Net Business Profit: $
Self-Employment Tax: $
Estimated Federal Income Tax: $
Total Estimated Tax: $
Effective Tax Rate: %
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";bHTML+="2. SE Taxable Portion (92.35%): $"+seTaxableIncome.toFixed(2)+"
";bHTML+="3. Self-Employment Tax (15.3%): $"+seTax.toFixed(2)+"
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Calculator Use
This self employed tax calculator is designed for freelancers, independent contractors, and small business owners to estimate their annual tax liability. Unlike traditional employees who have taxes withheld by their employer, self-employed individuals are responsible for paying both the employer and employee portions of Social Security and Medicare taxes, known collectively as "Self-Employment Tax."
Use this tool to plan for quarterly estimated tax payments and avoid surprises during tax season. Simply enter your projected revenue and business-related expenses to see your estimated total tax burden.
- Annual Gross Income
- The total revenue your business earns before any expenses are deducted.
- Business Expenses
- Costs directly related to running your business (e.g., supplies, marketing, office space, travel) that are tax-deductible.
- Filing Status
- Your tax filing category (Single, Married, etc.), which determines your standard deduction and income tax brackets.
How It Works
Calculating self-employment tax involves several distinct steps. First, the IRS calculates tax on 92.35% of your net earnings. This specific percentage is used to give you a deduction for the "employer" half of the tax before calculating the tax itself.
Self-Employment Tax = (Net Profit × 0.9235) × 15.3%
- 12.4% goes to Social Security (capped at the annual wage base, $168,600 for 2024).
- 2.9% goes to Medicare (no income cap).
- Income Tax: In addition to SE tax, you owe regular federal income tax on your net profit minus half of your SE tax and your standard deduction.
Calculation Example
Example: A freelance graphic designer earns $80,000 in gross income and has $10,000 in deductible business expenses. They file as Single.
Step-by-step solution:
- Net Profit: $80,000 – $10,000 = $70,000
- SE Taxable Base: $70,000 × 0.9235 = $64,645
- Self-Employment Tax: $64,645 × 15.3% = $9,891
- SE Tax Deduction: $9,891 / 2 = $4,945.50
- Taxable Income: $70,000 – $4,945.50 – $14,600 (Std Ded) = $50,454.50
- Federal Income Tax: Estimated at ~$6,153 (based on 2024 brackets)
- Total Tax: $9,891 + $6,153 = $16,044
Common Questions
Do I have to pay self-employment tax if I make less than $400?
Generally, if your net earnings from self-employment are less than $400, you do not have to pay self-employment tax. However, you may still be required to file a tax return if you meet other filing requirements.
What are "estimated tax payments"?
Because there is no employer to withhold taxes from your paycheck, the IRS requires self-employed individuals to pay taxes in four quarterly installments. If you expect to owe more than $1,000 in taxes for the year, you should use this self employed tax calculator to determine your quarterly payment amounts.
Does this include state taxes?
No, this calculator estimates Federal Self-Employment Tax and Federal Income Tax only. Most states also have their own income tax rates that you will need to calculate separately based on your specific location.