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Calculation Machine

Self-Employment Tax Calculator

SE tax, the deductible half and what to set aside quarterly.

Reviewed by the Calculation Machine team · Updated 24 October 2026 · How we check our maths

Your values

ⓘ Live results

Results
Self-employment tax
$11,021.05
Estimated income tax
$13,048.11
Total to set aside
$24,069.15
Quarterly payment
$6,017.29
Deductible half of SE tax
$5,510.52

Quick answer

US self-employment tax is 15.3% of 92.35% of your net self-employment profit: 12.4% for Social Security (up to the annual wage base) plus 2.9% for Medicare. Half of it is deductible from income. On $78,000 of net profit, SE tax is $78,000 × 0.9235 × 0.153 = $11,021, and $5,511 of that is deductible.

What the Self-Employment Tax calculator does

This calculator estimates the self-employment tax on your net business profit, adds an income-tax estimate at the rate you choose, and divides the total into four quarterly estimated payments. It is built for freelancers, sole proprietors, single-member LLC owners, gig workers and anyone with 1099 income.

Employees split Social Security and Medicare with their employer; when you work for yourself you pay both halves. That is why freelancers are often surprised by their first tax bill, and why setting money aside from every payment matters.

Enter net profit — revenue minus deductible business expenses, the figure on Schedule C — not gross receipts. The income-tax line is a simple estimate: enter your expected effective rate, after the standard deduction and other deductions, and add state tax if your state has an income tax. For full federal brackets, use the income tax calculator; for scheduling payments, see the quarterly estimated tax calculator.

The formula

Net SE earnings = profit × 0.9235 SE tax = min(net SE earnings, wage base) × 12.4% + net SE earnings × 2.9% Income tax ≈ (profit − SE tax ÷ 2) × income tax rate Quarterly payment = (SE tax + income tax) ÷ 4

Formula variables
SymbolMeaningUnit
profitNet self-employment profit after business expenses (Schedule C line 31 or equivalent)$ per year
0.9235Adjustment that mirrors the employer-half deduction an employee's wages get (1 − 0.0765)—
wage baseAnnual cap on earnings subject to the 12.4% Social Security tax; set by SSA each year. The calculator uses $168,600 (the 2024 figure)$
income tax rateYour estimated effective federal (plus state) income tax rate%

The method follows IRS Schedule SE. Two items are not modeled: the 0.9% Additional Medicare Tax on earnings above $200,000 (single) or $250,000 (married filing jointly), and the higher Social Security wage base in later years ($176,100 for 2025). Above about $180,000 of profit, actual SE tax will be somewhat higher than shown. If net SE earnings (profit × 0.9235) are under $400, no SE tax is due. Wages from a job count toward the same wage base. This page also serves searches for a side hustle tax calculator — the same rules apply to part-time self-employment income.

Worked examples

Full-time freelancer

A freelance designer with $78,000 of net profit after expenses, estimating an 18% effective federal and state income tax rate.

Inputs

  • Net self-employment profit78000 $
  • Estimated income tax rate18 %

Result

  • Self-employment tax$11,021.05
  • Estimated income tax$13,048.11
  • Total to set aside$24,069.15
  • Quarterly payment$6,017.29
  • Deductible half of SE tax$5,510.52

SE tax is about $11,021 and the estimated total is $24,069, or roughly $6,017 per quarter. Moving about 31% of each client payment into a tax savings account would cover it.

Side hustle alongside a job

An employee who earns $18,000 net from weekend rideshare and delivery work, in the 12% federal bracket from their salary.

Inputs

  • Net self-employment profit18000 $
  • Estimated income tax rate12 %

Result

  • Self-employment tax$2,543.32
  • Estimated income tax$2,007.40
  • Total to set aside$4,550.72
  • Quarterly payment$1,137.68
  • Deductible half of SE tax$1,271.66

The side income adds about $2,543 of SE tax plus around $2,007 of income tax — $4,551 in total. Raising W-4 withholding at the day job is an alternative to making quarterly payments.

Consultant in a higher bracket

An independent consultant netting $140,000, estimating a 24% combined effective income tax rate.

Inputs

  • Net self-employment profit140000 $
  • Estimated income tax rate24 %

Result

  • Self-employment tax$19,781.37
  • Estimated income tax$31,226.24
  • Total to set aside$51,007.61
  • Quarterly payment$12,751.90
  • Deductible half of SE tax$9,890.69

SE tax is about $19,781 and the set-aside is roughly $12,752 a quarter. At this income, an S corporation election or a solo 401(k) is often worth discussing with a tax professional.

How the 15.3% breaks down

Self-employment tax combines the employee and employer shares of FICA tax.

Components of self-employment tax
PartRateApplies to
Social Security (OASDI)12.4%Net SE earnings up to the annual wage base
Medicare (HI)2.9%All net SE earnings, no cap
Additional Medicare Tax0.9%Earnings above $200,000 single / $250,000 joint (not modeled here)
Deduction for half of SE tax50% of SE taxReduces income subject to income tax, not SE tax itself

Quarterly estimated tax deadlines and safe harbors

The IRS expects tax to be paid as income is earned. If you expect to owe $1,000 or more for the year after withholding, make estimated payments with Form 1040-ES. Due dates are usually:

  • April 15 for January–March income
  • June 15 for April–May
  • September 15 for June–August
  • January 15 of the next year for September–December

When a date falls on a weekend or holiday, it moves to the next business day. You avoid the underpayment penalty if your payments cover at least 90% of this year's tax or 100% of last year's tax (110% if last year's adjusted gross income was over $150,000).

Legal ways to reduce self-employment tax

  • Track every business expense. Mileage, software, a home office used regularly and exclusively for work, and equipment all reduce net profit, which lowers both SE and income tax.
  • Retirement contributions to a SEP IRA or solo 401(k) reduce income tax but not SE tax, because SE tax is calculated before those deductions.
  • Health insurance premiums for self-employed people are deductible for income tax, again not for SE tax.
  • S corporation election: owners pay payroll tax only on a reasonable salary and take the rest as distributions. It adds payroll and accounting costs, so it usually pays off only at higher profits — get professional advice before switching.

Set your prices with tax in mind; the freelance rate calculator builds it into an hourly rate.

How to use the Self-Employment Tax Calculator

  1. 1Find your net profit: gross receipts minus deductible business expenses. Use last year's Schedule C or your bookkeeping year to date, annualized.
  2. 2Enter it as a yearly figure, even if you are only part way through the year.
  3. 3Enter an estimated effective income tax rate — federal plus state — after deductions, not your top bracket.
  4. 4Read the SE tax, total to set aside and the quarterly payment, then schedule those payments for each IRS due date.

Frequently asked questions

What percentage should I set aside for taxes when self-employed?

Many freelancers set aside 25–35% of net profit. SE tax alone takes about 14.1% of profit (15.3% × 0.9235), and income tax comes on top depending on your bracket and state.

Do I have to pay self-employment tax on a small side income?

Yes, once your net earnings from self-employment (profit × 0.9235) reach $400 for the year. You may still owe income tax below that amount.

Is self-employment tax the same as income tax?

No. SE tax funds Social Security and Medicare and is owed on top of regular income tax. It is calculated on Schedule SE and added to your Form 1040.

Can I deduct self-employment tax?

You can deduct half of it as an adjustment to income, which lowers your income tax. The deduction does not reduce the SE tax itself.

Does having a full-time job affect self-employment tax?

Only for high earners. W-2 wages count toward the Social Security wage base first, so if your wages plus SE earnings exceed the cap, the 12.4% portion stops at the cap. The 2.9% Medicare portion always applies.

References

  • Topic No. 554, Self-Employment Tax — Internal Revenue Service
  • Schedule SE (Form 1040), Self-Employment Tax, and instructions — Internal Revenue Service
  • Form 1040-ES, Estimated Tax for Individuals — Internal Revenue Service
  • Contribution and Benefit Base — Social Security Administration

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