Self-Employed Tax Calculator
Calculate your self-employment taxes including Social Security and Medicare taxes. This calculator helps independent contractors, freelancers, and small business owners estimate their tax obligations.
Self-Employment Tax Results
| Self-Employment Tax | $0.00 |
|---|---|
| Social Security Tax | $0.00 |
| Medicare Tax | $0.00 |
| Additional Medicare Tax (if applicable) | $0.00 |
| Income Tax | $0.00 |
| Total Estimated Tax | $0.00 |
| Estimated Quarterly Payment | $0.00 |
About Self-Employment Taxes
Self-employment tax is how independent contractors, freelancers, and business owners pay into Social Security and Medicare. Unlike traditional employees who split these costs with their employers, self-employed individuals must pay the full amount themselves.
How Self-Employment Tax is Calculated
The self-employment tax rate is 15.3% of your net earnings (12.4% for Social Security and 2.9% for Medicare). However, you only pay Social Security tax on the first $147,000 of your combined wages and self-employment income (for 2023). There's no income limit for Medicare tax.
Step-by-Step Calculation:
- Calculate your net profit from self-employment (business income minus business expenses)
- Multiply your net profit by 92.35% to get your taxable self-employment income
- Calculate 15.3% of that amount to get your self-employment tax
- Add any additional Medicare tax if your income exceeds certain thresholds
Quarterly Estimated Tax Payments
Since taxes aren't withheld from your self-employment income, you generally need to make estimated tax payments quarterly if you expect to owe $1,000 or more in taxes for the year. The calculator above estimates what your quarterly payments should be.
Deductions and Credits
You can deduct half of your self-employment tax from your net income when calculating your income tax. You may also qualify for other deductions and credits that can reduce your overall tax burden.