🧑‍💻 Self-Employment Tax Calculator

Calculate the 15.3% SE tax (Social Security + Medicare) on your 1099 / freelance income.

Your Self-Employment Income

Net Self-Employment Earnings

Gross 1099 income minus business expenses

W-2 Wages (if any)

Reduces the Social Security wage base available for SE tax.

Filing Status

SE earnings × 92.35% = $55,410.00

2025 SS wage base: $176,100.00

Additional Medicare threshold (Single): $200,000.00

Total Self-Employment Tax Owed

$8,477.73

Effective rate: 14.13%

Social Security (12.4%)

$6,870.84

Medicare (2.9%)

$1,606.89

💡 Deductible Portion

Half of your SE tax is deductible above-the-line on your federal return.

$4,238.87

This reduces your federal income tax (not your SE tax itself).

Uses 2025 Social Security wage base ($176,100.00). SE tax does not include federal/state income tax. For reference only — consult a tax professional.

How This Tool Works

Self-employment tax is the Social Security and Medicare tax paid by people who work for themselves. When you are employed by a company, your employer pays half of FICA (7.65%) and you pay the other half. When you are self-employed, you pay both halves — 15.3% total (12.4% Social Security + 2.9% Medicare). This calculator estimates your SE tax liability, the deductible portion (you can deduct half of SE tax on your 1040), and your combined SE + income tax obligation so you can plan quarterly estimated payments accurately.

Formula / Methodology

SE Tax = Net Earnings × 92.35% × 15.3% (the 92.35% adjustment accounts for the employer-equivalent deduction).

💡 Tips & Best Practices

1Set aside 25–30% of every payment you receive for taxes — SE tax alone is 15.3% before income tax.
2You can deduct half of your self-employment tax on your 1040, which reduces your adjusted gross income.
3Pay quarterly estimated taxes (April 15, June 15, Sept 15, Jan 15) to avoid underpayment penalties.
4Track all business expenses — they directly reduce your net self-employment income and therefore your SE tax.

Frequently Asked Questions

Do I have to pay self-employment tax on all my freelance income?

You owe SE tax if your net self-employment earnings are $400 or more in a year. Net earnings = gross income minus business expenses. The tax applies to 92.35% of net earnings.

How do quarterly estimated taxes work?

The IRS expects you to pay taxes as you earn income. If you expect to owe $1,000+ in taxes, you should make quarterly payments using Form 1040-ES. Underpayment can result in penalties, even if you pay everything by April 15.