💼 Self-Employment Tax Calculator
Calculate exactly how much you owe in Social Security and Medicare taxes as a freelancer or independent contractor. Uses 2025 IRS rates.
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Your SE Income
$
Total 1099/freelance income before any deductions.
$
Deductible business expenses (home office, equipment, software, etc.). SE tax applies to net income only.
📌 How SE Tax Works
- SE tax = 15.3% on 92.35% of net self-employment income
- Consists of: 12.4% Social Security + 2.9% Medicare
- SS only applies up to $176,100 in 2025
- You can deduct 50% of your SE tax from your income taxes
Total SE Tax Owed
$0
Enter income to see your breakdown
Enter your income to see your SE tax breakdown.
Estimate only. Consult a tax professional. Does not include state taxes.
💡 Ways to Reduce Your SE Tax
- Maximize business deductions — reduces net income subject to SE tax
- Contribute to SEP-IRA or Solo 401(k) — lowers your AGI
- Track all mileage — 70¢/mile deduction in 2025
- Deduct home office — if you have dedicated workspace
- Self-employed health insurance — fully deductible
Understanding the Self-Employment Tax
When you work as an employee, your employer pays half (7.65%) of your Social Security and Medicare taxes. As a self-employed person, you pay both halves — 15.3% total on your net income. Here's how it breaks down:
2025 SE Tax Breakdown
| Tax | Rate | On What | 2025 Limit |
|---|---|---|---|
| Social Security (Employee + Employer) | 12.4% | 92.35% of net SE income | First $176,100 |
| Medicare (Employee + Employer) | 2.9% | 92.35% of net SE income | No limit |
| Additional Medicare | 0.9% | 92.35% of net SE income | Above $200,000 |
| Total (under SS limit) | 15.3% | ×0.9235 × net SE income | — |
The Half-Deduction Benefit: The IRS lets you deduct 50% of your SE tax from your gross income before calculating income tax. For example, if you owe $7,650 in SE tax, you can deduct $3,825 from your taxable income — saving you hundreds in income taxes.
Frequently Asked Questions
Employees pay 7.65% — but their employer matches it for another 7.65%. Self-employed people are both the employee and employer, so they pay both halves: 6.2% + 6.2% = 12.4% Social Security, and 1.45% + 1.45% = 2.9% Medicare, totaling 15.3%.
Before calculating SE tax, the IRS multiplies your net self-employment income by 92.35% (= 1 − 0.0765). This effectively accounts for the employer's "share" — since you can deduct 50% of SE tax, the math works out so you pay tax on 92.35% of net income rather than 100%.
SE tax applies to net self-employment income — that's gross revenue minus business expenses. If you earned $80,000 but had $20,000 in deductible expenses, SE tax applies to $60,000 (×92.35% = $55,410). This is why tracking and claiming all valid deductions is so important.
You can reduce but not entirely avoid SE tax if you have genuine self-employment income. Common strategies: maximize business deductions to reduce net income, structure your business as an S-corporation (shareholders pay SE tax only on "reasonable salary," not distributions), or contribute to tax-deferred retirement accounts which lower AGI but not SE tax base.
Quarterly Tax Calculator
How much to pay the IRS each quarter.
Net Income Calculator
Your actual take-home after all taxes.
Deduction Finder
Lower your taxable SE income.
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