Self-Employment Tax Calculator
Calculate your SE tax (15.3%), quarterly estimated payments, the half-SE deduction, and total tax burden as a freelancer, 1099 contractor, or sole proprietor. 2026 rates.
Calculator
How it works
Calculation methodology
Self-Employment Tax: The Hidden Cost of Being Your Own Boss
When you’re employed by a company, your employer pays half of your Social Security and Medicare taxes. Self-employed individuals pay both the employee half and the employer half — a total of 15.3% on net earnings up to the Social Security wage base ($184,500 in 2026), then 2.9% above that.
The SE Tax Calculation Step by Step
| Step | Calculation | Example ($90k revenue, $12k expenses) |
|---|---|---|
| 1. Net SE income | Revenue − business expenses | $90,000 − $12,000 = $78,000 |
| 2. SE tax base | Net × 0.9235 | $78,000 × 0.9235 = $72,033 |
| 3. SE tax | Base × 15.3% | $72,033 × 15.3% = $11,021 |
| 4. Half-SE deduction | SE tax ÷ 2 | $11,021 ÷ 2 = $5,511 |
| 5. AGI | Net − half-SE − other deductions | $78,000 − $5,511 = $72,489 |
Top Tax-Saving Strategies for Self-Employed
Maximize your SEP-IRA or Solo 401(k) contributions — these reduce your taxable income dollar-for-dollar. A $20,000 contribution in the 22% bracket saves $4,400 in federal income tax. Self-employed health insurance premiums are 100% deductible from income tax (not SE tax) if you’re not eligible for employer-sponsored coverage. The home office deduction is $5/sq ft for up to 300 sq ft, or actual expenses if higher. Track vehicle miles — at $0.70/mile (2026 rate), a 10,000-mile work year generates a $7,000 deduction.
For take-home pay comparison to W-2 employment, use our Take-Home Pay Calculator.
Questions