US Tax Calculator
Estimate taxes by worker type: employee, self-employed, or corporation owner.
SE taxable earnings (92.35%)$46,175.00
Social Security tax (6.2%, capped)$5,725.70
Medicare tax (1.45%)$1,339.08
Self-employment tax$7,064.78
Deductible part of SE tax (50%)$3,532.39
Federal taxable income$31,467.61
Federal income tax$3,537.61
State income tax (estimate, on gross income)$0.00
Estimated net income$39,397.61
This is an estimate for reference only. State tax is applied to gross income as a flat rate approximation — actual rates vary by state. Consult a tax professional for official advice.
How self-employment tax works
Freelancers are often caught out: income tax is not the only bill. Self-employment tax sits on top of it and is calculated on a different base.
Two separate taxes
Self-employed people owe federal income tax and self-employment (SE) tax. They are calculated separately on different bases, and both are due.
SE tax covers Social Security and Medicare. As an employee, you pay half and your employer pays the other half. Working for yourself, you pay both halves — which is why the bill surprises people moving from employment to freelancing.
How SE tax is calculated
SE tax is 15.3% in total: 12.4% for Social Security plus 2.9% for Medicare.
It does not apply to your full net profit. You first multiply net earnings by 92.35%, which strips out the employer's half of FICA — a share an employee is never taxed on either. The Social Security portion only applies up to an annual wage base that rises most years; the Medicare portion has no cap, and an additional 0.9% applies above a threshold that depends on filing status.
Brackets are marginal
Federal income tax uses progressive brackets, and a common misunderstanding is that crossing into a higher bracket taxes all your income at that rate.
Only the amount above each threshold is taxed at the higher rate. Earning one dollar more never leaves you with less after tax. Your marginal rate applies to the last dollar; your effective rate across all income is always lower.
Deductions that reduce the bill
Half of your SE tax is deductible against income tax, which softens the double-payment effect. Note it reduces income tax, not SE tax itself.
Ordinary and necessary business expenses reduce net profit, which reduces both taxes. The qualified business income (QBI) deduction can remove up to 20% of qualifying business income from taxable income, subject to income limits and business-type rules. Self-employed health insurance premiums and retirement plan contributions may also be deductible.
Quarterly estimated payments
Employees have tax withheld each paycheck. Self-employed people generally have to send estimated payments four times a year rather than settling everything at filing.
Missing them can trigger an underpayment penalty even if you pay in full by the deadline. Safe-harbor rules — paying a set percentage of last year's tax or of the current year's liability — generally protect you from that penalty. State requirements are separate and vary.
This is an estimate
Actual liability depends on filing status, dependents, credits, deductions, state and local rules, and thresholds that change annually. The figures here indicate rough scale only.
Rates, wage bases and standard deduction amounts are adjusted most years, so confirm current numbers against IRS guidance or a tax professional before relying on them. State income tax varies widely and some states levy none at all.
Self-employment tax structure| Component | Rate and base |
|---|
| Base for SE tax | Net earnings × 92.35% |
|---|
| Social Security | 12.4%, capped at the annual wage base |
|---|
| Medicare | 2.9%, no cap |
|---|
| SE tax total | 15.3% |
|---|
| Additional Medicare | 0.9% above a filing-status threshold |
|---|
| Income tax deduction | Half of SE tax is deductible |
|---|
Frequently asked questions
- Why do I owe more than an employee on the same income?
- Because you pay both halves of Social Security and Medicare. An employer normally covers half, so self-employment carries the full 15.3% rather than 7.65%.
- Is SE tax charged on all my profit?
- No, on 92.35% of net earnings. That adjustment approximates the employer-side share an employee would not be taxed on.
- Will earning more push all my income into a higher bracket?
- No. Brackets are marginal, so only the amount above each threshold is taxed at the higher rate. Earning more never reduces your after-tax income.
- Can I deduct the self-employment tax I pay?
- Half of it, against income tax rather than against SE tax itself. It reduces taxable income, not the SE tax calculation.
- Do I have to pay quarterly?
- Generally yes. Without withholding, estimated payments are due four times a year, and skipping them can trigger an underpayment penalty even if you settle in full at filing.
- Can I file based on this estimate?
- No. Thresholds, wage bases and deduction amounts change most years, and state rules vary. Confirm with IRS guidance or a tax professional.
