Self-Employment Tax Calculator

If you are a freelancer, an independent contractor, or a small-business owner, you need to pay self-employment tax. SE tax consists of Social Security and Medicare taxes for people who work for themselves. You can easily use our tool to estimate what you owe in just a few minutes.

What is Self-Employment Tax?

The tax rate applicable to self-employment is 15.3%, applicable to net earnings, also called profits by many. You may have to pay self-employment tax during the year.

Being self-employed allows you to claim a tax deduction for several qualified expenses. It includes business income, retirement account contributions, and expenses related to a business. One key difference between the self-employment tax and the payroll taxes people with employers pay is:

• Generally, the employees and their employers divide the bill on Social Security tax and Medicare tax. It means you pay 7.65% and your employer will also pay 7.65%.
• On the contrary, self-employed people pay both halves.

Who Needs to Pay Self-Employment Tax?

Usually, you need to pay self-employment tax if you acquired $400 or more in net earnings from self-employment. This doesn't include anything you made while working as a church employee. If you got a 1099 form from an entity you have worked for, you may qualify as self-employed in the eyes of the IRS.

Additionally, if you have made $108.28 or more in income received from church employment, you may have to pay self-employment tax. The tax rules apply to all, irrespective of your age and whether you are receiving Social Security or are on Medicare.

Self-Employment Tax Rate

The tax rate for self-employment is a combination of Social Security tax and Medicare tax, which is 15.3%. Social Security is 12.4% (also called the OASDI tax), and the Medicare tax is 2.9% on net earnings; combined, it is 15.3%.

Remember that the self-employment tax is not similar to income tax. In 2024, the threshold was $168,600. However, in 2025, only the first $176,100 of earnings were subject to the social security portion. Also, if your net earnings from self-employment surpass $200,000, and if you are a single filer, or $250,000 if you are filing jointly. Then, an additional medicare tax of 0.9% may also be applicable.

How to Calculate Self-Employment Tax Using Savetaxs SE Tax Calculator?

Using the Savetaxs Self-employment tax calculator is convenient and simple. You don't need any technical knowledge or professional skills to use our tool. Simply follow the steps mentioned below to estimate your potential self-employment tax for the relevant calendar year:

1. Choose the Tax Year: At the top of our calculator, firstly select the tax year for which you want to compute your self-employment tax. You will find several options there: 2023, 2024, 2025.

2. Fill in Your Self-Employment Income: Now, in the "self-employment income" field, fill in the total income you earned from self-employment for the year you chose. Ensure to enter the amount in dollars.

3. Select Your Filing Status: Look for the "Filing Status" option in the dropdown menu and select your filing status. It can be any one of these:

• Single or Head of Household
• Married filing jointly
• Married filing separately

4. Compute Your Tax: After that, click on the "Calculate Tax" button to generate the tax estimate.

5. See Your Estimated Self-Employment Tax: Once the calculation is done, the screen will display the results:

• Social Security Tax
• Medicare Tax
• Total Self-Employment Tax

How Do I Pay Self-Employment Tax?

Consider these steps to pay your self-employment tax:

• Usually, to calculate your net earnings from self-employment, you utilize IRS Schedule C. Also, you use IRS Schedule SE to calculate your self-employment tax liability.
• You are required to provide your Social Security Number. Also, your individual taxpayer identification number (TIN) is required when paying taxes.
• Taxation in the United States is a pay-as-you-go deal. It means if you wait until the annual filing due date to pay your self-employment tax, you may attract late-payment penalties. You must make estimated tax payments every quarter during the year if you expect the following:
  • You will owe a minimum $1,000 in federal income tax this year, even after accounting for your withholding and refundable credits (like the earned income tax credit), and
  • Your refundable credits and withholding will cover not more than 90% of your tax liability for this year. Or, 100% of your liability last year, whichever is the lesser. (The limit is 110% of the tax owed last year if your adjusted gross income exceeded $150,000 for married couples filing jointly or $75,000 for singles).

Tax Deductions for Self-Employment

You have the option to deduct half of your self-employment tax from your income taxes. So, for instance, if you owe $2000 in self-employment tax for the year, as per Schedule SE. Then, you are required to pay when the money is due within the year. However, a $1000 would be deductible on your 1040 at the time of taxation.

Apart from this, self-employment tax can offer some deductions too. Like, you can claim the qualified business income deduction. It provides an income tax deduction for a specific portion of your self-employment net income. You get several other deductions also for your home office, health insurance, and much more.

Make Calculations Straightforward

Stop complicating everything and save your time and efforts by using Savetaxs Self-Employment tax calculator. Our tool is easy and hassle-free to use. You can use our tool anytime, and it will help you estimate your tax liability quickly and accurately. This way, you can manage your finances more efficiently without taking any stress.