Self-Employment Tax Calculator
Calculate self-employment (SE) tax, the deductible half, and net income for freelancers, 1099 contractors, and small business owners.
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How to use this calculator
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Enter your net self-employment profit — this is revenue minus business expenses.
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SE tax is 15.3% (12.4% SS + 2.9% Medicare) on 92.35% of your net profit.
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You can deduct half of your SE tax from your gross income — reducing your federal income tax.
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Estimated quarterly taxes are due April 15, June 15, September 15, and January 15.
Frequently asked questions
Why is self-employment tax 15.3% while employees only pay 7.65%?
Employees split FICA with their employer — each pays 7.65%. Self-employed people pay both the employee and employer share (15.3%) because they are their own employer. However, the IRS allows deducting the employer half (7.65%) from your income, which partially offsets the extra burden.
How do I pay SE tax?
SE tax is reported on Schedule SE attached to Form 1040. Since no employer withholds taxes, self-employed individuals must make quarterly estimated tax payments (Form 1040-ES) to avoid underpayment penalties. Payments are due April 15, June 15, September 15, and January 15.
What business deductions reduce my SE tax?
SE tax is based on net self-employment profit (revenue minus business expenses). Legitimate deductions that reduce profit include home office, vehicle mileage (67 cents/mile in 2024), equipment and software, professional fees, health insurance premiums, and retirement plan contributions (SEP-IRA up to 25% of net earnings). These reduce both SE tax and income tax.
What is a SEP-IRA and how does it help?
A Simplified Employee Pension (SEP-IRA) allows self-employed people to contribute up to 25% of net self-employment income (or $69,000 in 2024, whichever is lower). These contributions are deductible, reducing your taxable income and indirectly reducing SE tax in future years. Opening a SEP-IRA is one of the most powerful tax strategies for the self-employed.
Self-Employment Tax Calculator 2024 — 1099 and freelancer tax
How to use the self-employment tax
Use this self-employment tax to lf-employment (se) tax, the deductible half, and net income for freelancers, 1099 contractors, and small business owners. Enter your values above and get your result in seconds. The tool is free, works on all devices, and keeps your data private — nothing is stored or shared.
How the self-employment tax works
The self-employment tax calculator uses standard formulas used in financial planning, budgeting, and investment decisions. Enter your inputs, and the tool calculates the result instantly in your browser. No server-side processing means your data stays on your device. Results update in real time as you change inputs.
SE tax vs W-2 tax — the real cost of freelancing
A W-2 employee earning $80,000 pays 7.65% FICA ($6,120). A freelancer with $80,000 in profit pays 15.3% SE tax on 92.35% of it ($11,301) — nearly double. However, the freelancer gets to deduct half the SE tax AND all business expenses, which can significantly reduce the gap. The net difference depends heavily on deductible business expenses.
Quarterly estimated tax deadlines 2024
Q1 (Jan–Mar): due April 15 | Q2 (Apr–May): due June 17 | Q3 (Jun–Aug): due September 16 | Q4 (Sep–Dec): due January 15, 2025. Missing these deadlines results in a small underpayment penalty (currently around 8% annualized). The safe harbor: pay at least 100% of last year's tax (110% if prior year AGI > $150K) to avoid penalties regardless of actual income.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →