Estimate your self-employment tax liability including both the employer and employee portions of Social Security and Medicare. Factor in business expenses, retirement contributions, and health insurance to calculate quarterly estimated tax payments.
Self-employment tax is the surprise that hits most new freelancers and small business owners hard. Unlike W-2 employees who split FICA (Social Security + Medicare) 50/50 with their employer, self-employed workers pay both halves — a combined 15.3% on top of federal income tax. On $80K of self-employment income, that's about $11,300 in SE tax before federal income tax even starts.
This calculator computes Schedule SE tax (the 15.3%) on net self-employment earnings after expenses, then estimates total federal tax liability including income tax. It also helps you size quarterly estimated tax payments — the IRS expects self-employed people to pre-pay tax throughout the year rather than wait until April.
Two breaks make SE tax manageable: (1) you can deduct half of your SE tax when calculating AGI for income tax purposes, and (2) Social Security tax (12.4% of the 15.3%) only applies up to the Social Security wage base — $176,100 in 2026. Above that, you only pay the Medicare portion (2.9%, plus 0.9% additional Medicare tax over $200K single / $250K MFJ).
$100K gross from consulting, $15K business expenses, no W-2 income, single. Net SE: $85,000 SE tax: ~$12,010 Federal income tax: ~$11,710 Total federal: ~$23,720 (24% of net SE) Plus state income tax (if applicable). A self-employed person making $85K net pays roughly the same total federal tax as a W-2 earner at the same gross — but they have to write the checks themselves instead of having it withheld.
$60K W-2 + $30K self-employment side income, $5K business expenses, single. W-2 already paid SS tax on $60K. Self-employment Social Security applies to (176,100 − 60,000) − or less if SE income is smaller. In this case all $25,000 of net SE income is below the cap. Net SE: $25,000 SE tax: 25,000 × 0.9235 × 0.153 ≈ $3,532 Plus income tax on combined income.
Use this calculator if any portion of your income is from self-employment, freelance work, gig work (Uber, DoorDash, Instacart), small business activity, or rental property in certain circumstances.
For accurate quarterly estimates: - Estimate annual income and SE tax using this calculator - Divide by 4 - Pay each quarter (April 15, June 15, September 15, January 15) - Adjust as your actual income comes in
The IRS safe-harbor rule: you avoid underpayment penalties if you pre-pay either 100% of last year's total tax (110% if AGI >$150K) or 90% of current year's tax. For people with variable income, paying based on last year's tax is often easier.
For full-blown tax planning, consult a CPA — especially if you have an S-corp election, multiple business entities, or large variable income. This calculator handles the basic Schedule SE math.
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Total Tax Liability
$18,418
Self-Employment Tax
$12,010
Quarterly Payment
$4,605
Effective Tax Rate
21.7%