How much tax do your business expenses save?
Enter your profit and expenses. See income tax and self-employment tax saved, 2026 rules.
Short answer
A self-employed person in the 22% bracket saves about 36 cents in federal tax per $1 of deductible expense: 22% income tax plus about 14.1% self-employment tax. Business meals count at 50%. State tax comes on top. Source: irs.gov
Your business expenses this year
The prefilled numbers are examples, not advice. Replace them with yours. Mileage rate source: irs.gov.
1. You spent
$10,980
2. Deductible (meals at 50%)
$10,380
3. Tax saved per year
$3,750
Bar shows saved tax as a share of the deductible amount.
Every $100 you forget to log costs you about $36.13 in tax.
Spent vs deductible by category
- Travel$2,400 of $2,400
- Business meals$600 of $1,200
- Home office$1,800 of $1,800
- Software & subscriptions$900 of $900
- Equipment$1,500 of $1,500
- Phone & internet$600 of $600
- Other$300 of $300
- Business miles$2,280 of $2,280
Dark bar = deductible, light bar = amount spent.
Log every receipt so none is forgotten
Easy Trip Expenses tracks trips, receipts and miles in one place. First report free, then a PDF or Excel expense report for your records.
How it works
- 1Log the expenseEvery receipt, mile and subscription.
- 2Take the deductible shareMost 100%, business meals 50%.
- 3Multiply by your tax rateIncome tax + 14.1% SE tax.
What counts, and how much
| Expense | Deductible share |
|---|---|
| Travel | 100% |
| Business meals | 50% |
| Home office | 100% |
| Software & subscriptions | 100% |
| Equipment | 100% |
| Phone & internet | 100% |
| Other | 100% |
| Business miles | IRS rate x miles |
Simplified. Whether an expense qualifies depends on your situation: check the IRS rules or ask a professional.
Self-employed expense tax FAQ
How much do business expenses save in taxes?
Each deductible dollar lowers your taxable profit, so it saves your marginal income tax rate plus self-employment tax. In the 22% bracket that is about 36 cents per dollar (22% income tax + about 14.1% SE tax). Add your state rate on top.
Are business expenses deductible from self-employment tax too?
Yes. The IRS says self-employment tax applies to 92.35% of your net earnings, and you get net earnings by subtracting ordinary and necessary business expenses from gross income. Lower profit means lower SE tax.
How much of my business meals can I deduct?
Generally 50% of the cost, whether you use actual cost or the standard meal allowance (IRS Publication 463). This calculator counts meals at 50%.
Why does the saving drop for high earners?
The 12.4% Social Security part of SE tax only applies up to the 2026 wage base of $184,500. Above it, only the 2.9% Medicare part applies, so each extra deductible dollar saves less SE tax. This tool handles that.
Is this tax advice? What does it leave out?
No, it is an estimate. It ignores the qualified business income (QBI) deduction, the deduction for half of your SE tax, credits, AMT, the 0.9% Additional Medicare Tax, other wages that count toward the wage base, and the rules on which expenses qualify. Ask a tax professional about your situation.
Formula and sources (checked Nov 4, 2026)
Income tax saved = deductible x (federal + state rate). SE tax = 92.35% x net profit x (12.4% up to $184,500 + 2.9% on all); the saving is SE tax on your profit minus SE tax after expenses. The 0.9% Additional Medicare Tax is ignored.
Estimate only, not tax advice. Ignores the QBI deduction, the half-SE-tax deduction, credits and AMT. Related: mileage reimbursement calculator, mileage log generator, travel expense report generator. Easy Trip Expenses is not affiliated with the IRS or SSA.