Self Employment Tax Calculator
Calculate your self-employment tax for Social Security and Medicare. Includes the deductible portion and estimated quarterly payment amounts.
Business Income Information
Self Employment Tax
Estimated Quarterly Payments
If you need to pay quarterly estimated taxes, each payment would be approximately:
How Self Employment Tax Works
What is Self Employment Tax?
Self-employment tax covers Social Security and Medicare taxes for people who work for themselves. It's the equivalent of FICA taxes that employees and employers pay.
- Social Security: 12.4% on first $168,600 of combined income (2024)
- Medicare: 2.9% on all self-employment income
- Additional Medicare: 0.9% on income over $200,000 (single) or $250,000 (married)
Self Employment Tax Deduction
You can deduct 50% of your self-employment tax from your taxable income. This deduction is taken on your Form 1040 and reduces your adjusted gross income (AGI).
Quarterly Estimated Taxes
If you expect to owe $1,000 or more in taxes, you should make quarterly estimated tax payments. Due dates are typically:
- Q1: April 15
- Q2: June 15
- Q3: September 15
- Q4: January 15 (of following year)
Frequently Asked Questions
You must pay self-employment tax if you have net earnings of $400 or more from self-employment. This includes freelancers, independent contractors, sole proprietors, and partners in partnerships.
Yes! Business expenses are deducted from your gross income to arrive at net business income. Only your net income is subject to self-employment tax. Common deductions include home office, equipment, supplies, mileage, and professional services.
If you have W-2 income, your employer already pays half of FICA taxes. The Social Security wage base limit ($168,600 for 2024) applies to combined W-2 and self-employment income. If your W-2 income exceeds this limit, you won't owe Social Security tax on self-employment income.