Self-Employment Tax Calculator
Calculate self-employment tax, quarterly estimated payments and deductions for freelancers.
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Frequently Asked Questions
What is self-employment tax?
Self-employment tax (SE tax) covers Social Security (12.4%) and Medicare (2.9%) on 92.35% of your net self-employment income — a total of 15.3%. Employees split this 50/50 with employers, but self-employed individuals pay both halves. You can deduct half of SE tax from your gross income, and your net SE income qualifies for retirement contribution deductions.
When must I pay quarterly estimated taxes?
You must pay quarterly estimated taxes if you expect to owe $1,000+ in federal tax for the year. Due dates: April 15 (Q1), June 15 (Q2), September 15 (Q3), January 15 of next year (Q4). Missing or underpaying triggers an underpayment penalty. Safe harbor: pay 100% of prior year tax (110% if prior year AGI exceeded $150,000) to avoid penalties.
What retirement accounts are available to self-employed people?
Best options: SEP-IRA (contribute up to 25% of net SE income, max $69,000 in 2024 — easiest to set up). Solo 401k (up to $23,000 employee + 25% employer contribution, max $69,000 — best for higher earners, allows Roth contributions). SIMPLE IRA (up to $16,000 employee contributions). A SEP-IRA or Solo 401k dramatically reduces SE tax burden.