Free Tool
Self-Employment Tax Calculator
If you freelance, drive, contract, or run a sole proprietorship, you owe self-employment tax on top of income tax. Estimate your 2025 SE tax — the Social Security and Medicare piece — and the deductible half you get back. It runs privately in your browser; nothing is saved or sent.
How it works: self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of your net profit. The Social Security part stops after $176,100 of earnings in 2025; Medicare has no cap. Enter your numbers below.
Estimated self-employment tax
$0
This is an estimate only of self-employment tax — it does not include your regular income tax, state tax, or credits. It uses 2025 figures ($176,100 Social Security wage base). Your exact tax depends on your full return. Confirm before relying on this.
Owe Self-Employment Tax You Can't Pay?
Self-employment tax catches a lot of 1099 and gig workers off guard — and unpaid SE tax turns into IRS debt fast. If you're already behind, we can set up an affordable payment plan, pursue penalty relief, or find the right resolution. Free, honest case review.
How self-employment tax works
When you work for an employer, you and the employer split Social Security and Medicare taxes — 7.65% each. When you're self-employed, you pay both halves yourself: that's the 15.3% self-employment tax (12.4% Social Security + 2.9% Medicare), reported on Schedule SE. You pay it on 92.35% of your net profit (the IRS lets you exclude the employer-equivalent portion first).
Two things soften it. First, the 12.4% Social Security portion only applies up to a cap — $176,100 of combined earnings in 2025 — so any W-2 wages you earned use up part of that cap. The 2.9% Medicare portion has no cap, and very high earners add another 0.9%. Second, you get to deduct half of the self-employment tax on your return, which lowers your income tax.
Because there's no employer withholding your taxes, the IRS expects you to pay as you go through quarterly estimated payments. Skip them and you face an underpayment penalty on top of the tax — one of the most common ways self-employed people fall into IRS debt. Setting money aside (a good rule of thumb is 25–30% of profit for federal tax combined) keeps you out of trouble.
Common questions
What is the self-employment tax rate for 2025?
Self-employment tax is 15.3% — 12.4% for Social Security plus 2.9% for Medicare. You pay it on 92.35% of your net self-employment profit. The 12.4% Social Security portion only applies to the first $176,100 of combined wages and self-employment earnings in 2025; the 2.9% Medicare portion has no cap.
Can I deduct half of my self-employment tax?
Yes. You can deduct one-half of your self-employment tax as an above-the-line deduction on your federal return. It lowers your income tax, though not the self-employment tax itself. This calculator shows that deductible half.
Do I owe self-employment tax on 1099 income?
Generally yes. If your net earnings from self-employment (1099 contract work, gig work, freelancing, or a sole proprietorship) are $400 or more for the year, you owe self-employment tax and must file Schedule SE. This is on top of any regular income tax.
Clarity Tax Relief is not affiliated with the IRS or any government agency. This calculator is general information, not individualized tax or legal advice; your exact tax depends on your full return, and no outcome is guaranteed.
More tools: IRS Payment Plan Calculator · Penalty & Interest Calculator · Offer in Compromise Calculator · IRS Help Center. Reviewed by Melissa Ly, Chief Tax Officer.