Self-Employment Tax Calculator 2025
Calculate your self-employment (SE) tax for freelancers, contractors, and business owners. Includes Social Security, Medicare, deductible SE tax, and estimated quarterly payments.
TRY EXAMPLE SCENARIO:
Understanding SE Tax
Self-employment tax covers your Social Security and Medicare contributions. Unlike W-2 employees, you pay both the employee and employer portions.
2025 SE Tax Rates
- Social Security: 12.4% on income up to $168,600
- Medicare: 2.9% on all income
- Additional Medicare: 0.9% over $200K (single)
- Total Base Rate: 15.3%
How SE Tax is Calculated
- Step 1: Net SE Income = Gross Income - Business Expenses
- Step 2: SE Tax Base = Net SE Income × 92.35%
- Step 3: SE Tax = Base × 15.3%
- Step 4: Deductible = SE Tax × 50%
Key Deductions
- ½ SE Tax: Reduces AGI automatically
- QBI Deduction: Up to 20% of qualified business income
- Health Insurance: 100% deductible for self-employed
- Retirement: SEP IRA, Solo 401(k) contributions
2025 Quarterly Deadlines
- Q1 (Jan-Mar): April 15, 2025
- Q2 (Apr-May): June 16, 2025
- Q3 (Jun-Aug): September 15, 2025
- Q4 (Sep-Dec): January 15, 2026
SE Tax Tips
- Track expenses: Track all business expenses meticulously
- Quarterly payments: Make quarterly payments to avoid penalties
- Retirement: Max out SEP IRA or Solo 401(k) to reduce tax
- QBI: Claim QBI deduction if eligible
- S-Corp: Consider S-Corp election at $60K+ profit
- Separate finances: Keep personal and business finances separate
This calculator provides estimates only. Self-employment tax rules are complex. Consult a tax professional or CPA for personalized advice, especially for S-Corp considerations.
Self-Employment Tax Results
SE Tax Breakdown
SE Tax Components
2025 Quarterly Payment Schedule
Income & Tax Distribution
Tax Optimization Tips
Frequently Asked Questions
Where can I find the official IRS forms for self-employment tax? ▼
Here are the official IRS forms you need for self-employment tax:
- Schedule SE (Form 1040) – Calculate your self-employment tax
- Schedule C (Form 1040) – Report business profit or loss
- Form 1040-ES – Estimated tax payment vouchers
Use our calculator above to estimate your tax, then transfer the amounts to these official forms.
What is self-employment tax and who has to pay it? ▼
Self-employment tax is Social Security and Medicare tax for people who work for themselves. You must pay SE tax if your net self-employment income is $400 or more.
This includes: freelancers, independent contractors, sole proprietors, gig workers (Uber, DoorDash, etc.), and partnership members.
What is the self-employment tax rate for 2025? ▼
The 2025 SE tax rate is 15.3%, consisting of:
- 12.4% for Social Security (on income up to $168,600)
- 2.9% for Medicare (on all income)
- +0.9% Additional Medicare Tax on income over $200,000 (single)
When are quarterly estimated tax payments due? ▼
For tax year 2025, quarterly payments are due:
- Q1: April 15, 2025
- Q2: June 16, 2025
- Q3: September 15, 2025
- Q4: January 15, 2026
Pay online at IRS.gov/payments or mail with Form 1040-ES vouchers.
How can I reduce my self-employment tax? ▼
Legal ways to reduce SE tax:
- Maximize business deductions – Track all legitimate expenses
- Contribute to retirement – SEP IRA (up to $69,000) or Solo 401(k)
- Consider S-Corp election – May save SE tax at $60K+ net income
- Deduct health insurance – 100% deductible for self-employed