Self-Employment
Tax Calculator
For freelancers, gig workers, and independent contractors
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Add your income and deductions, then click Calculate.
Quarterly Payment Schedule
Tax Rate Waterfall
Deduction Impact
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To cover your taxes, set aside 0% of every payment you receive.
“Note: This calculator provides estimated self-employment taxes and quarterly payment projections for educational and planning purposes only. It does not constitute official CPA, legal, or tax advice. Always consult with a licensed tax professional regarding your specific business structure, allowable deductions, and IRS obligations.”
How to Use This Self-Employment Tax Calculator
Enter your total self-employment income for the year and any deductible business expenses. Our calculator shows your net profit, self-employment tax owed, your deduction for half the SE tax, estimated federal income tax, and the quarterly estimated tax payments you should be making to avoid IRS penalties.
What is Self-Employment Tax?
When you are employed by a company, your employer pays half of your Social Security and Medicare taxes (known as FICA taxes), and you pay the other half through payroll deductions. When you are self-employed, you pay both halves yourself — this combined amount is called the Self-Employment (SE) Tax.
| Tax Component | Rate | Income Limit (2026) |
|---|---|---|
| Social Security (both halves) | 12.4% | First $176,100 of net earnings |
| Medicare (both halves) | 2.9% | No limit |
| Additional Medicare Tax | 0.9% | Net earnings above $200,000 (single) |
| Total SE Tax Rate | 15.3% | On first $176,100 of net earnings |
SE Tax Calculation Example
| Step | Calculation | Amount |
|---|---|---|
| 1. Gross self-employment income | Total revenue | $80,000 |
| 2. Business expenses (deductible) | Home office, equipment, software, etc. | -$15,000 |
| 3. Net self-employment profit | $80,000 – $15,000 | $65,000 |
| 4. SE tax base (92.35% of net profit) | $65,000 × 0.9235 | $60,028 |
| 5. SE tax owed (15.3%) | $60,028 × 0.153 | $9,184 |
| 6. Deduction for half of SE tax | $9,184 ÷ 2 | -$4,592 |
| 7. Adjusted gross income | $65,000 – $4,592 | $60,408 |
| 8. Estimated federal income tax (22% bracket) | Approx. | ~$7,500 |
| Total estimated tax burden | SE tax + income tax | ~$16,684 |
| Quarterly payment (÷4) | $16,684 ÷ 4 | ~$4,171/quarter |
2026 Quarterly Estimated Tax Due Dates
| Payment Period | Due Date | Covers Income Earned |
|---|---|---|
| Q1 2026 | April 15, 2026 | January 1 – March 31 |
| Q2 2026 | June 16, 2026 | April 1 – May 31 |
| Q3 2026 | September 15, 2026 | June 1 – August 31 |
| Q4 2026 | January 15, 2027 | September 1 – December 31 |
If you miss a quarterly payment or underpay, the IRS charges a penalty of approximately 8% annually on the underpaid amount. To avoid penalties, pay at least 100% of last year’s tax bill (110% if your prior year AGI exceeded $150,000) spread across the four quarters. Check with our self employment tax calculator.
Top Tax Deductions for Self-Employed People
| Tax Item | Employee ($65,000 salary) | Self-Employed ($65,000 profit) |
|---|---|---|
| Social Security tax | 6.2% employee share = $4,030 | 12.4% = $8,060 |
| Medicare tax | 1.45% = $943 | 2.9% = $1,885 |
| Employer pays (hidden) | 7.65% = $4,973 | You pay this too |
| Total FICA/SE tax | $9,946 (split with employer) | $9,945 (you pay all) |
| SE tax deduction benefit | N/A | Deduct $4,973 from income |
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Frequently Asked Questions
The self-employment tax rate is 15.3% — comprised of 12.4% for Social Security (on the first $176,100 of net earnings) and 2.9% for Medicare (no income limit). An additional 0.9% Medicare surtax applies to net earnings above $200,000 for single filers. The tax is applied to 92.35% of your net profit (not 100%), because you deduct the employer-equivalent portion before calculating. You can then deduct half the SE tax paid from your gross income.
You must pay SE tax if your net self-employment income is $400 or more in a year. Even small amounts of freelance income are subject to SE tax if they cross the $400 threshold. Below $400, you don’t owe SE tax, though you may still need to report the income on your federal return depending on your total income and filing status.
Yes — the most effective strategies are: (1) maximize legitimate business deductions to reduce net profit (the SE tax base), (2) elect S-Corporation status once your profit exceeds $40,000–$50,000, which can significantly reduce SE tax by splitting income between salary (SE taxable) and distributions (not SE taxable), and (3) contribute to a SEP-IRA or Solo 401(k), which reduces both income tax and the amount subject to SE tax calculations.
If you owe more than $1,000 in taxes at year-end and didn’t make adequate quarterly payments, the IRS charges an underpayment penalty — currently approximately 8% annually on the underpaid amount. You also owe the full tax bill plus any interest when you file. For most self-employed people, setting aside 25%–30% of every payment received and making quarterly estimated payments prevents any surprises at tax time.
An LLC by itself does not reduce SE tax — a single-member LLC is taxed identically to a sole proprietor. However, electing S-Corporation tax status (either through an LLC or a corporation) allows you to split income between a “reasonable salary” (subject to payroll/SE taxes) and distributions (not subject to SE tax). This strategy typically saves $3,000–$10,000+ annually for self-employed individuals earning $60,000+ in profit, but involves additional compliance costs and payroll administration. Consult a CPA before making this decision.