Self-Employment Tax Calculator
Estimate the self-employment tax you owe on net earnings, plus the deductible half you can write off.
- Social Security (12.4%)
- $5,725.70
- Medicare (2.9%)
- $1,339.08
Estimate based on 2024 federal figures only. Not tax advice — your actual bill depends on credits, deductions, and your state. Check with a tax professional or the IRS before filing.
How it works
When you work for yourself, nobody's splitting the Social Security and Medicare bill with you. Employees pay half and their employer covers the other half; the self-employed pay both sides, which is what self-employment tax is.
The math starts by multiplying your net earnings by 92.35% — that adjustment exists because you're taxed on your business's profit, not the full amount. The result is hit with 12.4% for Social Security (only up to the $168,600 wage base in 2024) and 2.9% for Medicare, totaling the familiar 15.3%.
There's a silver lining the calculator flags: you can deduct half of your self-employment tax from your income before figuring income tax. On $50,000 of net earnings, that's roughly $7,065 in SE tax with about $3,532 deductible — worth remembering when you set aside money for quarterly payments.
Frequently asked questions
Why is my income multiplied by 92.35%?
It's a built-in adjustment so the self-employed aren't taxed on money that stands in for the employer's share of payroll tax. Multiplying net earnings by 0.9235 gives the base the 15.3% actually applies to, which keeps things roughly fair versus employees.
What is the deductible half?
You can subtract half of your self-employment tax when calculating your income tax — it mirrors the employer-side deduction a business would get. It doesn't cut the SE tax itself, but it lowers your taxable income for the separate income-tax calculation.
Do I owe this on top of income tax?
Yes. Self-employment tax funds Social Security and Medicare and is completely separate from federal income tax. A profitable freelancer typically owes both, which is why quarterly estimated payments matter so much when you're self-employed.