Self-Employment Tax Calculator

The SECA tax is 15.3% - 12.4% Social Security (on first $176,100 of net earnings in 2025, $184,500 in 2026) plus 2.9% Medicare (no cap). High earners owe an additional 0.9% Medicare surcharge above $200K single.

Yes - you deduct the employer-equivalent half (7.65%) above the line on your Form 1040, reducing your AGI. This effectively recognizes that employees have the same tax paid by their employer.

For 2025: April 15, June 16, September 15, and January 15, 2026. Underpayment can trigger penalties - pay at least 90% of current tax or 100% of last year (110% if AGI >$150K) to avoid them.

Forgetting that SE tax is separate from income tax. A freelancer in the 22% bracket actually faces 22% + 15.3% = 37.3% combined federal tax. Always set aside 30-35% of net income for taxes.

Self-employment tax is 15.3% of net self-employment earnings: 12.4% for Social Security (on the first $184,500 of net SE income in 2026) plus 2.9% for Medicare with no income cap. Earners above $200,000 single ($250,000 married) also owe the 0.9% Additional Medicare Tax. You can deduct half of the SE tax (the employer-equivalent share) directly on your federal return, which reduces your AGI but not your SE tax bill itself.

Yes. You can deduct exactly 50% of the SE tax you owe as an above-the-line adjustment on Schedule 1, reducing your adjusted gross income. This mirrors the fact that W-2 employees never see the employer half of payroll taxes in their income. Self-employed people can also deduct 100% of health insurance premiums paid for themselves and their family as another above-the-line deduction, further narrowing the tax gap versus traditional employment.

If you expect to owe at least $1,000 in federal tax for the year, you must pay quarterly estimated taxes using Form 1040-ES. The 2026 due dates are April 15, June 16, September 15, and January 15, 2027. To avoid underpayment penalties, pay either 90% of your current-year tax or 100% of last year's total tax liability (110% if your prior-year AGI exceeded $150,000). Most self-employed people set aside 25-30% of each payment received throughout the year.

Self-employed filers can deduct ordinary and necessary business expenses directly against self-employment income. Common deductions include the home office (actual expenses or $5 per square foot up to 300 sq ft), vehicle mileage at the 2024 standard rate of 67 cents per mile, equipment and software, professional subscriptions, and business insurance. Health insurance premiums are fully deductible above the line. Retirement contributions to a SEP-IRA can reach up to 25% of net self-employment income (max $69,000 for 2024), one of the most powerful tax shelters available to freelancers.