15.3%
Self-employment tax rate (SE tax)
92.35%
Portion of net earnings subject to SE tax
50%
SE tax deductible as business expense
4 times
Annual quarterly estimated payment due dates
How the self-employment tax works
SE tax is 15.3% of your net self-employment income — but not all of it. The IRS applies it to 92.35% of net earnings (net profit minus half of SE tax, effectively). You also deduct 50% of the SE tax amount from your gross income on Schedule 1, which reduces your income tax (but not your SE tax). The net effect: SE tax is roughly equivalent to the combined 15.3% FICA both parties pay for an employee.
Quarterly estimated tax payments
As a self-employed worker, no employer withholds taxes on your behalf. You must estimate and prepay your total tax liability (income tax + SE tax) quarterly. Missing payments or underpaying results in a penalty. The four quarterly deadlines are April 15, June 15, September 15, and January 15. A safe harbor exists if you pay 100% of last year's tax liability (110% if prior year AGI exceeded $150,000).
How to use the SE tax calculator
- Enter your estimated annual net self-employment income (revenue minus business expenses)
- Enter any other income (W-2 wages, investment income)
- Select your filing status
- Choose your state
- Review: SE tax owed, income tax owed, total liability, and suggested quarterly payment amount
💡 Solo 401(k) is powerful for SE workers
Self-employed individuals can contribute to a Solo 401(k) as both employee (up to $23,500 in 2025) and employer (up to 25% of net self-employment income), for a combined maximum of $69,000. Contributions reduce your taxable income but not your SE tax base.
Common mistakes to avoid
- Not setting aside 25–30% of every payment received for taxes throughout the year
- Forgetting to pay quarterly — the underpayment penalty is small but avoidable
- Deducting personal expenses as business expenses — a reliable audit trigger
- Not deducting the employer-equivalent half of SE tax from gross income
- Confusing gross revenue with net income — SE tax applies to net profit after business deductions
Related calculators
The US Income Tax Calculator models both income tax and SE tax together for your full annual picture. The W-4 Withholding Calculator helps if you have a mix of W-2 and self-employment income. And the Take-Home Pay Calculator shows equivalent net pay benchmarks if you're comparing employment vs. freelancing compensation.