Self-Employed Tax Estimator

Q: What is self-employment tax?

Self-employment tax covers Social Security at 12.4% and Medicare at 2.9%, totaling 15.3%. When employed, your employer pays half. When self-employed, you pay both halves but can deduct half from your taxable income.

Q: When are quarterly estimated tax payments due?

Q1 is due April 15. Q2 is due June 16. Q3 is due September 15. Q4 is due January 15 of the following year. If you expect to owe $1,000 or more you are generally required to make quarterly payments.

Q: How much should I set aside for self-employment taxes?

A common rule is 25 to 30 percent of net income. Higher earners or those in high-tax states should lean toward 30 to 35 percent.

Q: What is the standard deduction for 2025?

The standard deduction for 2025 is $15,000 for single filers and $30,000 for married filing jointly.

Enter your income, expenses, and filing details to estimate your federal and state tax bill — and how much to set aside each quarter.

Self-employment taxes catch a lot of people off guard. You owe both the employee and employer share of Social Security and Medicare — plus federal income tax on top of that. This estimator shows you the full picture so you can plan ahead, not scramble in April.

Your Tax Details

Gross Self-Employment Income ($)

Business Expenses ($)

Filing Status

State

Retirement Contributions ($) (SEP-IRA, Solo 401k)

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Enter your details and click Estimate My Taxes

Your tax breakdown will appear here

How to Use It

Step 1 — Enter your gross income

This is your total self-employment revenue before any deductions. If you have multiple income streams, add them together.

Step 2 — Enter your business expenses

Include all legitimate business deductions: software, equipment, home office, mileage, professional services. This reduces your net income and your tax bill.

Step 3 — Select your filing status and state

Filing status affects your standard deduction and tax brackets. State selection applies an estimated state income tax rate based on your state's average effective rate.

Step 4 — Add retirement contributions

SEP-IRA and Solo 401k contributions reduce your taxable income dollar for dollar. If you're contributing, enter that amount here.

Step 5 — Read your results

You'll get a full breakdown of SE tax, federal income tax, state tax, total owed, effective rate, and your quarterly estimated payment amount.

How the Math Works

Net SE Income = Gross Income - Business Expenses

SE Tax = Net SE Income x 92.35% x 15.3%. The 92.35% factor accounts for the employer-equivalent deduction built into the SE tax calculation.

SE Tax Deduction = SE Tax / 2. The IRS lets you deduct half your SE tax from your taxable income.

Taxable Income = Net SE Income - SE Tax Deduction - Retirement Contributions - Standard Deduction ($15,000 single / $30,000 married for 2025).

Federal Income Tax is calculated using 2025 IRS tax brackets applied to your taxable income.

State Tax is estimated using your state's average effective income tax rate applied to your net SE income.

Quarterly Payment = Total Tax / 4. The IRS requires quarterly estimated payments if you expect to owe $1,000 or more.

Who This Is For

Freelancers and consultants estimating their annual tax liability

Independent contractors who need to calculate quarterly estimated payments

Small business owners filing as sole proprietors or single-member LLCs

Anyone new to self-employment who got hit with a surprise tax bill and wants to plan better

Tips for Managing Self-Employment Taxes

Set aside 25-30% of every payment you receive

A simple rule that covers most self-employed people. Move it to a separate savings account the day the money hits so you're never tempted to spend it.

Make quarterly payments on time

Due dates are April 15, June 16, September 15, and January 15. Missing them triggers underpayment penalties even if you pay in full at tax time.

Track every business expense

Every dollar of legitimate expense reduces your net income and cuts both your SE tax and income tax. Use accounting software or a dedicated business account to make tracking easy.

Contribute to a retirement account

A SEP-IRA lets you contribute up to 25% of net self-employment income (max $69,000 for 2025). It's one of the most powerful tax reduction tools available to self-employed people.

Don't forget the self-employed health insurance deduction

If you pay for your own health insurance, those premiums are fully deductible from your income tax (not SE tax). This calculator doesn't include it -- factor it in when working with your accountant.

Frequently Asked Questions

What is self-employment tax?+

Self-employment tax covers Social Security (12.4%) and Medicare (2.9%), totaling 15.3%. When you're employed, your employer pays half. When you're self-employed, you pay both halves -- but you can deduct half of it from your taxable income.

How is self-employment tax different from income tax?+

SE tax funds Social Security and Medicare. Income tax funds general government spending. You owe both. SE tax is calculated first, then half of it is deducted before income tax is calculated.

What counts as self-employment income?+

Any income where no employer withheld taxes: freelance work, 1099 income, business revenue, gig economy earnings, consulting fees, rental income from active participation, and side business income.

When are quarterly estimated tax payments due?+

Q1: April 15. Q2: June 16. Q3: September 15. Q4: January 15 of the following year. If you expect to owe $1,000 or more for the year, you're generally required to make quarterly payments.

What happens if I miss a quarterly payment?+

The IRS charges an underpayment penalty based on the amount owed and how late it was. Paying in full at tax time does not eliminate the penalty. Use IRS Form 2210 to calculate penalties if you missed a payment.

Can I deduct business expenses to reduce my SE tax?+

Yes. Business expenses reduce your net self-employment income, which reduces both your SE tax and your income tax. This is why tracking expenses is so important -- every dollar deducted saves you roughly 35-40 cents in combined taxes depending on your bracket.

Is this calculator accurate?+

It provides a solid estimate based on 2025 federal tax brackets and average state effective rates. It does not account for all possible deductions, credits, AMT, self-employed health insurance, or other individual factors. Use it for planning -- work with a CPA for your actual return.

What is the standard deduction for 2025?+

$15,000 for single filers and $30,000 for married filing jointly. This calculator applies the standard deduction automatically. If you itemize, your actual tax bill may differ.

How much should I set aside for taxes?+

A common rule is 25-30% of net income. Higher earners or those in high-tax states should lean toward 30-35%. Run this calculator with your numbers to get a more accurate figure specific to your situation.

Does a single-member LLC pay self-employment tax?+

Yes. A single-member LLC is a disregarded entity by default, meaning its income flows to your personal return as self-employment income. You owe SE tax on all net profits unless you elect S-corp treatment.

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