Self-Employment Tax Calculator

Self-employment tax is Social Security and Medicare for people who work for themselves. If you earn $400 or more in net profit from 1099, freelance, or gig work, you owe it — it covers the employer and employee halves of FICA that a W-2 job would split with you (IRS).

First, multiply your net profit by 92.35% to get net earnings subject to SE tax. Then apply 12.4% for Social Security (up to the annual wage base) plus 2.9% for Medicare, for a combined 15.3%. The 92.35% factor accounts for the deductible employer-equivalent portion (IRS Schedule SE).

If you expect to owe $1,000 or more after any withholding, the IRS expects quarterly estimated payments on April 15, June 15, September 15, and January 15. No employer withholds for you, so set the money aside each time you get paid and pay on schedule to avoid an underpayment penalty.

Yes — you can deduct half of your SE tax (the employer-equivalent portion) as an above-the-line adjustment on your income tax return. It lowers your taxable income but not the SE tax itself. This calculator shows that deductible half.

No — they're separate. SE tax (15.3%) funds Social Security and Medicare. Income tax is calculated on top of that using federal and state brackets. Add an income-tax bracket in the calculator to see a combined amount to set aside from each payment.

Net profit is your total 1099 / gig revenue minus your deductible business expenses (mileage, supplies, phone, platform fees, home office). SE tax applies to the net number, not your gross — so tracking expenses directly lowers what you owe.