Self-Employed Tax Calculator
Estimate your self-employment tax, federal income tax, and state income tax for the 2025 tax year.
How Self-Employment Tax Works
When you work for yourself, you're responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This is known as the self-employment (SE) tax, and it totals 15.3% of your net earnings.
What's Included in Self-Employment Tax
The SE tax has two components: Social Security tax at 12.4% (applied to the first $176,100 of net earnings in 2025) and Medicare tax at 2.9% (applied to all earnings with no cap). If your net earnings exceed $200,000 (single) or $250,000 (married filing jointly), an additional 0.9% Medicare surtax applies to the amount above the threshold.
Importantly, only 92.35% of your net self-employment income is subject to SE tax. And you can deduct half of your SE tax from your adjusted gross income, which reduces your overall tax burden.
The QBI Deduction (Section 199A)
The Qualified Business Income deduction allows most self-employed individuals to deduct up to 20% of their net business income from taxable income. This deduction is taken on top of the standard deduction, significantly reducing your taxable income. It applies to sole proprietorships, LLCs, and S-corporations.
Federal Tax Brackets (2025)
After deductions (standard deduction + QBI deduction), your remaining taxable income is taxed at progressive federal rates ranging from 10% to 37%. The bracket widths depend on your filing status. Our calculator automatically applies the correct brackets based on your selection.
Frequently Asked Questions
How much is self-employment tax?
Self-employment tax is 15.3% of your net earnings: 12.4% for Social Security (up to the wage base of $176,100 in 2025) and 2.9% for Medicare (no limit). An additional 0.9% Medicare surtax applies to earnings above $200,000 (single) or $250,000 (married filing jointly).
What is the QBI deduction?
The Qualified Business Income (QBI) deduction under Section 199A allows eligible self-employed individuals to deduct up to 20% of their qualified business income from their taxable income. This deduction is available regardless of whether you itemize deductions.
Do I need to pay quarterly estimated taxes?
Yes. If you expect to owe $1,000 or more in taxes for the year, the IRS requires you to make quarterly estimated tax payments using Form 1040-ES. The due dates are typically April 15, June 15, September 15, and January 15.
How accurate is this calculator?
This calculator uses official 2025 federal tax brackets and standard deduction amounts. State tax rates are simplified estimates. For a complete and accurate tax calculation, consult a CPA or use IRS Schedule C, Schedule SE, and your state's tax forms.