment income
Maryland's state brackets run from 2% to 5.75% on income up to $500,000 ($600,000 joint), with new 6.25% and 6.5% brackets above that from 2025. The 2025 budget also replaced the old percentage-of-income standard deduction with a flat $3,350 single / $6,700 joint; the $3,200 exemption for each filer and dependent phases down to zero between $100,000 and $150,000 of income ($150,000–$200,000 joint). The number most Marylanders underestimate is the county tax — 2.25% to 3.30% on the same taxable income — which this calculator does not include.
Maryland rules used by this calculator (2025)
- Maryland applies 10 brackets from 2% to 6.5% for 2025.
- Standard deduction: $3,350 single, $6,700 married filing jointly, $6,700 head of household.
- Each filer gets a personal exemption that depends on income.
- The per-dependent deduction steps down as income rises.
- Maryland's earned income credit is 50% of the federal credit, nonrefundable (or 45% refundable, whichever is worth more); the calculator applies it.
- A refundable $500 credit per child under 6, reduced by $50 per child for every $1,000 of income over $15,000; the calculator applies it.
- Maryland starts from federal AGI, so the deductible half of self-employment tax reduces state income as well.
- Every Maryland county and Baltimore City add a local income tax of 2.25% to 3.30% (3.20% in most large counties) on the same Maryland taxable income — often more than half as much again as the state tax. It is not included here.
What a Maryland freelancer may still owe
- Maryland requires estimated payments (Form PV) when you expect to owe more than $500 in state and local tax.
- Every county and Baltimore City levy a local income tax of 2.25% to 3.30% (3.20% in most large counties), collected on the state return. Applied here: the Maryland earned income credit — 50% of the federal credit against the tax or, when it is worth more, a refundable 45% of it (100% refundable for unmarried filers with no qualifying child) — and the refundable $500 child tax credit for children under 6 at incomes up to $24,000. The local earned income credit is not included because the county tax is not.
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). Maryland runs its own estimated-payment schedule with its own threshold (see above); the calculator's per-quarter figure combines federal and state so you can set aside one amount.
- Federal payment 1: April 15, 2026
- Federal payment 2: June 15, 2026
- Federal payment 3: September 15, 2026
- Federal payment 4: January 15, 2027
The calculator splits your total into four equal payments. To avoid an underpayment penalty you can instead pay 100% of last year's total tax (110% if your prior-year AGI was over $150,000) spread across the four dates.
Common questions
Does Maryland 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; Maryland 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?
A single-member LLC taxed as a sole proprietorship pays exactly what this calculator shows. Electing S-corporation status changes the math (salary plus distributions) and is outside this tool's scope.
What if I moved to Maryland 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 Maryland resident.
Data sources and status
Federal figures for 2026: verified · last verified 2026-09-05
- IRS Rev. Proc. 2025-32 (2026 inflation adjustments, incorporating OBBBA changes)
- SSA 2026 COLA fact sheet — Social Security wage base
- 26 U.S.C. §199A as amended by Public Law 119-21 — QBI phase-in range widened to $75,000 / $150,000
- 26 U.S.C. §24 as amended by Public Law 119-21 — CTC $2,200, indexed from 2026
- IRS Form 1040-ES (2026) — estimated tax due dates
- IRS Rev. Proc. 2025-32 §4.06 — earned income credit amounts and §32(i) investment income limit
- IRC §6654(d)(1)(B)–(C), (e)(1) and (f) (required annual payment: lesser of 90% of the current year's tax or 100% of the prior year's, 110% when prior-year AGI exceeds $150,000 / $75,000 MFS; no penalty when the tax less withholding is under $1,000; 'tax' = income tax + SE tax less credits other than withholding), read at law.cornell.edu; Form 1040-ES instructions, 'Who Must Pay Estimated Tax' and the Estimated Tax Worksheet
Maryland figures for 2025: verified · last verified 2026-09-08 · 2026 figures not yet published by the state
- Comptroller of Maryland — 2025 Resident booklet (Form 502 instructions): tax rate schedules I and II (p.22), standard deduction $3,350 / $6,700, exemption phase-down table, tax table rows (25,000–25,050 → $1,136; 50,000–50,050 → $2,324; 75,000–75,050 → $3,511; 99,950–100,000 → $4,696) and the over-$100,000 worksheets (single $200,000 → $10,010; joint $200,000 → $9,635)
- Md. Code, Tax-General §10-105 (rates), §10-217 (standard deduction) and §10-211 (exemptions) in their codified form as amended by Chapter 604 of 2025 (H.B. 352, Budget Reconciliation and Financing Act) — the 6.25% and 6.5% brackets and the flat standard deduction from tax year 2025; the chapter's enrolled PDF was downloaded but the text was read as codified
- Comptroller of Maryland — 2026 Employer Withholding Guide (pm225) and Form MW507 (2026): standard deduction $3,400 (single basis) and the unchanged exemption phase-down table; Central Payroll Bureau memo of February 2026: rates unchanged for 2026
- Comptroller of Maryland — 2025 Resident booklet Instructions 18, 19 and 21 and worksheets 18A / 18A.1 / 21A: line 22 nonrefundable earned income credit (50% of the federal credit, for married filers or filers with a qualifying child), line 44 refundable earned income credit (45% of the federal credit less the Maryland tax), the 100% refundable credit for unmarried filers without a qualifying child (federal minimum age and SSN rule waived), line 29 local earned income credit; Form 502CR Part CC child tax credit ($500 per child under 6, federal AGI up to $15,000, reduced $50 per $1,000 or fraction above it, refundable); Md. Code, Tax-General §10-704 and §10-751