US self-employed & sole proprietor tax calculator 2026
A U.S. sole proprietor (or single-member LLC) reported on Schedule C pays federal income tax across seven 2026 brackets from 10% (up to $11,925) to 37% (over $626,350), plus self-employment tax of 15.3% on 92.35% of net profit. A 20% QBI deduction and a deduction for half your SE tax reduce taxable income. State tax is excluded.
This calculator estimates the federal tax a U.S. sole proprietor or single-member LLC owes on business profit for 2026, combining income tax, self-employment tax, and the 20% Qualified Business Income (QBI) deduction. State and local taxes are not included.
Calculate estimate
Result
United States Sole proprietor / single-member LLC tax rates 2026
| Band or item | Rate |
|---|---|
| Up to US$11,925 | 10% |
| US$11,925 to US$48,475 | 12% |
| US$48,475 to US$103,350 | 22% |
| US$103,350 to US$197,300 | 24% |
| US$197,300 to US$250,525 | 32% |
| US$250,525 to US$626,350 | 35% |
| Over US$626,350 | 37% |
| Self-employment tax (Social Security + Medicare) | 15.3% |
| QBI deduction (max) | 20% |
Source: www.irs.gov
How is a sole proprietor taxed in the United States?
A sole proprietor and a single-member LLC are both "disregarded" for federal tax: business profit flows onto your personal return via Schedule C, and you pay tax at ordinary individual rates. For 2026 the seven federal brackets for a single filer apply the following marginal rates:
- 10% on taxable income up to $11,925
- 12% from $11,925 to $48,475
- 22% from $48,475 to $103,350
- 24% from $103,350 to $197,300
- 32% from $197,300 to $250,525
- 35% from $250,525 to $626,350
- 37% above $626,350
Only the income falling inside each band is taxed at that band's rate, so your average rate stays well below your top marginal rate.
Self-employment tax and the QBI deduction
Because no employer withholds payroll taxes for you, you owe self-employment (SE) tax of 15.3% — 12.4% for Social Security plus 2.9% for Medicare. SE tax is charged on 92.35% of your net profit, not the full amount. You may then deduct one-half of your SE tax when computing income tax.
On top of that, most sole proprietors qualify for the 20% QBI deduction, which removes 20% of qualified business income from taxable income (subject to income limits at higher earnings). Together, the half-SE-tax deduction and the 20% QBI deduction can meaningfully lower the income-tax portion of your bill, though SE tax itself is unaffected.
A worked example at $80,000 profit
Suppose your Schedule C net profit is $80,000 for 2026.
- SE tax: $80,000 × 92.35% = $73,880 base; × 15.3% = $11,304. Half of this, $5,652, is deductible.
- QBI deduction: qualified income is $80,000 − $5,652 = $74,348; × 20% = $14,870.
- Taxable income (illustrative): $80,000 − $5,652 − $14,870 = $59,478.
- Income tax: 10% × $11,925 ($1,193) + 12% × $36,550 ($4,386) + 22% × $11,003 ($2,421) = $7,999.
Total estimated federal tax is about $7,999 + $11,304 = $19,303, an effective rate near 24% of profit before any standard deduction or state tax. Actual figures depend on your standard deduction, filing status, and other income.
Frequently asked questions
How much tax does a U.S. sole proprietor pay in 2026?
A sole proprietor pays federal income tax at rates from 10% (up to $11,925) to 37% (over $626,350), plus self-employment tax of 15.3% on 92.35% of net profit. On $80,000 of profit, total federal tax is roughly $19,303 before state tax.
What is the self-employment tax rate?
The self-employment tax rate is 15.3% — 12.4% for Social Security and 2.9% for Medicare. It applies to 92.35% of your net business profit, and you can deduct half of the SE tax when figuring income tax.
What is the 20% QBI deduction?
The Qualified Business Income (QBI) deduction lets most sole proprietors deduct 20% of qualified business income from taxable income, subject to income limits. On $74,348 of qualified income, that is a $14,870 deduction, lowering the income-tax portion of your bill.
Is a single-member LLC taxed differently from a sole proprietor?
No. By default a single-member LLC is a disregarded entity, so it is taxed exactly like a sole proprietor: profit is reported on Schedule C and subject to the same 10%–37% income tax brackets and 15.3% self-employment tax.
Are the federal income tax brackets marginal?
Yes. The 2026 brackets are marginal, so only income within each band is taxed at that rate — 10% up to $11,925, 12% to $48,475, 22% to $103,350, and so on up to 37% above $626,350. Your average rate is lower than your top rate.
Does this calculator include state taxes?
No. This estimate covers only federal income tax and the 15.3% self-employment tax. State and local income taxes, which vary widely by state, are excluded and would be added on top of the federal figures shown.
Official sources
- Internal Revenue Service (IRS) — Corporate & personal income tax