Self-EmploymentTax Calculator
Total money you earned before any deductions
$
Choose your tax filing status
SE Tax
$0
You keep
$0
Gross income$75,000
× 92.35% (SE deduction)$69,263
Social Security (12.4%)$0
Medicare (2.9%)$0
Deductible half of SE tax-$0
Effective SE tax rate14.13%
How self-employment tax works
The math behind the 15.3% SE tax
1
The 92.35% rule: Your gross income is reduced by 7.65% before SE tax is calculated. This mirrors the employer FICA deduction W-2 employees get.
2
Social Security: 12.4% on the first $184,500 of net SE earnings (2026).
3
Medicare: 2.9% on ALL net SE earnings (no cap). Additional 0.9% over $200K/$250K.
4
Deduction: You can deduct half of SE tax from your gross income before calculating income tax.
Frequently asked questions
What is self-employment tax?
Self-employment (SE) tax is how self-employed people pay Social Security and Medicare taxes. As a W-2 employee, your employer pays half. As a freelancer, you pay both halves — 15.3% total on 92.35% of your net earnings.
How much should I set aside for taxes as a freelancer?
Most freelancers should set aside 25-30% of gross income for federal taxes (SE tax + income tax). If you live in a high-tax state like California or New York, set aside 35-40%. Open a separate savings account and transfer the percentage every time a payment hits your account.
When are quarterly taxes due in 2026?
2026 due dates: Q1 (Jan-Mar) → April 15, Q2 (Apr-May) → June 15, Q3 (Jun-Aug) → September 15, Q4 (Sep-Dec) → January 15, 2027. If you expect to owe $1,000+, you must pay quarterly to avoid penalties.
What is the 92.35% rule?
The IRS allows self-employed individuals to reduce net SE earnings by 7.65% (multiply by 0.9235) before calculating SE tax. This equals the employer FICA deduction that W-2 employees receive automatically. It reduces your SE tax by about 7.65%.
Do I owe self-employment tax if my income is under $400?
No. The IRS exempts net self-employment earnings under $400 from SE tax. However, you may still owe federal income tax on that income. Note: this threshold applies to net earnings after the 92.35% multiplier, so roughly $433 of gross profit still falls under the limit.
Can I deduct half of my self-employment tax?
Yes. The IRS allows you to deduct one-half of your SE tax above-the-line on Schedule 1, line 15. This reduces your adjusted gross income (AGI), not your SE tax itself. It approximates the employer-side payroll tax that W-2 employees don't pay out-of-pocket.
What is the difference between self-employment tax and federal income tax?
SE tax (15.3%) funds Social Security and Medicare — it's a flat payroll tax. Federal income tax is progressive (10%-37%) based on your total taxable income. You pay both on self-employment income. This calculator shows only the SE tax portion.
Do I owe SE tax if I have a regular job too?
Yes. Your W-2 job covers Social Security and Medicare on your salary. Your freelance income owes SE tax separately. However, your salary counts toward the $184,500 Social Security ceiling — if your salary is already near or above it, the Social Security portion of your SE tax shrinks or disappears.
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