California Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and California state income tax as a freelancer or 1099 contractor. California has the highest state income tax rate in the nation at 13.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$3,013
Total Tax Owed
$20,404

Summary

Total Income
$75,000
Total Taxes
-$20,404
After-Tax Income
$54,596
Effective Tax Rate(on total income)
27.2%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$5,101
Q2 (Apr-May)Due June 15
$5,101
Q3 (Jun-Aug)Due September 15
$5,101
Q4 (Sep-Dec)Due January 15 (next year)
$5,101
Each Quarterly Payment
$5,101

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $5,101. Model your freelance income alongside expenses, savings, and investments in the full simulator.

Try the Full Simulator

California Tax Overview for Freelancers

California has the highest state income tax rate in the nation at 13.3% for top earners. The progressive bracket system has 9 brackets ranging from 1% to 13.3%. California also charges a 1.1% SDI payroll tax. Self-employed individuals in California pay federal self-employment tax (15.3%) plus federal income tax, and California state income tax on their net self-employment earnings.

Highest state income tax (13.3%)9 progressive tax bracketsSDI payroll tax (1.1%)No tax on Social Security benefitsHigh cost of living in major metros

Self-Employment Taxes in California

If you work as a freelancer or independent contractor in California, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and California state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

California Income Tax for Freelancers

California has the highest state income tax rate in the nation at 13.3% for top earners. The progressive bracket system has 9 brackets ranging from 1% to 13.3%. California also charges a 1.1% SDI payroll tax.

Cost of Living for Freelancers in California

California's cost of living is approximately 38% above the national average, with housing costs in San Francisco and LA exceeding the national average by 100% or more. As a freelancer in California, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for California Freelancers

  • Maximize pre-tax deductions like 401(k) and HSA to reduce your California tax burden
  • California's SDI payroll tax (1.1%) is an additional cost beyond income tax — factor it into your budget
  • Consider the high cost of living in major metros like San Francisco and LA when evaluating job offers
  • California does not tax Social Security benefits, which benefits retirees
  • If you work remotely for an out-of-state employer, you may still owe California taxes if you live here

Key California Tax Features

  • Highest state income tax (13.3%)
  • 9 progressive tax brackets
  • SDI payroll tax (1.1%)
  • No tax on Social Security benefits
  • High cost of living in major metros

Model Your California Freelance Finances Over Time

This calculator shows your California tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

Start Simulating for Free

Frequently Asked Questions

How is self-employment tax calculated in California?
Self-employed workers in California pay federal self-employment tax (15.3% on 92.35% of net earnings), federal income tax, and California state income tax. California has the highest state income tax rate in the nation at 13.3% for top earners. The progressive bracket system has 9 brackets ranging from 1% to 13.3%. California also charges a 1.1% SDI payroll tax.
How much will I owe in quarterly taxes as a freelancer in California?
Your quarterly estimated tax payment in California depends on your total tax liability — including SE tax, federal income tax, and California state income tax. Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for California freelancers?
Freelancers in California can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. These deductions also reduce your California state taxable income, providing additional state tax savings.
Does California have any special taxes for self-employed workers?
California does not have a separate self-employment tax. However, your net self-employment income is subject to California's regular income tax (13.3% top rate) in addition to federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in California?
The decision to form an LLC or S-Corp in California depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a California tax professional for advice specific to your situation.

Related Calculators