Self-Employment Tax Calculator 2025
Estimate your self-employment tax as a freelancer, independent contractor, or sole proprietor. See your SE tax, federal income tax, and total take-home after all deductions.
Take-Home After Tax
$54,183.29
$4,515.27 per month
| Breakdown | Amount |
|---|---|
| Gross Income | $80,000.00 |
| Expenses | $10,000.00 |
| Net Profit | $70,000.00 |
| Self-Employment Tax | $9,890.69 |
| SE Deduction | $4,945.35 |
| Federal Income Tax | $5,926.02 |
| Total Tax | $15,816.71 |
| Take-Home | $54,183.29 |
| Effective Rate | 22.6% |
How Self-Employment Tax Works
When you work for yourself, you pay both the employee and employer shares of Social Security and Medicare taxes. W-2 employees split this with their employer (each paying 7.65%), but self-employed individuals pay the full 15.3% on 92.35% of their net earnings.
The good news: you can deduct half of your SE tax from your adjusted gross income, which reduces your federal income tax. You also deduct legitimate business expenses before calculating SE tax.
Example Calculations
Freelancer earning $60,000 with $5,000 in expenses
Net profit: $55,000. SE taxable income: $50,793 (92.35%). SE tax: $7,771. SE deduction: $3,886. Federal income tax on AGI of $51,114: approximately $4,232. Total tax: ~$12,003. Take-home: ~$42,997.
Independent contractor earning $120,000 with $15,000 in expenses
Net profit: $105,000. SE tax: approximately $14,840. Federal tax: approximately $12,894. Total tax: ~$27,734. Take-home: ~$77,266.
Frequently Asked Questions
What is the self-employment tax rate?
The SE tax rate is 15.3% — 12.4% for Social Security and 2.9% for Medicare. This covers both the employee and employer portions of FICA that W-2 workers split with their employer.
Can I deduct half of my SE tax?
Yes. You can deduct 50% of your self-employment tax from your adjusted gross income. This reduces your income tax but not the SE tax itself.
When do I pay self-employment tax?
If you expect to owe $1,000 or more in tax, you must make quarterly estimated payments (April 15, June 15, September 15, January 15). Failure to pay quarterly can result in penalties.
What income is subject to SE tax?
Net earnings from self-employment above $400 are subject to SE tax. This includes 1099 income, freelance work, gig economy earnings, and sole proprietorship profits.
How is SE tax different from income tax?
SE tax is separate from federal income tax. SE tax funds Social Security and Medicare. You pay both SE tax AND income tax on your self-employment earnings.
Does the Social Security wage base apply to SE tax?
Yes. The 12.4% Social Security portion of SE tax only applies to the first $176,100 of net self-employment earnings in 2025. The 2.9% Medicare portion has no cap.
Important Disclaimer
The figures provided by this calculator are estimates based on the information you enter and published rates at the time of writing. They do not constitute financial, tax, or legal advice, and we accept no liability for decisions made on the basis of these estimates. Your actual liability may differ depending on your individual circumstances, applicable reliefs, and any changes to rates or legislation. Always consult a qualified professional or check the latest IRS guidance at irs.gov before making financial decisions.
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