Self-Employment Tax Calculator (US)
Calculate your US self-employment tax (Social Security + Medicare) on freelance or business income.
Includes the deductible half and net income after SE tax.
Self-Employment Tax (US)
When you work for an employer, they pay half of your Social Security and Medicare taxes. When you are self-employed, you pay both halves — that is the self-employment tax.
The two-step calculation:
Step 1: Multiply net self-employment income by 92.35%
- This 7.65% reduction accounts for the deductible employer-equivalent portion
Step 2: Apply the SE tax rate to that adjusted amount
SE Tax = Net SE Income × 0.9235 × 15.3%
The 15.3% breaks down as:
- 12.4% — Social Security (on first $168,600 of wages+SE income in 2024)
- 2.9% — Medicare (on all SE income)
- +0.9% — Additional Medicare on income above $200,000 (single) or $250,000 (MFJ)
Deduction benefit: You can deduct half of your SE tax from your gross income on Schedule 1, Form 1040. This reduces your regular income tax (but not SE tax itself).
Deductible amount = SE Tax ÷ 2
Example:
- Freelance income: $60,000
- Adjusted: 60,000 × 0.9235 = $55,410
- SE Tax: 55,410 × 0.153 = $8,478
- Deductible half: $4,239 (reduces taxable income for regular income tax)
Quarterly estimated payments: The IRS expects self-employed individuals to pay taxes quarterly. Underpaying by more than $1,000 triggers a penalty.
Approximate quarterly payment = (SE Tax + estimated income tax) ÷ 4
Who pays self-employment tax?
- Freelancers and independent contractors
- Sole proprietors
- Partners in a partnership
- LLC members (single-member or pass-through)
- Anyone with net self-employment income of $400 or more