What is self-employment tax and how much is it?

Self-employment tax is the freelancer equivalent of Social Security and Medicare taxes. It's 15.3% total — 12.4% for Social Security (up to the $184,500 wage base) plus 2.9% for Medicare (no cap) — calculated on 92.35% of net profit.

Does PA charge state unemployment tax on self-employment income?

No. Pennsylvania's employee UC (SUI) contribution applies to W-2 wages, not to self-employment or freelance net profit.

Do freelancers owe local EIT on their net profit?

Yes. Under Act 32, net profits from self-employment count as earned income for local Earned Income Tax purposes, so your municipality's EIT rate applies.

How often do I need to pay estimated taxes as a freelancer?

Both the IRS and Pennsylvania generally expect quarterly estimated payments, typically due in mid-April, June, September, and January, since no employer withholds tax throughout the year.

Can I deduct business expenses before calculating tax?

Yes — this calculator is built around net profit, meaning income after deducting legitimate Schedule C business expenses. Enter net profit, not gross freelance revenue.

2026 IRS & Pennsylvania Department of Revenue Figures

PA Freelancer & 1099 Tax Calculator

This pa 1099 tax calculator estimates self-employment tax, federal income tax, Pennsylvania state tax, and local EIT on your net freelance or 1099 profit — plus a quarterly estimated payment amount. It's part of the same Pennsylvania Paycheck Calculator family of tools — if you're a W-2 employee instead, use the main PA paycheck calculator on the homepage.

Updated for 2026 Tax Year Self-Employment Tax Included Quarterly Estimate No Sign-up Required

Freelance / 1099 Income

Net profit

Net profit for the year ($)

Filing status

Pennsylvania local tax

Municipality preset

Local EIT rate (%) Edit to match your exact municipality

Your estimated tax breakdown

After-Tax

Net profit	$0
Self-employment tax	$0
Social Security portion (12.4%)	$0
Medicare portion (2.9%)	$0
Additional Medicare (0.9%)	$0
Income taxes	$0
Federal income tax	$0
PA state income tax (3.07%)	$0
Local earned income tax	$0
Estimated after-tax income	$0

Effective tax rate0.0%

Suggested quarterly payment$0

Estimates only. Uses the 2026 IRS self-employment tax rate (15.3% on 92.35% of net profit, up to the $184,500 Social Security wage base, plus 2.9% Medicare with no cap and a 0.9% Additional Medicare Tax above $200,000 single / $250,000 MFJ), the deduction for half of SE tax, 2026 federal brackets and standard deduction, Pennsylvania's flat 3.07% state tax, and your selected local EIT rate. PA does not require self-employed individuals to pay state unemployment (SUI) contributions. Not tax or legal advice — consult a tax professional for your specific situation.

Freelancer Tax Quick Facts

PA Freelancer & 1099 Tax Facts — 2026

Item	2026 Figure
Self-employment tax rate	15.3% of 92.35% of net profit
— Social Security portion	12.4%, up to $184,500 wage base
— Medicare portion	2.9%, no wage cap
Additional Medicare Tax	0.9% above $200,000 (single) / $250,000 (MFJ)
Deduction for half of SE tax	Reduces federal taxable income only
PA state income tax on net profit	3.07% flat
Local EIT on net profit	Same rate as W-2 wages, under Act 32
PA unemployment (SUI) for self-employed	Not required
Estimated tax due dates	Quarterly — mid-April, June, September, January

How Freelance Taxes Work

Why Freelancers Pay More Than W-2 Employees

As a W-2 employee, your employer pays half of your Social Security and Medicare taxes automatically. As a freelancer or 1099 contractor, you're both the employee and the employer — so you owe the full 15.3% self-employment tax yourself, on top of federal income tax, Pennsylvania's 3.07% state tax, and your local EIT rate.

The IRS lets you deduct half of your self-employment tax from your federal taxable income, which softens the federal hit slightly, but Pennsylvania does not offer a similar adjustment — the state taxes your net profit at the full flat 3.07% rate. Local EIT applies too, since Act 32 treats net profits from self-employment the same as earned wages.

Because nothing is automatically withheld from freelance income, the IRS and Pennsylvania both expect quarterly estimated payments rather than a single amount at filing time — underpaying can trigger penalties even if you pay in full by April. Check your local rate on the PA Cities hub, compare a bonus payment instead with the PA Bonus Calculator, or see city-specific figures for Philadelphia, Pittsburgh, and Allentown. For W-2 withholding questions, our PA payroll guides cover related topics, or head back to the Tools hub.

FAQ

PA Freelancer / 1099 Calculator — FAQ

Self-employment tax is the freelancer equivalent of the Social Security and Medicare taxes a W-2 employer and employee split. It's 15.3% total — 12.4% for Social Security (up to the $184,500 wage base) plus 2.9% for Medicare (no cap) — calculated on 92.35% of your net profit.
No. Pennsylvania's employee UC (SUI) contribution applies to W-2 wages, not to self-employment or freelance net profit. Self-employed individuals generally aren't required to pay into PA's unemployment compensation system on that income.
Yes. Under Act 32, net profits from self-employment count as earned income for local Earned Income Tax purposes, so your municipality's EIT rate applies to your freelance profit just as it would to W-2 wages.
Both the IRS and Pennsylvania generally expect quarterly estimated payments — typically due in mid-April, June, September, and January — since no employer is withholding tax from freelance income throughout the year. Underpayment can trigger penalties even if the full amount is paid by the annual filing deadline.
Yes — this calculator is built around your net profit, meaning your total freelance income after deducting legitimate business expenses (Schedule C deductions like equipment, software, home office, mileage, etc.). Enter your net profit, not your gross freelance revenue, for an accurate estimate.