Self-Employed Tax Deductions Calculator 2026

Self-employed individuals can deduct a broad range of ordinary and necessary business expenses on Schedule C. Common deductions include home office expenses (simplified or actual method), business mileage at $0.70/mile, 100% of health insurance premiums, retirement plan contributions (SEP-IRA up to $70,000, Solo 401k, SIMPLE IRA), 50% of business meals, CPA and legal fees, business software and subscriptions, the business-use portion of your phone and internet, job-related education and training, business insurance, advertising and marketing, office supplies, and any other expense directly related to running your business. Keep detailed records and receipts for all deductions.

The home office deduction is available to self-employed individuals who use part of their home regularly and exclusively as their principal place of business. You have two methods to choose from. The simplified method lets you deduct $5 per square foot of your office space, up to 300 square feet for a maximum deduction of $1,500 — no complex calculations needed. The actual expense method lets you deduct the business-use percentage of your actual home costs (mortgage interest or rent, utilities, insurance, repairs, and depreciation), which can yield a larger deduction for high-cost areas or larger offices. You claim this on Schedule C (simplified) or Form 8829 (actual).

Yes — self-employed individuals can deduct 100% of health insurance premiums paid for themselves, a spouse, and dependents. This is an above-the-line deduction taken on Schedule 1, so it reduces your adjusted gross income (AGI) without needing to itemize. There are two key restrictions: (1) you cannot be eligible for employer-sponsored coverage through your own employer or your spouse's employer, and (2) the deduction cannot exceed your net profit from self-employment. Dental and vision premiums also qualify.

For 2026, the SEP-IRA contribution limit is the lesser of $70,000 or 25% of net self-employment income (net profit after subtracting half of SE tax). For example, if your net SE income is $100,000, the maximum SEP-IRA deduction is $25,000. If your net SE income is $280,000 or more, you can contribute the full $70,000. The Solo 401(k) shares the same $70,000 total limit but allows larger contributions at lower income levels because the employee elective deferral portion ($23,500) is not subject to the 25% cap.

The standard mileage rate ($0.70/mile for 2026) is simpler — just track your miles. It's typically better for fuel-efficient vehicles, lower-cost cars, or when mileage is moderate. The actual expense method lets you deduct a business-use percentage of gas, oil, insurance, registration, repairs, and depreciation — which can be much larger for expensive, high-mileage, or gas-heavy vehicles. Important rule: you must use the standard mileage method in the first year a vehicle is used for business if you want the option to switch to actual expenses in a later year. You cannot switch to standard mileage if you've already claimed MACRS depreciation or a Section 179 deduction on the vehicle.