How to calculate self-employed tax
Self-employed tax is charged on profit, not turnover. Deduct allowable business expenses from your income, then apply income tax plus self-employed social contributions to what remains — and remember you may also owe payments on account towards next year.
The rule
Tax due = (turnover − allowable expenses) taxed at income tax bands + self-employed social contributions
Do it automatically — Self-employed / freelancer taxStep by step
- 1Total your invoiced income for the tax year.
- 2Subtract allowable expenses: equipment, software, travel, home-office share, professional fees.
- 3Apply income tax bands to the resulting profit.
- 4Add self-employment social contributions, then check whether advance payments on account apply.
What trips people up
- • Set aside roughly 25–35% of every payment received so the bill is never a surprise.
- • Your first year can bring a bill of 150% of the tax due once payments on account start.
Common questions
Can I deduct my home office?
Yes — either a flat rate per month or a fair proportion of household running costs.
Do I need to register for VAT or sales tax?
Only once you pass the registration threshold, though voluntary registration can suit B2B businesses.
Skip the maths
Income tax, NI/PRSI/SE tax and payments-on-account from your annual profit.
Open the sole trader & 1099 tool