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🧑💻 Self-Employment Tax Calculator
Calculate the 15.3% SE tax (Social Security + Medicare) on your 1099 / freelance income.
Your Self-Employment Income
Gross 1099 income minus business expenses
Reduces the Social Security wage base available for SE tax.
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.
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