Gig Tax Kit
Methodology

How we calculate

Every calculator on this site uses the same tax engine and the same set of 2026 figures. They were last checked on September 28, 2026. Here’s exactly what they do.

What’s included

  • Federal self-employment tax (Schedule SE)
  • Federal income tax with the standard deduction and 2026 brackets
  • The deduction for half of self-employment tax
  • The 20% qualified business income (QBI) deduction, simplified
  • The qualified tips deduction (2025–2028), when you choose it
  • The IRS standard mileage rates

What’s not included (yet)

  • State and local income taxes
  • Tax credits (child tax credit, earned income credit and others)
  • Itemized deductions, the self-employed health insurance deduction and retirement contributions
  • Capital gains and other special income

Because credits aren’t included, some people, especially lower earners with children, will owe less than our estimate.

Step by step

  1. Net profit = business income − business expenses (including the mileage deduction).
  2. Net earnings from self-employment = net profit × 92.35%. Under $400, no SE tax is due.
  3. Social Security = 12.4% × net earnings, on up to $184,500 minus any W-2 wages.
  4. Medicare = 2.9000000000000004% × net earnings, plus 0.8999999999999999% Additional Medicare Tax on earnings above $200,000 ($250,000 married filing jointly), less W-2 wages.
  5. Adjusted gross income = W-2 wages + other income + net profit − half of SE tax (excluding Additional Medicare Tax).
  6. Taxable income = AGI − standard deduction − tips deduction − QBI deduction.
  7. Income tax from the 2026 brackets below.

When you enter W-2 wages, results show the extra tax caused by your self-employment income: total tax minus the tax on your wages alone.

QBI deduction

20% of qualified business income (net profit minus half of SE tax), limited to 20% of taxable income before the deduction. Above $201,750 of taxable income ($403,500 joint), we reduce it in a straight line to zero over $75,000 ($150,000 joint). This assumes the business has no W-2 employees and no significant business property, which is true for most solo gig workers and freelancers.

Tips deduction

Up to $25,000 of qualified tips, reduced by $100 for each $1,000 of income above $150,000 ($300,000 joint), and limited to net profit. It lowers income tax only.

Quarterly payments

Required payment = the lower of 90% of this year’s estimated tax, or 100% of last year’s tax (110.00000000000001% if last year’s AGI was over $150,000). We subtract withholding and payments already made and divide the rest evenly across the due dates that haven’t passed.

2026 figures

Standard deduction

Filing statusAmount
Single$16,100
Married filing jointly$32,200
Head of household$24,150

Tax brackets: Single

RateTaxable income
10%$0 – $12,400
12%$12,400 – $50,400
22%$50,400 – $105,700
24%$105,700 – $201,775
32%$201,775 – $256,225
35%$256,225 – $640,600
37%Over $640,600

Tax brackets: Married filing jointly

RateTaxable income
10%$0 – $24,800
12%$24,800 – $100,800
22%$100,800 – $211,400
24%$211,400 – $403,550
32%$403,550 – $512,450
35%$512,450 – $768,700
37%Over $768,700

Tax brackets: Head of household

RateTaxable income
10%$0 – $17,700
12%$17,700 – $67,450
22%$67,450 – $105,700
24%$105,700 – $201,750
32%$201,750 – $256,200
35%$256,200 – $640,600
37%Over $640,600

Mileage

PeriodBusiness rate
Jan 1 – Jun 30, 202672.5¢ per mile
Jul 1 – Dec 31, 202676¢ per mile

Sources