Self-Employment Tax Calculator
Estimate SE tax & what to set aside each quarter
Self-employed or freelancing in the US? Enter your net profit to estimate your self-employment tax and a quarterly amount to set aside so tax season isn't a shock. Below: why the rate is really 14.1% rather than 15.3%, a profit-to-tax chart, the deduction most people miss, the quarterly due dates, and the safe-harbour rule that stops penalties.
How self-employment tax works
SE tax is the self-employed version of the Social Security and Medicare taxes an employer would normally split with you. As an employee you pay 7.65% and your employer quietly pays the other 7.65%. Working for yourself, you are both, so you pay 15.3% — 12.4% Social Security plus 2.9% Medicare.
As a freelance tax calculator this starts from your net profit, meaning revenue after business expenses, not what you invoice. This is separate from and on top of income tax, which is the single most common surprise for people in their first year of freelancing.
Why the real rate is 14.1%, not 15.3%
SE tax applies to 92.35% of net profit, not all of it. That figure is not arbitrary: it is 100% minus 7.65%, and it exists so that self-employed people get the same treatment as employees, whose employer-side FICA is not part of their taxable wages.
15.3% × 92.35% = 14.13% of net profit. That is the number to hold in your head, and it stays flat at every profit level until the Social Security cap.
Above the cap the rate falls, because Social Security stops. In 2026 the wage base is $184,500, which after the 92.35% adjustment means the 12.4% portion switches off once net profit passes about $199,783. Medicare's 2.9% continues on every dollar with no ceiling.
Self-employment tax by net profit
SE tax alone, before any income tax. Used as a self employment tax estimator, these are the figures the calculator returns.
| Net profit | SE tax | Per quarter | As % of profit |
|---|---|---|---|
| $10,000 | $1,412.96 | $353.24 | 14.1% |
| $20,000 | $2,825.91 | $706.48 | 14.1% |
| $30,000 | $4,238.87 | $1,059.72 | 14.1% |
| $50,000 | $7,064.78 | $1,766.19 | 14.1% |
| $60,000 | $8,477.73 | $2,119.43 | 14.1% |
| $75,000 | $10,597.16 | $2,649.29 | 14.1% |
| $100,000 | $14,129.55 | $3,532.39 | 14.1% |
| $150,000 | $21,194.32 | $5,298.58 | 14.1% |
| $250,000 | $29,573.38 | $7,393.34 | 11.8% |
The perfectly flat 14.1% column is the useful takeaway. Until you clear roughly $200,000 in profit, SE tax is simply profit × 0.1413, and only the $250,000 row shows the cap starting to bite.
The half-SE deduction
You may deduct half of your SE tax from your income before income tax is calculated. This is an above-the-line adjustment, so you get it whether or not you itemise, and it applies even if you take the standard deduction. Working as a self employment tax deduction calculator, the tool applies it before estimating income tax.
On $60,000 of profit the SE tax is $8,477.73, so $4,238.87 comes off your income. At a 22% rate that deduction alone is worth about $933. It does not reduce the SE tax itself — only the income tax that sits on top.
Worked example: $60,000 of freelance profit
Net profit of $60,000, with the income tax rate field set to 22%. The field starts at 12%, so change it to follow along.
| Step | Working | Amount |
|---|---|---|
| Net profit | revenue less expenses | $60,000.00 |
| SE tax base | 60,000 × 92.35% | $55,410.00 |
| Social Security | 55,410 × 12.4% | $6,870.84 |
| Medicare | 55,410 × 2.9% | $1,606.89 |
| Self-employment tax | 6,870.84 + 1,606.89 | $8,477.73 |
| Half-SE deduction | 8,477.73 ÷ 2 | −$4,238.87 |
| Income subject to income tax | 60,000 − 4,238.87 | $55,761.13 |
| Estimated income tax | 55,761.13 × 22% | $12,267.45 |
| Total estimated tax | 8,477.73 + 12,267.45 | $20,745.18 |
| Set aside each quarter | 20,745.18 ÷ 4 | $5,186.29 |
That is 34.6% of profit, well above the "set aside 25 to 30%" rule of thumb, because 22% is a marginal rate applied to every dollar here. See the limitations below before treating it as your number.
Quarterly estimated tax due dates
Used as a quarterly tax calculator, the last row of the results is what to send in. Self-employed income has no withholding, so the IRS expects payment as you earn. Four instalments, and the quarters are famously uneven.
| Payment | Income earned | Due |
|---|---|---|
| Q1 | 1 January to 31 March | 15 April |
| Q2 | 1 April to 31 May (2 months) | 15 June |
| Q3 | 1 June to 31 August (3 months) | 15 September |
| Q4 | 1 September to 31 December (4 months) | 15 January |
Deadlines shift to the next business day when they fall on a weekend or holiday. The safe harbour rule is the one to know: pay at least 100% of last year's total tax (110% if your prior-year AGI was over $150,000), or 90% of this year's, and you avoid an underpayment penalty even if you end up owing more. For anyone with lumpy freelance income, paying last year's number in four equal parts is by far the simplest way to stay safe.
What this estimator does not include
The SE tax half of this calculation is exact. The income tax half is deliberately simple, and it runs high for most sole proprietors:
- No standard deduction. The rate is applied to all profit after the half-SE deduction. In reality the first $16,100 (single, 2026) is untaxed.
- No QBI deduction. Most sole proprietors can deduct a further 20% of qualified business income, which is a large omission.
- A flat rate, not brackets. Enter an effective rate rather than your top marginal rate for a closer figure.
- No state or local tax, no city business taxes, and no other income such as a spouse's W-2 wages.
- No additional Medicare tax, the extra 0.9% above $200,000 single or $250,000 married.
Because of the first two omissions, treat the total as a conservative ceiling. Setting that much aside and getting some back is a much better failure mode than the reverse.
How self-employed people lower the bill
- Track every legitimate expense. SE tax is charged on profit, so a dollar of genuine deductible cost saves 14.1% before income tax even starts.
- The home office and mileage deductions are the two most commonly left unclaimed by people who qualify.
- A SEP-IRA or solo 401(k) lets you shelter far more than a workplace plan. These reduce income tax, not SE tax.
- Self-employed health insurance premiums are deductible above the line.
- An S-corp election can cut SE tax at higher profits by splitting pay into salary and distributions, but it brings payroll filings and real costs. It rarely makes sense much below $80,000 to $100,000 of profit, and it is a conversation for an accountant.
Estimate only — not tax advice. Brackets, caps and deductions change and vary by situation and state. Confirm with a tax professional or the IRS.
How this self-employment tax calculator works out its numbers
Self-employment tax follows Schedule SE: net profit × 0.9235, then 12.4% on that base up to the Social Security wage limit plus 2.9% Medicare with no limit. The 0.9235 factor is 1 minus the 7.65% employer-equivalent share.
- 2026 Social Security wage base: $184,500 (SSA contribution and benefit base). The 12.4% portion stops once the 92.35% base reaches it, which is about $199,783 of net profit.
- Half-SE deduction is applied before the income tax estimate, matching the above-the-line adjustment on Schedule 1.
- The income tax line is a flat rate applied to profit after that deduction. It does not subtract the standard deduction or the 20% QBI deduction, so it overstates income tax for most sole proprietors. Enter an effective rate, not a marginal one, for a closer estimate.
- Not modelled: state and local tax, the 0.9% additional Medicare tax, other household income, credits, and S-corp treatment.
- Quarterly figure is the annual total divided by four. Real instalments may be uneven if your income is seasonal; the annualised income method on Form 2210 handles that case.
Reviewed September 2026.
Figures reviewed . Every worked example on this page is checked against the calculator above.
Self-Employment Tax Calculator: frequently asked questions
How much should I set aside for self-employment taxes?
SE tax alone is 14.1% of net profit, so 25 to 30% is a reasonable starting rule once income tax is included. On $60,000 of profit at a 22% rate this calculator estimates $20,745 for the year, or $5,186 a quarter.
What is the self-employment tax rate?
15.3%, made up of 12.4% Social Security and 2.9% Medicare. Because it applies to 92.35% of net profit rather than all of it, the effective rate is 14.13% of profit. Social Security stops at the $184,500 wage base for 2026; Medicare has no cap.
How do I calculate my self employment tax?
Multiply net profit by 0.9235, then by 15.3%. For $60,000 of profit that is $55,410 × 0.153 = $8,477.73. Above roughly $199,783 of profit the Social Security portion stops and only the 2.9% Medicare part continues.
Why is self-employment tax based on 92.35% of profit?
It is 100% minus 7.65%, the employer half of FICA. Employees do not pay income tax on their employer's share, so the adjustment puts the self-employed on equal footing.
Is half of self-employment tax deductible?
Yes. Half of your SE tax is an above-the-line deduction against income, available whether or not you itemise. On $8,477.73 of SE tax you deduct $4,238.87, worth roughly $933 at a 22% rate.
When are quarterly estimated taxes due?
15 April, 15 June, 15 September and 15 January, shifting to the next business day on weekends and holidays. The periods are uneven: Q2 covers two months and Q4 covers four.
What happens if I don't pay quarterly taxes?
The IRS charges an underpayment penalty calculated as interest on what was late. You avoid it under the safe harbour rule by paying 100% of last year's total tax, or 110% if your prior-year AGI exceeded $150,000, or 90% of the current year's.
Do I owe self-employment tax on a side hustle?
Yes, once your net self-employment earnings reach $400 for the year. That threshold is much lower than the income tax filing threshold, which is why small side income often triggers a filing requirement on its own.