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Self-Employment Tax Calculator

Calculate Social Security and Medicare taxes for freelancers and self-employed individuals.

Inputs

$
$

Results

Total Self-Employment Tax
$9,890.69
Social Security Tax
$8,015.98
Medicare Tax
$1,874.71
Effective SE Rate
14.13%
Quarterly Payment
$2,472.67
Deductible Half of SE Tax
$4,945.34
Tax deduction on Form 1040

Disclaimer: This calculator provides estimates for informational purposes only. Results are not financial advice. Consult a qualified financial advisor for decisions about your specific situation. Actual rates, terms, and conditions may vary by lender and individual circumstances.

How Does the Self-Employment Tax Calculator Work?

Self-employment tax covers Social Security and Medicare contributions for people who work for themselves. Employees split these taxes 50/50 with their employer, but self-employed individuals pay both halves. The total self-employment tax rate is 15.3%, consisting of 12.4% for Social Security (on earnings up to $168,600 in 2024) and 2.9% for Medicare (on all earnings). Only 92.35% of net self-employment income is subject to SE tax, which accounts for the employer-equivalent portion. An additional 0.9% Medicare surtax applies to earnings above $200,000 for single filers ($250,000 for married filing jointly). The IRS allows you to deduct the employer-equivalent half of SE tax from your adjusted gross income, reducing your income tax.

Formula: SE Tax = (Net Profit × 0.9235) × 15.3%; Deductible Half = SE Tax / 2

How to Use This Calculator

Enter your total net self-employment earnings (gross income from all self-employment activities). Then enter your deductible business expenses such as supplies, software, home office costs, professional services, and business travel. The calculator computes your net profit and applies the SE tax formula, showing your Social Security tax, Medicare tax, total SE tax, quarterly estimated payments, and the deductible half of SE tax.

Example Calculation

Jordan is a freelance web developer who earned $95,000 in gross income and had $20,000 in business expenses.

  1. 1Gross self-employment income = $95,000
  2. 2Business expenses = $20,000
  3. 3Net profit = $95,000 - $20,000 = $75,000
  4. 4SE tax base = $75,000 × 0.9235 = $69,263
  5. 5Social Security tax = $69,263 × 12.4% = $8,589
  6. 6Medicare tax = $69,263 × 2.9% = $2,009
  7. 7Total SE tax = $8,589 + $2,009 = $10,598
  8. 8Deductible half = $10,598 / 2 = $5,299
Result: Jordan owes $10,598 in self-employment tax ($2,650 per quarter). The $5,299 deductible half reduces taxable income for income tax purposes.

Understanding Your Results

The quarterly payment amount is what you should send to the IRS each quarter (April 15, June 15, September 15, January 15) to avoid underpayment penalties. The deductible half is subtracted from your gross income on Form 1040 Schedule SE, reducing your income tax liability. Remember that self-employment tax is separate from income tax — you owe both. Use the Income Tax Calculator to estimate your federal income tax on top of SE tax.

Key Self-Employment Tax Factors

Social Security Cap

In 2024, only the first $168,600 of net earnings is subject to the 12.4% Social Security portion.

Medicare Has No Cap

The 2.9% Medicare tax applies to all net self-employment earnings with no upper limit.

Additional Medicare Tax

A 0.9% surtax applies to combined earnings exceeding $200,000 (single) or $250,000 (married filing jointly).

Deductible Half

You can deduct the employer-equivalent portion (50%) of SE tax from your adjusted gross income, lowering your income tax.

Tips & Best Practices

  • ✓Pay estimated taxes quarterly to avoid underpayment penalties. Set aside about 25-30% of net profit for both SE tax and income tax.
  • ✓Track all legitimate business expenses meticulously — every dollar of deduction saves 15.3 cents in SE tax plus your income tax rate.
  • ✓Consider contributing to a SEP-IRA or Solo 401(k) to reduce taxable income while saving for retirement.
  • ✓If your SE income is below $400, you are not required to pay self-employment tax.
  • ✓The home office deduction, business mileage, and health insurance premiums are commonly missed deductions for self-employed individuals.

Frequently Asked Questions

What counts as self-employment income?▾
Self-employment income includes earnings from freelancing, consulting, sole proprietorship, partnership income, gig economy work (rideshare, delivery), and any income reported on Form 1099-NEC or 1099-K. It does not include W-2 wages, investment income, rental income (in most cases), or income from S-corporations.
Why is the SE tax rate 15.3% instead of 7.65%?▾
Employees pay 7.65% (6.2% Social Security + 1.45% Medicare), and their employer matches the other 7.65%. Self-employed individuals are both the employee and employer, so they pay both halves for a total of 15.3%. However, the 92.35% adjustment and deductible half partially offset this double burden.
Can I reduce my self-employment tax?▾
The primary way to reduce SE tax is by maximizing legitimate business deductions to lower net profit. Forming an S-corporation may also help, as you can pay yourself a reasonable salary (subject to FICA) and take remaining profits as distributions (not subject to SE tax). Consult a tax professional before making entity changes.
Do I still owe SE tax if I also have a W-2 job?▾
Yes, but your W-2 wages count toward the Social Security wage base. If your W-2 wages are above $168,600, you would only owe the 2.9% Medicare portion on your SE income, not the 12.4% Social Security portion. The SE income is still subject to Medicare tax regardless of W-2 wages.
When are quarterly estimated taxes due?▾
For 2024, quarterly estimated tax payments are due April 15, June 15, September 15 (2024), and January 15 (2025). These payments should cover both self-employment tax and income tax. If you underpay, the IRS may charge penalties. Use Form 1040-ES to calculate and submit payments.
By CalcMaven Editorial TeamLast Updated: February 2026

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Free Self-Employment Tax Calculator — SE Tax 2024 | CalcMaven