SE Tax Calculator

Enter your net self-employment income — that is gross 1099 revenue minus deductible business expenses. Then choose your filing status. If you also have W-2 wages (a day job), enter the total W-2 wages so the calculator can adjust the Social Security cap and apply the correct income tax brackets.

Optional: add any deductions beyond the standard deduction. Common examples: SEP-IRA or solo 401(k) contributions, HSA contributions, half of self-employment tax (we calculate this automatically), and other above-the-line deductions.

The calculator uses 2025 federal rates: 15.3% combined Social Security (12.4%) and Medicare (2.9%) on net SE earnings × 92.35%, with the Social Security portion capped at the 2025 wage base of $176,100. Additional Medicare tax of 0.9% applies on combined wages + SE income above $200,000 (single) or $250,000 (married filing jointly).

Federal income tax uses the 2025 tax brackets. State income tax is not included — add it separately for your state.

The total estimated tax includes both self-employment tax and federal income tax. Divide by four for your quarterly estimated payment. The IRS expects pay-as-you-go via quarterly payments (April 15, June 15, September 15, and January 15) — missing or underpaying these triggers underpayment penalties, even if you eventually pay the full amount at filing.

Self-employment tax is the freelancer equivalent of the FICA taxes that W-2 employers split with their workers. As a self-employed person, you pay both halves — 12.4% Social Security and 2.9% Medicare — for a combined 15.3%. The good news: you can deduct 50% of your SE tax from your taxable income (this calculator factors that in automatically).

A common surprise: even at a relatively modest income, the combined SE tax + federal income tax effective rate is often 25–32%. Add state income tax (anywhere from 0% in Texas, Florida, Washington to 13%+ in California) and your real total tax rate can exceed 35–40% for high earners in high-tax states.

Tax-reduction strategies to consider: SEP-IRA or solo 401(k) contributions (up to ~25% of compensation, capped near $70K in 2025), HSA contributions if you have a high-deductible health plan, and aggressive but legitimate business expense deductions (home office, mileage, equipment, software, professional development).

For higher-income freelancers (typically $80K+ net), it can be worth electing S-Corp status. You pay yourself a "reasonable salary" subject to SE/FICA, and take the rest as distributions free of SE tax. This requires running payroll and adds compliance overhead — consult a CPA before electing.

This calculator estimates federal tax only. State income tax can add anywhere from 0% (Texas, Florida, Washington, Nevada, South Dakota, Wyoming, Tennessee, New Hampshire) to 13% (California top marginal). Build that into your savings rate.