Estimate your 2024–2025 self-employment tax (Social Security + Medicare), the deductible half, and your quarterly estimated payments — instantly and free.
When you work for an employer, you and your employer split the 15.3% payroll tax that funds Social Security and Medicare. As a self-employed person, sole proprietor, freelancer or 1099 contractor, you are effectively both parties — so you pay the full 15.3% yourself. This is what the IRS calls self-employment (SE) tax, and it is calculated separately from, and in addition to, your regular federal income tax.
SE tax is not charged on your entire net profit. First, the IRS multiplies your net self-employment earnings by 92.35% to arrive at your taxable base. That base is then subject to 12.4% for Social Security — but only up to the annual Social Security wage base ($168,600 in 2024) — and 2.9% for Medicare, which has no upper limit. If your combined earnings exceed certain thresholds, an additional 0.9% Medicare surtax applies to the excess. The calculator above accounts for the wage-base cap, any W-2 wages that already used up part of your Social Security limit, and the additional Medicare tier.
There is a meaningful offset built into the system: you may deduct one-half of your self-employment tax when calculating your adjusted gross income. This is an above-the-line deduction, meaning you get it whether or not you itemize. The calculator shows this figure separately so you can carry it into your income tax planning — pair it with our income tax calculator to see the full picture.
Because no employer is withholding tax from your income, the IRS expects you to pay as you earn through quarterly estimated payments if you will owe $1,000 or more for the year. The tool divides your estimated annual SE tax into four equal quarterly amounts as a starting point. Your true requirement also depends on income tax, credits and other income, so treat the number as a planning baseline and revisit it as your income changes. For a deeper walkthrough, read our self-employment tax guide and the estimated quarterly taxes guide.
Self-employed taxpayers have powerful, legitimate levers to reduce taxable income: the home office deduction, self-employed health insurance premiums, retirement contributions to a SEP-IRA or Solo 401(k), business mileage, and ordinary business expenses. Many of these are missed simply because people do not know they qualify. Our commonly missed self-employed deductions guide and the free checklist above walk through each one so you keep more of what you earn.
The self-employment tax rate is 15.3% — 12.4% for Social Security and 2.9% for Medicare. It is calculated on 92.35% of your net self-employment earnings. Social Security tax applies only up to the annual wage base ($168,600 for 2024); Medicare has no cap, and high earners pay an extra 0.9% above certain income thresholds.
Yes. You can deduct one-half of your self-employment tax as an above-the-line deduction when calculating your adjusted gross income. This calculator shows that deductible half separately so you can factor it into your income tax planning.
If you expect to owe $1,000 or more in tax for the year, the IRS generally requires quarterly estimated payments. This tool divides your estimated annual liability into four quarterly amounts as a starting point — your actual requirement depends on your total tax situation.
No. It is an educational planning tool based on published rates and standard formulas. It does not account for every deduction, credit, state tax, or special situation. For filing decisions, consult a qualified tax professional.
Net earnings are your business revenue minus your allowable business expenses (your Schedule C net profit). The calculator applies the standard 92.35% factor to that figure before applying the tax rates.