Free Self-Employment Tax Calculator - Estimate Your Taxes
Calculate your self-employment tax and estimated income tax obligations
Formula & Methodology
The IRS requires self-employed individuals to pay a 15.3% tax (12.4% for Social Security and 2.9% for Medicare) on 92.35% of their net earnings. You can then deduct half of this tax when calculating your Adjusted Gross Income for standard income taxes.
- Net Self-Employment Income = Self-Employment Income - Business Expenses
- SE Taxable Income = Net SE Income × 0.9235
- Self-Employment Tax = SE Taxable Income × 0.153
- SE Deduction = Self-Employment Tax ÷ 2
- Adjusted Gross Income = Net SE Income - SE Deduction
- Estimated Income Tax = AGI × (Tax Rate ÷ 100)
- Total Estimated Tax = Self-Employment Tax + Estimated Income Tax
Worked Example
Using the Self-Employment Tax Calculator: apply the formula above to your input values. For instance, Net Self-Employment Income = Self-Employment Income - Business Expenses, then SE Taxable Income = Net SE Income × 0.9235. The tool performs each step instantly and shows the result.
Frequently Asked Questions
What is self-employment tax?
It is the 15.3% tax covering Social Security and Medicare that the self-employed pay on their net earnings.
Why is it higher than employee payroll tax?
Employees split payroll taxes with an employer; the self-employed pay both halves themselves.
Can I deduct part of it?
Yes. You can generally deduct half of your self-employment tax when figuring your income tax.