Pennsylvania Self-Employment Tax Calculator (2026)
Federal self-employment tax, federal income tax and Pennsylvania state income tax on 1099 income, plus how much to set aside for each estimated payment.
Federal 2026 and Pennsylvania 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
- $17,014
- Effective rate
- 23.6%
- Set aside per quarter
- $4,253
- After-tax income
- $54,986
| 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 |
| Pennsylvania income tax | $2,210 |
| Total federal + state | $17,014 |
Local income tax (never in the total above): Nearly every Pennsylvania municipality levies an earned income tax on net profits, typically 1% (Philadelphia's net profits tax: 3.74% for residents in 2025, 3.735% in 2026). Local tax is not included here.
Amounts to set aside, not bills: federal $3,701 for each Form 1040-ES installment (Apr 15, Jun 15, Sep 15, Jan 15). Pennsylvania: $553 per installment on its own schedule. For the safe-harbor amount and payments you have already made, use the quarterly calculator with these inputs. Pennsylvania 2026 rates are not yet published; state figures use 2025 rates.
Pennsylvania and self-employment income
Pennsylvania has a flat 3.07% tax on net profits from business. There is no standard deduction and no exemptions, and the state does not allow the federal deduction for half of self-employment tax, so the tax applies to your full net profit.
Pennsylvania rules used by this calculator (2025)
- Pennsylvania applies a flat 3.07% rate for 2025.
- There is no standard deduction.
- Tax forgiveness: the whole tax is forgiven when eligibility income is at or below $6,500 unmarried / $13,000 married plus $9,500 per dependent child, and the forgiven share falls 10% for every $250 above that; the calculator applies it.
- Pennsylvania does not allow the federal deduction for half of self-employment tax; state tax applies to net profit before that deduction.
- Nor does it allow the self-employed health insurance deduction, SEP-IRA contributions or solo 401(k) contributions: state tax applies to net profit before them.
- Nearly every Pennsylvania municipality levies an earned income tax on net profits, typically 1% (Philadelphia's net profits tax: 3.74% for residents in 2025, 3.735% in 2026). Local tax is not included here.
What a Pennsylvania freelancer may still owe
- Pennsylvania requires estimated payments (Form PA-40 ES) when you expect to owe more than $8,000 of income not subject to withholding — in practice, most freelancers.
- Nearly every municipality levies an earned income tax on net profits (typically 1%; Philadelphia's net profits tax on residents is 3.74% for 2025 and 3.735% for 2026), filed with a local collector, not the state.
- Applied here: tax forgiveness (Schedule SP), which cancels the whole tax when net profit plus wages is at or below $6,500 unmarried / $13,000 married plus $9,500 per dependent child and a falling share for the next $2,250. Pennsylvania has no earned income or child credit; the child and dependent care credit is not included.
What Pennsylvania costs at three levels of profit (2026 federal, 2025 Pennsylvania rates)
A single filer with no dependents and no other income, taking the standard deduction. The state column is Pennsylvania's own tax after its deductions, exemptions and credits.
| Net profit | Federal (2026) | Pennsylvania (2025 rates) | Total | Effective rate |
|---|---|---|---|---|
| $50,000 | $9,732 | $1,535 | $11,267 | 22.53% |
| $75,000 | $15,495 | $2,303 | $17,797 | 23.73% |
| $100,000 | $22,365 | $3,070 | $25,435 | 25.43% |
At $75,000 of profit, Pennsylvania takes $2,303 — 12.94% 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 Pennsylvania'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). Pennsylvania runs its own estimated-payment schedule with its own threshold (see above); the calculator shows the federal installment and the Pennsylvania 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 Pennsylvania 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; Pennsylvania 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. Pennsylvania does not allow this deduction for state tax.
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 — Pennsylvania'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 Pennsylvania 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 Pennsylvania 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
Pennsylvania figures for 2025: verified · last verified 2026-09-08 · 2026 figures not yet published by the state
- Pennsylvania Department of Revenue : 2025 PA-40 instructions
- 72 P.S. §7302 : 3.07% flat rate
- Pennsylvania Department of Revenue : 2025 PA-40 Schedule SP and instructions (tax forgiveness): eligibility income tables — 100% forgiven at or below $6,500 unmarried / $13,000 married (even when filing separately) plus $9,500 per dependent child, falling 10 points for each $250 or part above that to 0%; eligibility income = the positive PA income classes (a business loss counts as zero) plus listed nontaxable income; dependent = a child of any age claimed as a federal dependent; PA-40 line 21
- City of Philadelphia, Department of Revenue : Net Profits Tax page (tax rates by year: 2025 residents 3.74%, non-residents 3.43%; 2024 3.75% / 3.44%) and the 2026-06-11 notice on rate changes (tax year 2026: 3.735% / 3.425%)
- Pennsylvania Department of Revenue : PA Personal Income Tax Guide, Deductions and Credits (read 2026-09-18): federal adjustments not allowed, including one-half of self-employment tax, the self-employed health insurance deduction and self-employed SEP, SIMPLE and qualified plans ('No provision'); the four deductions allowed (MSA, HSA, §529, §529A)
- Pennsylvania Department of Revenue : PA Personal Income Tax Guide, Net Income (Loss) from the Operation of a Business, Profession or Farm (read 2026-09-18): contributions by a self-employed individual to his own pension plan or welfare benefit program are not deductible nor excludable; a sole proprietor cannot deduct his own pension and profit-sharing contributions; contributions to benefit plans established for sole proprietors cannot be deducted
Pennsylvania 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.