Self-Employment Tax Calculator: Estimate Your SE Tax in Seconds
If you earn income as a freelancer, independent contractor, or sole proprietor, you are responsible for paying self-employment (SE) tax on top of ordinary income tax. This self-employment tax calculator estimates how much you owe based on your net self-employment income, using the current US federal rates. Unlike traditional employees whose employers cover half of Social Security and Medicare, self-employed workers pay both the employer and employee shares themselves.
The calculation follows the IRS method. First, your net earnings are multiplied by 92.35%, because only that portion of your income is subject to SE tax. The result is then taxed at 12.4% for Social Security, up to the annual Social Security wage base, and 2.9% for Medicare with no upper limit. Because the wage base changes every year, this field is editable so you can match the exact figure for your tax year. Adding the two components together gives your total self-employment tax.
One of the most valuable outputs is the deductible half. You can deduct one-half of your SE tax when calculating your adjusted gross income, which lowers your income tax bill. Our calculator shows this figure clearly so you can plan your quarterly estimated payments and avoid surprises at filing time. Knowing your effective SE tax rate also helps you set aside the right percentage of every invoice.
These rates are US federal figures and do not include state taxes, the additional 0.9% Medicare surtax on high earners, or ordinary federal income tax. Use this tool for planning, then confirm the final numbers with a tax professional. To round out your financial planning, try our salary calculator, estimate take-home pay with the paycheck calculator, or bill clients cleanly with the invoice generator.