$73,880.00
$9,161.12
$2,142.52
$11,303.64
$5,651.82
14.13
%
$1,243.40
$2,825.91
$73,880.00
$9,161.12
$2,142.52
$11,303.64
$5,651.82
14.13
%
$1,243.40
$2,825.91
The Self-Employment Tax Calculator estimates the Social Security and Medicare taxes owed by self-employed individuals, including freelancers, independent contractors, sole proprietors, and gig workers. Unlike W-2 employees who split FICA taxes with their employer, self-employed individuals must pay both halves — a total rate of 15.3% on their net earnings.
Self-employment tax is calculated on 92.35% of net earnings (not 100%), which simulates the employer's share deduction that W-2 workers receive. Net earnings means your business revenue minus deductible business expenses. The tax consists of 12.4% for Social Security (on earnings up to $168,600 in 2024) and 2.9% for Medicare (on all earnings), plus an additional 0.9% Medicare surtax on combined earnings above $200,000 for single filers.
One important benefit: self-employed individuals can deduct 50% of self-employment tax as an above-the-line deduction on their income tax return. This deduction reduces your adjusted gross income (AGI), which in turn reduces your income tax liability. The calculator shows this deduction for your tax planning convenience.
If you also earn W-2 wages from another job, those wages count toward the Social Security wage base, reducing the self-employment income subject to the 12.4% Social Security portion. Enter your W-2 income in the 'Other Income' field for accurate results.
Self-employment tax is typically paid through quarterly estimated tax payments (Form 1040-ES) due April 15, June 15, September 15, and January 15. Failure to make estimated payments may result in underpayment penalties. This calculator helps you estimate your quarterly SE tax liability for budgeting purposes.
The calculation follows IRS Schedule SE logic:
The effective self-employment tax rate is typically around 14.1% of net earnings (15.3% × 92.35% = 14.13%). If you also have W-2 income that exhausts the Social Security wage base, your SE tax rate drops to about 2.68% (Medicare only). The 50% deduction further reduces your overall tax burden.
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Results
Freelancer with $80k net profit pays approximately $11,304 in SE tax.
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Results
W-2 wages exhaust SS base, so only Medicare applies to SE income.
The self-employment tax rate is 15.3%, composed of 12.4% for Social Security and 2.9% for Medicare. This is applied to 92.35% of net self-employment earnings, making the effective rate approximately 14.13%.
The 92.35% factor (100% minus half of 15.3%) simulates the employer's share deduction that W-2 workers receive. This ensures self-employed individuals aren't taxed more heavily than employees on an equivalent basis.
Yes. You can deduct 50% of your self-employment tax as an above-the-line deduction on Form 1040, reducing your adjusted gross income (AGI) and your income tax liability.
Net earnings from a trade or business you operate as a sole proprietor, freelancer, independent contractor, or partnership member. This includes gig work (Uber, freelance platforms), rental income from active participation, and any Schedule C income.
Yes, but your W-2 wages count toward the Social Security wage base ($168,600). If your W-2 wages exceed this amount, you owe no Social Security portion on SE income — only the 2.9% Medicare tax.
Quarterly: April 15, June 15, September 15, and January 15 of the following year. Use Form 1040-ES to calculate and pay estimated taxes.
You must pay SE tax if your net self-employment earnings are $400 or more in a tax year. Below $400, no SE tax is owed.
If your combined wages and self-employment income exceed $200,000 (single), you pay an additional 0.9% Medicare tax on the excess. For married filing jointly, the threshold is $250,000.
You can reduce SE tax by maximizing legitimate business deductions (reducing net earnings), choosing an S-corp structure (paying yourself a reasonable salary), or contributing to a SEP-IRA or Solo 401(k) — though retirement contributions reduce income tax, not SE tax directly.
Use Schedule SE (Form 1040) to calculate self-employment tax. You'll also use Schedule C to determine your net self-employment earnings (business revenue minus expenses).
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