How GigWiseTax Calculates Your Taxes
Every number in our calculator is based on published IRS formulas and official state tax rates. This page explains exactly how we arrive at each figure — so you can verify our math.
Step 1 — Self-Employment Tax (IRS Schedule SE)
Self-employment tax covers Social Security (12.4%) and Medicare (2.9%) — the same taxes W-2 employees split with their employer. As a gig worker, you pay both halves: 15.3% total. The IRS allows a small adjustment before applying the rate.
Step 2 — Federal Income Tax (2026 Brackets)
Federal income tax is calculated on adjusted gross income (AGI), which is net profit minus the SE deduction (half of SE tax). We apply the standard deduction before estimating the bracket.
| Rate | Single filer taxable income | Married filing jointly |
|---|---|---|
| 10% | $0 – $11,925 | $0 – $23,850 |
| 12% | $11,926 – $48,475 | $23,851 – $96,950 |
| 22% | $48,476 – $103,350 | $96,951 – $206,700 |
| 24% | $103,351 – $197,300 | $206,701 – $394,600 |
| 32% | $197,301 – $250,525 | $394,601 – $501,050 |
| 35% | $250,526 – $626,350 | $501,051 – $751,600 |
| 37% | Over $626,350 | Over $751,600 |
Note: Our calculator uses a simplified effective rate based on the most common bracket for the entered income level. Actual federal tax depends on additional deductions, credits, and other income.
Step 3 — State Income Tax
We include state income tax for all 51 jurisdictions (50 states + D.C.). Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
Step 4 — Quarterly Payment Estimate
Gig workers who expect to owe $1,000 or more must pay estimated taxes quarterly. We divide the total annual tax estimate by 4 for equal quarterly payments.
What This Calculator Does Not Include
• Qualified Business Income (QBI) deduction — not included
• Child tax credit, earned income credit, and other credits — not included
• Local/city income taxes (e.g. NYC) — not included
• Alternative Minimum Tax (AMT) — not included
• Multiple income sources (W-2 + gig) interactions — simplified
For a complete and accurate tax return, use tax filing software (TurboTax, H&R Block, TaxAct) or consult a licensed CPA or Enrolled Agent.