Self-Employment Tax Calculator
Estimate your SE tax (Social Security + Medicare) and federal income tax as a freelancer or sole proprietor — including the 50% SE deduction.
Self-Employment Tax Breakdown (2025)
| Tax Component | Rate | Income Cap |
|---|---|---|
| Social Security (employee + employer) | 12.4% | $176,100 |
| Medicare (employee + employer) | 2.9% | None |
| Additional Medicare Tax | 0.9% | $200K+ (single) |
| Total SE Tax (base) | 15.3% | Up to SS wage base |
| SE Tax Deduction (50%) | −7.65% | Reduces AGI |
SE tax is calculated on 92.35% of net SE income. Social Security wage base is $176,100 for 2025.
Frequently Asked Questions
What is self-employment tax?
Self-employment (SE) tax is the Social Security and Medicare taxes that self-employed individuals must pay. Employees split these taxes 50/50 with their employer (7.65% each). The self-employed pay both halves — 15.3% total. Breakdown: 12.4% Social Security (on net SE income up to $176,100 in 2025) + 2.9% Medicare (no income cap) + 0.9% Additional Medicare Tax on income above $200K (single) or $250K (married). SE tax is calculated on 92.35% of net self-employment income (you deduct the employer-equivalent half before calculating).
Can I deduct self-employment tax?
Yes — you can deduct 50% of your SE tax as an above-the-line deduction on Schedule 1 of your Form 1040. This deduction reduces your adjusted gross income (AGI) and therefore your federal income tax, but it does NOT reduce the SE tax itself. Example: $100,000 net SE income → $14,130 SE tax → $7,065 deductible → reduces taxable income for federal income tax purposes. This deduction is automatic if you file Schedule SE.
What business expenses can I deduct to reduce SE tax?
All ordinary and necessary business expenses reduce your net self-employment income, which directly lowers your SE tax. Common deductions: home office (dedicated space method: $/sqft × business sq ft), business vehicle mileage (67 cents/mile in 2025), health insurance premiums (100% deductible as SE health insurance deduction), retirement contributions (SEP-IRA up to 25% of net SE income, max $69,000; Solo 401k up to $69,000 + $7,500 catch-up over 50), professional services, equipment, software, and training.
Do I need to make quarterly estimated tax payments?
Yes, if you expect to owe $1,000 or more in federal taxes for the year, you must make quarterly estimated tax payments. Due dates: April 15 (Q1), June 16 (Q2), September 15 (Q3), January 15 of the following year (Q4). Underpayment penalties apply if you do not pay enough — typically 0.5% per month. A safe harbor rule: pay either 100% of last year's tax liability or 90% of this year's tax, whichever is smaller (110% of prior year if AGI exceeded $150K).
What is the QBI deduction for self-employed?
The Qualified Business Income (QBI) deduction (Section 199A) allows eligible self-employed individuals to deduct up to 20% of qualified business income. Most freelancers and sole proprietors qualify for the full 20% deduction if their taxable income is below $197,300 (single) or $394,600 (married) in 2025. Above those thresholds, the deduction phases out for specified service trades (consultants, lawyers, doctors, financial advisors, athletes, performers). The deduction reduces income tax but not SE tax.