What is the self-employment tax rate?

Self-employment tax is 15.3% — 12.4% for Social Security and 2.9% for Medicare. It is applied to 92.35% of your net self-employment earnings, since that deductible portion mirrors the employer share employees do not pay.

Can I deduct part of my self-employment tax?

Yes. You can deduct half of your self-employment tax from your taxable income for income-tax purposes, which the calculator applies before estimating your federal income tax.

Why do I need to pay quarterly estimated taxes?

Freelancers have no employer withholding, so the IRS expects estimated payments four times a year — around April 15, June 15, September 15 and January 15 — to avoid underpayment penalties. The calculator splits your total tax into those four payments.

How much should I set aside for taxes as a freelancer?

The tool computes a set-aside percentage from your total tax over your total income so you know roughly what share of every payment to reserve. It typically lands in the 20–35% range depending on income and filing status.

Self Employment Tax Calculator — What Freelancers Actually Owe

Calculate how much self-employment tax you owe as a freelancer or business owner

Quick Answer

Self-employed workers pay 15.3% self-employment tax on net earnings up to $168,600 in 2025 — this covers Social Security and Medicare that employers normally split with employees. On $80,000 of freelance income the self-employment tax alone is $11,304 before any income tax. You can deduct half of SE tax from your income.

Self-employment tax is paid by freelancers, independent contractors and business owners in place of the payroll taxes shared between employees and employers. It consists of 12.4% for Social Security and 2.9% for Medicare. This calculator shows your total SE tax liability and estimated quarterly payment amounts to avoid IRS underpayment penalties.