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- Educational use only. This calculator gives general estimates for informational and educational purposes. It is not tax, accounting, legal or financial advice and does not replace a CPA, enrolled agent, attorney or licensed financial advisor.
- Your figures stay in your browser. The numbers you enter are processed only on your device by this calculator and are not sent to or stored on our servers. The calculator saves only your language choice and your acceptance of these terms in your browser. Advertising and analytics on this website are covered by our Privacy Policy.
- No guarantee of credit or loan approval. Loan payments and debt-to-income results are theoretical simulations. Lenders apply their own criteria, and nothing here is an offer, a pre-qualification or a promise of approval.
- Limitation of liability. Results may contain errors or omissions and may not reflect your full tax situation or later changes in the law. To the fullest extent permitted by law, the owner of this site is not responsible for penalties, interest, losses or decisions you make based on these estimates. You are responsible for verifying your figures with the IRS and a qualified professional.
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Your 2026 tax estimate
Federal tax before credits, plus an approximate state tax.
| Net profit (Schedule C) | |
|---|---|
| Social Security part of SE tax (12.4%) | |
| Medicare part of SE tax (2.9%) | |
| Additional Medicare Tax (0.9%) | |
| Deduction for ½ of SE tax | |
| Adjusted gross income (AGI) | |
| Standard deduction | |
| Senior deduction (age 65+) | |
| QBI deduction | |
| Federal taxable income | |
| Federal income tax (before credits) | |
| Total federal tax (income + SE + Additional Medicare) | |
| State income tax (approximation) | |
| Estimated total tax |
Federal payments and quarterly estimates
| Withholding + estimated payments made | |
|---|---|
| Estimated federal balance remaining | |
| Safe-harbor payment target for 2026 | |
| Still needed to reach the safe harbor |
2026 estimated tax due dates (Form 1040-ES):
Loan payment and debt-to-income simulation
A rough guide only. Lenders use their own income rules.
36% and 43% are common reference points, not approval rules. Limits vary by lender and loan type.
| Total of payments | |
|---|---|
| Existing monthly debt payments (as entered) | |
| + New loan payment | |
| = Total monthly debt used for DTI | |
| Gross monthly income used (net profit + W-2 box 1, before tax) | |
| Estimated after-tax monthly income | |
| New payment alone as % of gross income | |
| New payment as % of after-tax income |
How this DTI is built: (existing monthly debts you entered + the new loan payment) ÷ gross monthly income. A lender recalculates it from your credit report, so it will include every recurring obligation it finds (minimum card payments, auto and student loans, child support and, for a mortgage, the full housing payment with taxes and insurance), which may be more than you entered here. The “new payment alone” line shows the loan’s share of income by itself.
Lenders often average two years of Schedule C net profit and may add back items such as depreciation, so the income they accept can differ from this estimate. Income from a spouse counts only if they are on the loan.
How self-employment tax works in 2026
When you work for yourself, no employer pays half of your Social Security and Medicare taxes, so you pay both halves through self-employment (SE) tax. According to the IRS guide to self-employment tax, the rate is 15.3% of 92.35% of your net profit: 12.4% for Social Security and 2.9% for Medicare. You generally owe it once those net earnings reach $400. For 2026, the Social Security part applies only up to $184,500 of your combined wages and self-employment earnings, while Medicare has no cap. A separate 0.9% Additional Medicare Tax applies above $200,000 for single and head-of-household filers, $250,000 for joint filers, or $125,000 if married filing separately.
SE tax is in addition to income tax. You deduct half of your SE tax when figuring adjusted gross income, then subtract the standard deduction: $16,100 for single or separate filers, $24,150 for heads of household and $32,200 for joint filers in 2026, plus extra amounts if you are 65 or older. Many freelancers also qualify for the qualified business income (QBI) deduction of up to 20% of business profit. Above $201,750 of taxable income ($403,500 joint), it can shrink or disappear for specified service businesses and for businesses without employees or property.
Quarterly estimated payments
Because nothing is withheld from client payments, you generally must make estimated tax payments if you expect to owe at least $1,000 after withholding. For 2026 they are due April 15, June 15 and September 15, 2026, and January 15, 2027. You can usually avoid an underpayment penalty by paying, on time, at least 90% of your 2026 tax or 100% of your 2025 tax (110% if your 2025 AGI was over $150,000). The “set aside per $1” figure above shows how much of each client payment to move into a separate savings account to cover federal and estimated state tax on that income.
How taxes affect a loan application
Lenders usually look at net profit on Schedule C rather than gross revenue, so deductions that lower your tax bill can also lower the income a lender sees. Debt-to-income ratio compares your monthly debt payments with your gross monthly income. Many lenders treat about 36% as comfortable and 43% as a common ceiling, but requirements differ by lender and loan type, and no calculator can predict approval. Before applying, gather two years of tax returns, recent bank statements and a year-to-date profit and loss statement.
This calculator provides estimates for educational purposes only. Consult a CPA or enrolled agent for advice on your situation.