Self-Employment Tax Calculator (2025)
15.3% on your freelance or 1099 net profit — plus the estimated federal income tax on top of it.
Schedule C net profit — business revenue minus business expenses, not gross revenue.
Self-Employment Tax Calculator
If you freelance, drive for a rideshare app, run a small business, or get paid on a 1099 instead of a W-2, nobody’s withholding Social Security and Medicare for you — you owe it directly, and at double the rate a regular employee sees, because you’re covering both the employee and employer halves yourself. This calculator estimates that self-employment tax for 2025, plus the federal income tax on top, so you can see your full estimated tax picture in one place — useful for setting aside money for quarterly estimated payments.
How Self-Employment Tax Is Actually Calculated
- Take your net self-employment profit (Schedule C) and multiply by 92.35% — this is the SE-tax base, a standard adjustment that roughly mirrors how an employee’s FICA wages exclude the employer’s matching share.
- Social Security (12.4%) applies to that base, but only up to the $176,100 annual wage base for 2025 — and critically, that cap is shared with any W-2 wages you also earned this year, not a separate limit just for self-employment income.
- Medicare (2.9%) applies to the full SE-tax base with no cap at all.
- Additional Medicare Tax (0.9%) kicks in on combined wages + self-employment income above $200,000 (single/HOH), $250,000 (married filing jointly), or $125,000 (married filing separately) — and importantly, this extra 0.9% does NOT get the half-deduction described below.
- Half of the regular 15.3% portion (not the Additional Medicare Tax) becomes an above-the-line deduction that reduces your income tax — a small but real offset most first-time freelancers miss.
Why a W-2 Job Changes the Math
If you have a regular job alongside freelance work, your employer already withheld Social Security on your W-2 wages up to the shared $176,100 cap. Any self-employment income you also earned only owes the 12.4% Social Security portion on whatever room is left under that cap — if your W-2 wages alone already hit $176,100, your entire self-employment income skips the Social Security portion and owes only the uncapped 2.9% Medicare portion (plus 0.9% Additional Medicare Tax if you’re above the relevant threshold). This calculator accounts for that combined cap automatically.
Example: $60,000 Net Profit, No W-2 Income, Single
SE-tax base: $60,000 × 92.35% = $55,410. Social Security: $55,410 × 12.4% = $6,870.84. Medicare: $55,410 × 2.9% = $1,606.89. No Additional Medicare Tax (well under the $200,000 threshold). Total self-employment tax: $8,477.73. Half of that ($4,238.87, excluding any Additional Medicare Tax since there isn’t any here) becomes an above-the-line deduction, reducing federal taxable income to $60,000 − $15,750 (standard deduction) − $4,238.87 = $40,011.13, for an estimated federal income tax of $4,562.84.
Frequently Asked Questions
Why is self-employment tax 15.3%?
As an employee, you and your employer each pay half of Social Security (6.2%) and Medicare (1.45%) — 7.65% each, 15.3% combined. As a self-employed person, you’re both the employer and the employee, so you pay the full 15.3% yourself. Half of it becomes an above-the-line income tax deduction to partially offset this.
Do I pay self-employment tax on my full net profit?
Not quite — the IRS first multiplies your net self-employment profit by 92.35% before applying the 15.3% rate, an adjustment that roughly offsets the fact that an employee’s FICA wages don’t include the employer-paid half of FICA either.
If I also have a W-2 job, does that affect my self-employment tax?
Yes. The 12.4% Social Security portion has a combined annual wage base ($176,100 for 2025) across W-2 wages AND self-employment income together — if your W-2 wages already reach that cap, none of your self-employment income owes the Social Security portion, only the uncapped 2.9% Medicare portion. This calculator accounts for that.
Does the Foreign Earned Income Exclusion reduce self-employment tax?
No — self-employment tax applies to net self-employment profit regardless of any income tax exclusions. If you’re a self-employed American living abroad, see the dedicated Expat Tax Calculator, which models this interaction plus totalization agreement exemptions.
This calculator provides a simplified estimate of 2025 self-employment tax and federal income tax. It does not model state income tax, the Qualified Business Income deduction, quarterly estimated payment penalties, or itemized deductions. Check the relevant government tax authority or a qualified tax professional for advice about your specific situation.
