Free self-employment tax calculator. Estimate SE tax (Social Security + Medicare) on freelance, gig, or business income with deductible half and net earnings breakdown.
The Self-Employment Tax Calculator estimates the Social Security and Medicare taxes owed on your net self-employment earnings. If you are a freelancer, gig worker, sole proprietor, or independent contractor, you pay both the employer and employee portions of FICA — a combined 15.3% rate.
Self-employment tax is calculated on 92.35% of your net self-employment income. The Social Security portion (12.4%) applies up to the wage base limit ($176,100 for 2025), and the Medicare portion (2.9%) applies to all SE income with no cap. An additional 0.9% Medicare surtax applies to high earners.
You can deduct half of your SE tax when computing adjusted gross income, which reduces your overall income tax liability. Many self-employed individuals are surprised by the magnitude of SE tax, which at 15.3% on the first $168,600 of net earnings often exceeds their income tax. Understanding this dual tax burden is critical for pricing your services, setting aside adequate reserves, and taking full advantage of the deductible half to reduce your adjusted gross income.
Self-employment tax can be a surprising expense for new freelancers. At 15.3%, it often exceeds income tax for moderate earners. This calculator shows the exact breakdown so you can plan quarterly payments, set aside the right amount, and claim the deductible half correctly. Knowing your SE tax obligation upfront prevents the cash flow surprises that catch many first-time business owners.
Net SE Earnings = Net SE Income × 92.35% Social Security Tax = min(Net SE Earnings, $176,100) × 12.4% Medicare Tax = Net SE Earnings × 2.9% Additional Medicare = max(0, Net SE Earnings – $200,000) × 0.9% Total SE Tax = SS Tax + Medicare Tax + Additional Medicare Deductible Half = Total SE Tax × 50%
Result: SE tax: $14,130 | Deductible half: $7,065
On $100,000 net SE income: 92.35% = $92,350 subject to SE tax. Social Security: $92,350 × 12.4% = $11,451. Medicare: $92,350 × 2.9% = $2,678. Total SE tax: $14,130. Deductible half: $7,065 reduces AGI.
SE tax and income tax are separate obligations. SE tax funds Social Security and Medicare, while income tax funds general government operations. A freelancer earning $80,000 might owe roughly $11,300 in SE tax plus $7,000–$10,000 in income tax, depending on deductions and filing status.
Self-employed individuals must make quarterly estimated tax payments if they expect to owe $1,000 or more. Due dates are April 15, June 15, September 15, and January 15. Missing payments triggers an underpayment penalty. Use Form 1040-ES to calculate and submit payments.
Some high-earning self-employed individuals elect S-Corp status. This lets them pay themselves a reasonable salary (subject to FICA) and take remaining profits as distributions (not subject to FICA). This can save thousands in SE tax but adds complexity and payroll costs. Consult a CPA to evaluate if this strategy makes sense for your situation.
Self-employment tax is the Social Security and Medicare tax paid by self-employed individuals. Employees split these taxes 50/50 with their employer, but self-employed people pay both halves — a total of 15.3% on net SE earnings.
The 92.35% factor simulates the employer-half deduction that W-2 employees receive. Employees do not pay FICA on their employer's share. Multiplying by 92.35% (100% – 7.65%) approximates this adjustment for the self-employed.
The 2025 Social Security wage base is $176,100. The 12.4% Social Security tax only applies to net SE earnings up to this limit. Any SE income above this amount is subject only to the 2.9% Medicare tax (and potentially the 0.9% Additional Medicare Tax).
The Additional Medicare Tax is a 0.9% surtax on earned income above $200,000 (single) or $250,000 (MFJ). It applies to combined W-2 wages and SE income. This tax is not deductible and was introduced by the Affordable Care Act.
Yes. Maximize legitimate business deductions to lower net SE income. Consider an S-Corp election to split income between salary (subject to FICA) and distributions (not subject). Contribute to a SEP-IRA or Solo 401(k) to reduce income tax, though these do not directly reduce SE tax.
Yes. Self-employment tax is a separate tax on top of federal income tax. However, you can deduct half of SE tax from your adjusted gross income, which slightly reduces your income tax. Most self-employed people pay both SE tax and income tax on their earnings.