Self-Employment Tax Calculator
Calculate your self-employment tax including Social Security, Medicare, and quarterly estimated payments.
Enter values to see results
Fill in the form and click Calculate
Understanding Self-Employment Tax
Self-employment tax is the Social Security and Medicare taxes that self-employed individuals must pay. Unlike employees who split these taxes with their employer, self-employed individuals pay both the employer and employee portions.
2024 Self-Employment Tax Rates
- Social Security: 12.4% on earnings up to $168,600
- Medicare: 2.9% on all earnings
- Additional Medicare: 0.9% on earnings above $200,000 (single) or $250,000 (married)
Frequently Asked Questions
What is self-employment tax?
Self-employment tax is the Social Security and Medicare taxes that self-employed individuals pay. The total rate is 15.3%: 12.4% for Social Security (up to the wage base) and 2.9% for Medicare (on all earnings). This is equivalent to the combined employer and employee portions of FICA taxes.
How is self-employment tax calculated?
Self-employment tax is calculated on 92.35% of your net self-employment earnings. The Social Security portion (12.4%) applies to earnings up to $168,600 (2024). Medicare tax (2.9%) applies to all earnings, with an additional 0.9% on earnings above $200,000 (single) or $250,000 (married filing jointly).
Can I deduct self-employment tax?
Yes, you can deduct 50% of your self-employment tax when calculating your adjusted gross income (AGI). This deduction is taken on Form 1040 and reduces your income tax liability, though not your self-employment tax itself.
When do I pay self-employment tax?
Self-employment tax is typically paid through quarterly estimated tax payments, due April 15, June 15, September 15, and January 15. If you expect to owe $1,000 or more in taxes, you should make quarterly payments to avoid penalties.