Self-Employment Tax Calculator
Calculate your self-employment tax, federal and state income tax, and quarterly estimated payments as a freelancer or 1099 contractor. See your complete tax breakdown.
Annual Tax Breakdown
Summary
Quarterly Estimated Payments
Tax Breakdown
See your complete freelancer financial picture
Your estimated quarterly tax payment is $5,101. Model your freelance income alongside expenses, savings, and investments in the full simulator.
Try the Full SimulatorHow Self-Employment Tax Works
If you work as a freelancer, independent contractor, or gig worker, you are responsible for paying self-employment (SE) tax in addition to regular income tax. Unlike W-2 employees who split FICA and Medicare taxes with their employer, self-employed individuals pay both the employee and employer portions.
The SE tax rate is 15.3% — 12.4% for Social Security and 2.9% for Medicare. However, you only pay SE tax on 92.35% of your net earnings (gross income minus business expenses), which accounts for the fact that employees don't pay FICA on the employer's share. Additionally, you can deduct half of your SE tax from your adjusted gross income when calculating your income tax.
15.3%
Total SE Tax Rate
12.4%
Social Security
2.9%
Medicare
92.35%
Taxable Base
Tax Deductions for Freelancers
Reducing your taxable income through legitimate business deductions is one of the most effective ways to lower your overall tax burden. Here are the most common deductions available to self-employed individuals:
Home office deduction — use a dedicated space exclusively for business. Simplified method: $5/sq ft up to 300 sq ft. Regular method: actual expenses proportional to business use.
Equipment and technology — computers, monitors, printers, cameras. Items over $2,500 may need depreciation, or use Section 179 for full deduction in purchase year.
Software and subscriptions — design tools, project management, cloud storage, accounting software are fully deductible.
Health insurance premiums — deduct 100% for yourself, spouse, and dependents. This above-the-line deduction reduces your AGI.
Vehicle expenses — standard mileage rate (67 cents/mile for 2025) or actual expenses. Keep detailed mileage logs.
Professional development — courses, certifications, books, conferences, and training related to your business.
Retirement contributions — SEP IRA (up to 25% of net earnings, max $69,000) or Solo 401(k) reduces taxable income while building retirement savings.
Quarterly Estimated Taxes Explained
W-2 employees have taxes withheld from each paycheck throughout the year. Self-employed individuals don't have an employer withholding taxes, so the IRS requires quarterly estimated tax payments instead. Missing these payments or underpaying can result in penalties and interest.
April 15
First quarter payment due — covers January through March income.
June 15
Second quarter payment due — covers April through May income.
September 15
Third quarter payment due — covers June through August income.
January 15
Fourth quarter payment due — covers September through December income of the previous year.
Model Your Freelance Finances Over Time
This calculator shows your annual tax bill. Trajectoryy's full simulator models your freelance income alongside W-2 income, expenses, savings, investments, and more — month by month for years into the future.
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