Are You Self-Employed?
See How Much You Could Save on Taxes
Use our free self employed tax calculator. Get your estimate in 2 minutes.
What Is Self-Employment Tax?
Self-employment tax is a 15.3% tax on net self-employment income that covers Social Security (12.4%) and Medicare (2.9%). Unlike W-2 employees whose employers pay half, self-employed individuals pay the full amount.
15.3% Tax Rate
Combined Social Security (12.4%) and Medicare (2.9%) on net earnings
Deductible Half
You can deduct 50% of self-employment tax from your adjusted gross income
$400+ Threshold
Self-employment tax applies if net earnings exceed $400 annually
Self-Employed Tax Deductions You Might Be Missing
Most self-employed individuals leave thousands in deductions on the table. Our calculator identifies which ones apply to your business.
Home Office Deduction
Deduct a portion of rent, utilities, and home expenses based on dedicated workspace
Vehicle & Mileage
Business miles, parking, tolls, and vehicle expenses for client visits
Health Insurance Premiums
Self-employed can deduct 100% of health, dental, and long-term care premiums
Retirement Contributions
SEP-IRA, Solo 401(k), or SIMPLE IRA contributions reduce taxable income
Business Equipment
Section 179 allows immediate deduction of computers, software, and equipment
Professional Services
Accountants, lawyers, consultants, and other professional fees
Marketing & Advertising
Website costs, ads, business cards, and promotional materials
Education & Training
Courses, certifications, and books related to your business
Not sure which deductions apply to you?
How Much Should Self-Employed Set Aside for Taxes?
A common rule of thumb is to set aside 25-30% of your net income for federal taxes. Here's a breakdown:
Federal Tax Components
- Self-Employment Tax:15.3%
- Federal Income Tax:10-37%
- Recommended Reserve:25-30%
Quarterly Estimated Payments
- • Q1: April 15
- • Q2: June 15
- • Q3: September 15
- • Q4: January 15 (following year)
Get a precise estimate based on your actual income and deductions
Who Needs to Pay Self-Employment Tax?
Self-Employment Tax Applies To:
- Freelancers and independent contractors
- Sole proprietors
- 1099 workers (gig economy)
- Side hustle income over $400
- Small business owners
- LLC members (single-member)
- Partnership partners
Industries We Help:
- Real estate agents & brokers
- Consultants & coaches
- Rideshare & delivery drivers
- Contractors & tradespeople
- Content creators & influencers
- E-commerce sellers
- Healthcare professionals
Self Employed Tax Calculator FAQ
How do I calculate self-employment tax?
Self-employment tax is 15.3% of your net self-employment income (12.4% Social Security + 2.9% Medicare). First, calculate your net profit (revenue minus expenses), then multiply by 92.35% (the taxable portion), then apply the 15.3% rate. Our calculator does this automatically.
Can I reduce my self-employment tax?
Yes! You can reduce self-employment tax by: maximizing business deductions to lower net income, hiring family members, forming an S-Corp (in some cases), contributing to retirement accounts, and properly categorizing income. Our calculator identifies savings opportunities specific to your situation.
What's the difference between self-employment tax and income tax?
Self-employment tax specifically covers Social Security and Medicare (15.3%), while income tax is the federal tax on your taxable income (10-37% depending on bracket). Both apply to self-employed individuals, which is why the total tax burden can be 25-30%+.
Do I have to pay quarterly estimated taxes?
If you expect to owe $1,000+ in taxes for the year, the IRS requires quarterly estimated payments. Missing these can result in penalties. Our calculator helps you estimate quarterly payment amounts.
What if I have both W-2 and self-employment income?
Self-employment tax only applies to your self-employment income. Your W-2 income already has Social Security and Medicare withheld by your employer. However, your total income affects your income tax bracket.
Ready to See Your Tax Savings?
Join thousands of self-employed professionals who've discovered hidden deductions and reduced their tax burden.
Free • No SSN Required • 2 Minute Estimate