Calculate Self Employment Tax at 15.3% Rate with Deductions

Calculate self-employment taxes, quarterly payments & deductions. Estimate tax liability for freelancers, contractors & business owners. Free tax planning tool for independent workers.

Calculate self-employment tax (Social Security and Medicare taxes) for freelancers, contractors, and business owners. Estimate quarterly payments and understand your total tax obligations.

Understanding Self-Employment Tax

Self-employment tax consists of:

Key Self-Employment Tax Facts

Reducing Self-Employment Tax

Strategies to minimize self-employment tax:

Note: This calculator provides estimates for planning purposes. Consult a tax professional for complex situations and final tax preparation.

Related Calculators

Quarterly Tax Calculator (US)

Frequently Asked Questions

How is self-employment tax calculated and what rates apply?

Self-employment tax consists of Social Security tax (12.4%) and Medicare tax (2.9%), totaling 15.3% on net earnings from self-employment. You pay both the employer and employee portions. Social Security tax applies to earnings up to the annual wage base ($160,200 in 2024), while Medicare tax applies to all earnings. Additional Medicare tax of 0.9% applies to earnings over $200,000 for single filers or $250,000 for married filing jointly.

What deductions can I take to reduce self-employment tax?

You can deduct half of your self-employment tax as a business expense on your income tax return. This deduction reduces your adjusted gross income but not your self-employment tax itself. To reduce SE tax, focus on legitimate business deductions like office expenses, equipment, professional services, marketing costs, and business-related travel. Net earnings from self-employment are calculated as gross income minus business expenses, then multiplied by 92.35% for SE tax purposes.

Do I need to make quarterly estimated tax payments for self-employment tax?

Yes, if you expect to owe $1,000 or more in total taxes (including self-employment tax), you generally must make quarterly estimated tax payments. SE tax is not withheld from your earnings like regular employment, so you're responsible for paying it throughout the year. Quarterly payments are due on January 15, April 15, June 17, and September 16 for the previous quarter's earnings. Failure to make adequate quarterly payments may result in penalties.