Etsy Seller Quarterly Tax Estimator

When you work a regular job, your employer pays half of your Social Security and Medicare taxes (7.65%) and you pay the other half through payroll withholding. When you're self-employed — including selling on Etsy — there's no employer, so you pay both halves yourself. That's the self-employment tax: 15.3% of 92.35% of your net profit. The 0.9235 factor exists because you can deduct half the SE tax from your income before calculating it.

Net profit is your Etsy revenue minus all legitimate business expenses: materials and supplies, Etsy fees, shipping costs, packaging, a portion of your home office if you use it exclusively for the business, equipment, and software. Do not use your gross revenue — use revenue minus expenses. If you use accounting software or a spreadsheet to track expenses, your annual net profit is the number to enter here. If you're unsure, a tax professional can help you identify all deductible expenses.

The IRS expects self-employed people to pay their taxes in four instalments throughout the year rather than in one lump sum at tax time. For the 2025 tax year, the due dates are: April 15 (Q1), June 16 (Q2), September 15 (Q3), and January 15, 2026 (Q4). If you expect to owe $1,000 or more in taxes for the year, you generally must make these payments or face an underpayment penalty. Use this calculator's quarterly payment figure as your target per instalment.

If you owe $1,000 or more at tax time and didn't make adequate quarterly payments, the IRS charges an underpayment penalty — currently 8% annualised on the shortfall. It's not a huge number but it's avoidable. A common safe-harbour approach: pay at least 100% of last year's tax liability in four equal quarterly instalments (or 110% if your prior-year AGI was above $150,000). This calculator estimates what you owe for the current year; compare it with your prior-year liability to pick the safer approach.

No — this tool covers federal self-employment tax and federal income tax only. Most US states also tax self-employment income, but rates vary from 0% (no state income tax in TX, FL, WA, NV, WY, AK, SD) to over 13% (CA top rate). After using this calculator, add your estimated state income tax to arrive at your total tax liability. Your state's department of revenue website usually has a rate table or its own estimator.

The Additional Medicare Tax (AMT) is an extra 0.9% on self-employment income above $200,000 for single filers or $250,000 for married filers. This calculator does not include the AMT because it only affects a small fraction of Etsy sellers. If your total income — Etsy profit plus other income — exceeds those thresholds, add 0.9% of the excess to the SE tax figure this tool shows.

Yes — and you should. The number to enter in this calculator is your net profit after all business deductions (materials, Etsy fees, shipping, packaging, home office, equipment, etc.). Reducing your taxable profit is the most direct way to lower your tax bill. The standard deduction this tool applies (line "Standard / itemised deduction" in the breakdown) is a personal deduction that reduces income tax — it's separate from your business expense deductions.

This calculator uses verified 2025 IRS tax brackets, the official 2025 Social Security wage base of $176,100, the standard deduction amounts for 2025, and the exact SE tax rate of 15.3% on 92.35% of net profit. It produces a reasonable estimate for most Etsy sellers, but it does not account for: state taxes, the Additional Medicare Tax (high earners), the Qualified Business Income (QBI) deduction (20% pass-through deduction for eligible self-employed people — often reduces federal income tax significantly), tax credits, capital gains, or other income sources beyond W-2 wages. Treat this as a planning estimate and consult a tax professional for your actual return.