Self-Employment Tax Calculator
Estimate your 1099 taxes quickly. Find out how much you should set aside for Self-Employment Tax (Social Security and Medicare) and Federal Income Tax.
Business Income
How Self-Employment Tax Works
If you work for yourself — as a freelancer, independent contractor, sole proprietor, or gig worker — you are responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This combined obligation is called Self-Employment Tax (SE Tax) and is reported on Schedule SE of your federal tax return.
The Self-Employment Tax Rate
The total self-employment tax rate is 15.3% of your net self-employment earnings:
2025 Self-Employment Tax Breakdown
| Component | Rate | Income Limit |
|---|---|---|
| Social Security | 12.4% | First $176,100 |
| Medicare | 2.9% | No limit |
| Additional Medicare | +0.9% | Above $200,000 (Single) |
| Total SE Tax | 15.3% | On 92.35% of net earnings |
How Net Earnings Are Calculated
Your SE tax is not calculated on your gross income. Instead, you multiply your net self-employment earnings by 92.35% (0.9235). This adjustment accounts for the employer-equivalent portion and brings your taxable amount in line with what a traditional employee would pay.
Tax Deductions for the Self-Employed
- 50% SE Tax Deduction: You can deduct half of your self-employment tax from your adjusted gross income (an "above the line" deduction that reduces your income tax).
- Business Expenses: Legitimate business expenses (home office, equipment, mileage, software) reduce your net earnings before SE tax is calculated.
- Qualified Business Income (QBI): The Section 199A deduction may allow you to deduct up to 20% of qualified business income.
Frequently Asked Questions
What is the self-employment tax rate for 2025?
The self-employment tax rate is 15.3%, consisting of 12.4% for Social Security (on the first $176,100 of net earnings) and 2.9% for Medicare (on all net earnings). High earners may also owe an additional 0.9% Medicare surtax.
Can I deduct self-employment tax?
Yes. You can deduct 50% of your self-employment tax from your adjusted gross income when filing your federal return. This is an "above the line" deduction — you don't need to itemize to claim it.
Do I need to pay estimated quarterly taxes?
Yes, if you expect to owe $1,000 or more in tax for the year. Self-employed individuals must make quarterly estimated payments (Form 1040-ES) due in April, June, September, and January to avoid underpayment penalties.