Self-Employment Tax Calculator
Estimate your self-employment tax on 1099 or freelance income for 2025 or 2024. See your Social Security tax, Medicare tax, federal income tax, and quarterly estimated payment amounts.
SE Tax
$14,130Federal Income Tax
$11,895Total Tax
$26,024Effective Rate
26.02%Your 26.0% effective rate is above the national median of 15.6% for incomes $100k–$150k.
Based on IRS Statistics of Income data. Individual results vary.
Why this number?
As self-employed, you pay both the employer and employee portions of FICA — that's 15.3% on net earnings up to the Social Security wage base, plus 2.9% Medicare above that.
For your income range ($100k–$150k), the national median effective rate is 15.6%. Your rate is 10.4pp above the median.
Quarterly Estimated Tax Payment
$6,506
Due: Apr 15, Jun 15, Sep 15, Jan 15
| Item | Amount |
|---|---|
| Gross Income | $100,000 |
| Business Expenses | -$0 |
| Net Profit | $100,000 |
| SE Tax Base (92.35%) | $92,350 |
| Social Security Tax (12.4%) | ($11,451) |
| Medicare Tax (2.9%+) | ($2,678) |
| Self-Employment Tax | ($14,130) |
| Half SE Tax Deduction | $7,065 |
| Federal Income Tax | ($11,895) |
| Total Tax | ($26,024) |
How self-employment tax works
SE tax rate
Self-employed individuals pay both the employer and employee portions of FICA: 15.3% total (12.4% Social Security + 2.9% Medicare) on 92.35% of net earnings.
Deductible half
You can deduct 50% of your SE tax from adjusted gross income. This is an above-the-line deduction available whether you itemize or take the standard deduction.
Quarterly estimated tax
Self-employed must pay estimated taxes quarterly (Apr 15, Jun 15, Sep 15, Jan 15). Missing a payment triggers an underpayment penalty.
QBI deduction
Qualified Business Income deduction allows eligible self-employed to deduct up to 20% of their qualified business income, subject to income limits and business type.
How SE tax is calculated, step by step
Self-employment tax is FICA for people who work for themselves. A W-2 employee splits FICA with their employer (7.65% each); a sole proprietor, partner, or single-member LLC owner pays both halves — 15.3% — on their net business profit. The IRS calculates it on Schedule SE in four steps:
- Take 92.35% of net earnings. You multiply net business profit by 0.9235 first. This removes the employer-half of FICA from the base, mirroring the fact that a W-2 worker's employer share isn't part of their taxable wage. On $100,000 of profit, the base is $92,350.
- 12.4% Social Security up to the wage base. The Social Security portion applies only up to the annual wage base ($176,100 in 2025). Earnings above that are not subject to the 12.4%.
- 2.9% Medicare with no cap. The Medicare portion applies to all of the 92.35% base, with no ceiling.
- 0.9% Additional Medicare over the threshold. High earners add 0.9% on earnings above $200,000 (single) or $250,000 (married filing jointly). This is not matched by the half-deduction below.
Finally, you deduct half of the SE tax (the 15.3% portion, not the 0.9% surtax) above the line on Schedule 1, which lowers your income tax — but not the SE tax itself. Compare the W-2 side of the same earnings with the FICA calculator.
Worked examples (2025)
Freelancer, $60,000 net profit
- SE base: $60,000 × 92.35% = $55,410
- Social Security 12.4%: $6,870.84
- Medicare 2.9%: $1,606.89
- SE tax ≈ $8,478; half deductible ≈ $4,239
Consultant, $250,000 net profit
- SE base: $250,000 × 92.35% = $230,875
- Social Security caps at the $176,100 wage base, not the full base
- Medicare 2.9% applies to all $230,875; the 0.9% surtax applies over $200,000
- Most of the marginal cost above the wage base is just the 2.9% (+0.9%) Medicare, not the full 15.3%
The second example shows why SE tax is not a flat 15.3% — once you pass the Social Security wage base, the marginal SE rate drops sharply to the Medicare components only.
The 20% QBI deduction stacks on top
SE tax and income tax are separate bills. After SE tax, your business profit (less the half-SE deduction) flows to your 1040 as ordinary income — but the §199A Qualified Business Income deduction can shelter up to 20% of qualified business income from income tax (it does not reduce SE tax). It phases out for specified service businesses (consulting, law, health, accounting) above the income thresholds, and is limited by W-2 wages and property for others.
Model it with the §199A QBI deduction calculator and your full federal bill with the federal income tax calculator.
Legitimate ways to cut SE tax
Consider an S-corp election
An S-corp pays you a "reasonable salary" (subject to FICA) and lets remaining profit pass through free of SE tax. The savings must outweigh payroll, filing, and compliance costs — usually only worth it above roughly $80k–$100k of stable profit.
Fund a SEP-IRA or solo 401(k)
Retirement contributions reduce income tax (not SE tax) but are one of the largest levers a sole proprietor has. A solo 401(k) allows both employee and employer contributions on the same profit.
Claim every business deduction
SE tax is on net profit, so legitimate expenses — home office, mileage, health insurance, equipment — lower the base before the 15.3% applies. See the home office deduction calculator.
Pay quarterly to avoid penalties
SE tax isn't withheld, so use quarterly estimated payments to cover both SE and income tax and dodge the underpayment penalty.
Frequently asked questions
What is the self-employment tax rate?
The self-employment tax rate is 15.3%, which consists of 12.4% for Social Security and 2.9% for Medicare. This is effectively double the employee-only FICA rate because self-employed individuals pay both the employee and employer portions. In 2025, the Social Security portion applies to the first $176,100 of net self-employment earnings.
Can I deduct half of my SE tax?
Yes, you can deduct 50% of your self-employment tax as an above-the-line deduction on Schedule 1. This deduction reduces your adjusted gross income (AGI) but does not reduce the SE tax itself. It mirrors the fact that a W-2 employer pays half of FICA and that portion is not taxable to the employee. The 0.9% Additional Medicare surtax is not part of the deductible half.
How do quarterly estimated payments work?
You must make quarterly estimated payments if you expect to owe $1,000 or more for the year. Payments are due April 15, June 15, September 15, and January 15. Use Form 1040-ES; each payment should cover both income tax and SE tax. Safe-harbor rules (paying 100%/110% of last year's tax) avoid the underpayment penalty even if you underestimate.
What is the 92.35% SE tax factor?
Before calculating SE tax you multiply net self-employment income by 92.35% (0.9235). This removes the employer-equivalent portion of FICA that W-2 workers never pay tax on. So $100,000 of net profit is taxed on a $92,350 base.
Do I still owe SE tax if I also have a W-2 job?
Yes. Your W-2 wages and self-employment profit are tracked separately for Social Security, but they share one wage base. If your W-2 wages already hit the Social Security wage base, the 12.4% portion no longer applies to your SE earnings — only the 2.9% Medicare (and 0.9% surtax over the threshold) does. The calculator and the FICA calculator together show the combined picture.
Does an S-corp avoid self-employment tax?
Partly. An S-corp owner takes a reasonable W-2 salary (subject to FICA) and can take remaining profit as distributions that are not subject to SE tax. The IRS requires the salary to be reasonable for the work performed. The FICA savings must beat the added payroll and compliance cost — generally relevant above roughly $80k–$100k of steady profit.
Does the QBI deduction lower my SE tax?
No. The 20% §199A QBI deduction reduces your income tax only; SE tax is computed on net business profit before QBI. The two are separate calculations on different lines of your return.
Sources
Related insights
Use these guides for rule explanations, planning context, and follow-up questions beyond the calculator result.
Self-employment tax guide
Schedule SE basics, deductible half of SE tax, and quarterly payment rules.
How self-employment tax works
Why the 92.35% factor exists and how SE tax differs from employee withholding.
Quarterly estimated tax payments explained
Deadlines, safe harbors, and what to do if your income changes mid-year.
Your self-employment tax also depends on where you live.
State taxes can significantly change your total liability. See how it varies.
Related Calculators
Quarterly Estimated Tax
Four installments (4/15, 6/15, 9/15, 1/15), safe harbor 90%/100%
Federal Income Tax Calculator
10–37% brackets, $15,750 standard deduction, progressive calculation
FICA & Social Security
6.2% SS to $176,100, 1.45% Medicare, 0.9% additional Medicare
1099 Tax Calculator
Self-employment tax + QBI deduction + quarterly estimated
Home Office Deduction
$5/sqft simplified method ($1,500 max) vs regular method
Section 199A QBI Deduction
20% qualified business income, W-2 wage / asset limits, phase-outs