As a solopreneur, you must pay taxes quarterly if you expect to owe $1,000+ for the year.
2026 Deadlines:
- Q1 (Jan-Mar): April 15, 2026
- Q2 (Apr-May): June 15, 2026
- Q3 (Jun-Aug): September 15, 2026
- Q4 (Sep-Dec): January 15, 2027
Penalty for Missing: ~0.5% per month on unpaid amount
Total: 15.3%
- Social Security: 12.4% (capped at $168,600 in 2026)
- Medicare: 2.9% (no cap)
- Additional Medicare: 0.9% (income over $200,000)
Good news: You can deduct half (7.65%) from your income tax calculation.
- Simplified: $5 per sq ft (max 300 sq ft = $1,500)
- Actual: % of home used × (rent/mortgage, utilities, repairs)
- 100% deductible for premiums
- Includes dental, vision, long-term care
- Covers spouse and dependents
- Solo 401(k): Up to $66,000/year (2026)
- SEP IRA: Up to 25% of net self-employment income
- SIMPLE IRA: Up to $16,000 + employer match
- Deduct full cost up to $1,160,000 in purchase year
- Computers, software, furniture, equipment
- Deduct up to 20% of qualified business income
- Subject to income limits and restrictions
❌ Not saving enough for taxes (aim for 25-30% of revenue) ❌ Missing quarterly payments ❌ Not tracking deductible expenses ❌ Setting rates based on W-2 equivalent
Your hourly rate must cover ALL of this. Use this calculator to find your number:
https://hourly-rate-calculator.tp-business.workers.dev
Factors in self-employment tax, income tax, deductions, and desired take-home pay.
Disclaimer: This is educational content, not tax advice. Consult a tax professional for your specific situation.