Self-Employment Tax Calculator
Calculate self-employment taxes (Social Security and Medicare) and quarterly estimated tax payments for freelancers, contractors, and business owners.
What is Self-Employment Tax?
Self-employment (SE) tax is the Social Security and Medicare tax that self-employed people, freelancers, and business owners must pay. Unlike employees (where tax is split with the employer), self-employed people pay both the employee and employer portions, totaling 15.3%.
This calculator helps you estimate your SE tax and quarterly estimated tax payments, which are required if you expect to owe $1,000 or more.
Calculate Self-Employment Tax
Total SE Tax
$7,064.78
Annual self-employment tax
Quarterly Payment
$1,766.19
Due: Apr 15, Jun 15, Sep 15, Jan 15
Monthly Payment
$588.73
If paying monthly
Effective SE Tax Rate
14.13%
Percentage of net income
SE Tax Breakdown
How Self-Employment Tax is Calculated
Step-by-Step Formula
1. SE Income = Net Income × 92.35%
2. SS Tax = SE Income × 12.4% (capped at $168,600 wage base)
3. Medicare Tax = SE Income × 2.9% (no cap)
4. Additional Medicare = Max(0, SE Income - $200k) × 0.9%
5. Total SE Tax = SS Tax + Medicare Tax + Additional Medicare
Example
Self-employed business owner with $60,000 net income
Net Income: $60,000
SE Income: $60,000 × 0.9235 = $55,410
Social Security Tax: $55,410 × 0.124 = $6,871
Medicare Tax: $55,410 × 0.029 = $1,607
Total SE Tax: $8,478
Quarterly Payment: $8,478 ÷ 4 = $2,119.50
SE Deduction: $8,478 ÷ 2 = $4,239 (reduces taxable income)
Understanding SE Tax Components
📊 Social Security Tax (12.4%)
Capped at $168,600 of SE income (for 2024). Once you reach this cap, no additional Social Security tax is owed. This tax funds Social Security retirement, disability, and survivor benefits.
Example: $60,000 SE income × 12.4% = $7,440. If you had $200,000 SE income, only the first $168,600 is taxed: $168,600 × 12.4% = $20,906 (not the full $24,800).
🏥 Medicare Tax (2.9%)
No wage cap—ALL SE income is subject to the 2.9% Medicare tax. This funds Medicare health insurance for seniors and disabled individuals.
Example: $60,000 SE income × 2.9% = $1,740. Whether you earn $50,000 or $500,000, the full amount is taxed at 2.9%.
💰 Additional Medicare Tax (0.9%)
Applies to SE income over $200,000. This is part of the Affordable Care Act and goes toward expanding Medicare coverage and reducing the deficit.
Example: If you have $250,000 SE income: ($250,000 - $200,000) × 0.9% = $450 additional tax.
📉 The 92.35% Factor
Self-employed people can deduct 50% of their SE tax from their income. This is why SE income is calculated as 92.35% of net income, not 100%. This gives a slight tax break and matches the employee/employer split for W-2 workers.
Quarterly Estimated Tax Payments
Payment Deadlines
Q1 (Jan–Mar)
Due: April 15
Q2 (Apr–Jun)
Due: June 15
Q3 (Jul–Sep)
Due: September 15
Q4 (Oct–Dec)
Due: January 15 (next year)
Do I need to pay quarterly? You must pay if you expect to owe $1,000 or more in estimated taxes. If you miss a payment, you may face penalties and interest, so setting up a payment schedule is important.
How to pay: Use IRS Direct Pay, Electronic Federal Tax Payment System (EFTPS), credit/debit card, or mail Form 1040-ES with a check. Keep payment records for your tax file.
Self-Employment Tax by Income Level
| Net Income | Total SE Tax | Quarterly Payment | Effective Rate |
|---|---|---|---|
| $25,000 | $3,532 | $883 | 14.1% |
| $40,000 | $5,651 | $1,413 | 14.1% |
| $60,000 | $8,478 | $2,120 | 14.1% |
| $100,000 | $14,130 | $3,533 | 14.1% |
| $200,000 | $28,260 | $7,065 | 14.1% |
References & Resources
- IRS Schedule SE: Self-Employment Tax
- IRS Publication 15-B: Employer's Tax Guide to Fringe Benefits
- IRS Form 1040-ES: Estimated Tax Payments
- Social Security Administration: Self-Employment Tax Information
- SCORE: Free Small Business Mentoring