Self-Employment Tax

Freelancer's burden. Estimate your combined Social Security and Medicare tax liability as an independent contractor or small business owner.

Total income minus business expenses.
Total SE Tax Owed
$12,010

Estimated tax before income tax brackets.

Social Security
$9,734
Medicare
$2,276

The 15.3% Rule

I genuinely believe that every freelancer should be prepared for the SE tax. When you work for yourself, you are both the employer and the employee. This means you must pay both shares of Social Security (12.4%) and Medicare (2.9%), for a total of **15.3%**.

The 92.35% Factor: The IRS doesn't tax your entire net profit for self-employment tax. Instead, you only pay it on 92.35% of your net earnings. This calculation effectively treats the employer's half of the tax as a deduction.

What counts as "Net Profit"?

  • Gross Income: Every dollar you earned from clients.
  • MINUS Expenses: Web hosting, home office gear, marketing, software subscriptions, and travel.
  • EQUALS Net Profit: The number you enter into this calculator.

Note: This tool calculates the SE tax only. You will still owe federal and state **Income Tax** on this profit, though you can deduct half of your SE tax from your taxable income.