Self-Employed Tax Calculator — Free Online Tool
Freelancers and sole proprietors pay both halves of payroll tax — the self-employment tax. This self employed tax calculator estimates your Social Security and Medicare liability from net earnings, plus what to pay each quarter.
What is the Self-Employed Tax Calculator?
Employees split payroll tax with their employer; the self-employed pay both halves: 12.4% for Social Security (up to the annual wage base — $176,100 for 2025) plus 2.9% for Medicare on all earnings, 15.3% combined. It's calculated on 92.35% of net earnings, a quirk that approximates the employer-half deduction employees effectively get.
Because nothing is withheld from your pay, the IRS expects quarterly estimated payments (April, June, September, January) — underpay significantly and penalties apply. Note this self employed tax calculator covers only SE tax: you'll also owe federal (and possibly state) income tax on top. A common rule of thumb is setting aside 25–30% of profit for all taxes combined.
How to use this calculator
- Enter your annual net earnings (profit after business expenses).
- Click Calculate SE Tax.
- See the Social Security and Medicare breakdown plus your quarterly estimated payment.
Formula
Frequently asked questions
What is the self-employment tax rate?
15.3% total: 12.4% Social Security (up to the $176,100 wage base for 2025) plus 2.9% Medicare on all net earnings.
Why is SE tax calculated on 92.35% of earnings?
It approximates the deduction employees effectively receive, since employers deduct their half of payroll tax. The 7.65% reduction mirrors that.
Do I still owe income tax on top of SE tax?
Yes — self-employment tax is separate from federal and state income tax. Budget roughly 25–30% of profit for everything combined.
When are quarterly estimated payments due?
Typically April 15, June 15, September 15, and January 15. You can pay online via IRS Direct Pay or EFTPS.