About Self-Employment Tax Calculator
This self-employment tax calculator helps US freelancers and independent contractors estimate their Schedule SE tax obligation and figure out how much to set aside for quarterly estimated payments. Self-employed individuals pay both the employee and employer portions of Social Security and Medicare taxes - a combined rate of 15.3% on net earnings - on top of regular income tax. Many people discover this for the first time when they file their taxes and face a larger-than-expected bill.
Enter your expected annual net self-employment income (gross revenue minus deductible business expenses), choose your filing status, and the calculator shows your SE tax, the income tax deduction you get for half of it (which lowers your taxable income), your estimated federal income tax, and your suggested quarterly estimated tax payment amount.
The SE tax rate breaks down as 12.4% for Social Security (applied up to the annual wage base, which is $168,600 for 2024) and 2.9% for Medicare on all net earnings. Above $200,000 in income (single filers) or $250,000 (married filing jointly), an additional 0.9% Additional Medicare Tax applies.
The calculator is not a replacement for tax software or a CPA, but it is the fastest way to get a ballpark estimate when you start a new freelance engagement or your income changes significantly mid-year. Use it at the start of the year to set your quarterly payment amounts, and recalibrate whenever a major project changes your expected annual income.
Quarterly estimated tax payments are due April 15, June 15, September 15, and January 15. Underpaying by more than $1,000 may result in an underpayment penalty, so it is better to slightly overpay and receive a refund than to be caught short at tax time.