Self-employment tax calculator
Enter your net freelance profit and see the Social Security and Medicare tax you'll owe on it. This is the tax that surprises most first-year freelancers — it's separate from income tax.
Estimate only. Figures update as you type. Not tax advice — see the note at the bottom of this page.
How self-employment tax works
When you work for an employer, you pay half of Social Security and Medicare and your employer pays the other half. When you work for yourself, you pay both halves. That combined rate is 15.3%, and it applies on top of any income tax you owe.
Two details soften it. First, the tax applies to 92.35% of your net profit rather than all of it. Second, you can deduct half of what you pay when figuring your income tax — that's the deductible half shown above.
What counts as net profit
Net profit is what's left after you subtract deductible business expenses from your gross freelance income. Software, mileage, a home office, professional fees, and equipment commonly qualify. Every dollar of legitimate expense you track reduces both this tax and your income tax, which is why expense tracking pays for itself quickly.
Why the Social Security cap matters
Social Security tax stops at an annual earnings cap, but Medicare keeps applying no matter how much you earn. If you also hold a W-2 job, those wages fill the cap first. Someone earning well above the cap at a day job may owe only the Medicare portion on their freelance work, which is a dramatically smaller number.
Common questions
Do I owe self-employment tax if I only made a little?
Self-employment tax generally kicks in once net earnings reach $400 for the year. Below that threshold you typically won't owe it, though you may still need to report the income.
Is self-employment tax the same as income tax?
No. They are two separate taxes calculated on different bases, and you may owe both on the same freelance income. Self-employment tax funds Social Security and Medicare; income tax is figured using brackets after deductions.
Does having a regular job reduce this?
It can. Social Security tax applies only up to an annual wage cap, and W-2 wages count toward that cap first. High wages can reduce or eliminate the Social Security portion of your self-employment tax. The Medicare portion has no cap.