Tax & Paycheck Calculators
Self-Employment Tax Calculator
For any self-employed income — freelance, consulting, a side business, or a sole proprietorship — including two deductions most calculators skip: self-employed health insurance and QBI.
Calculate your self-employment tax
Works for any 1099, freelance, or business income — not tied to a specific platform.
Deductions that reduce your tax
Federal only — doesn't include state income tax. QBI deduction shown at the general 20% rate; specified service businesses (consulting, health, law, and similar) phase this out at higher income levels, which isn't modeled here.
How self-employment tax works, for any type of self-employed income
Whether you freelance, consult, run a side business, or work as a sole proprietor, the mechanics are the same: self-employment tax is 15.3%, calculated on 92.35% of your net profit — 12.4% for Social Security (up to the annual wage base) and 2.9% for Medicare (no cap). This replaces the FICA tax an employer would normally split with you; as a self-employed person, you pay both halves yourself. Once your net self-employment earnings reach $400, you owe this tax regardless of your total income.
Two deductions this calculator adds that many others skip
Self-employed health insurance deduction
If you pay for your own health, dental, or vision insurance — and you're not eligible for subsidized coverage through an employer (yours or a spouse's) — you can deduct 100% of those premiums directly from your income, above the line, without itemizing. This is capped at your net self-employment income after the SE tax deduction and retirement contributions, and it doesn't reduce your self-employment tax itself, only your income tax.
QBI (Qualified Business Income) deduction
Most self-employed filers can deduct up to 20% of their qualified business income, one of the largest available deductions and one that's genuinely easy to miss if you're estimating taxes by hand. It reduces income tax, not SE tax, and is limited to 20% of your taxable income before the deduction itself — both limits are modeled in the calculator above. Higher-income filers in certain "specified service" fields (consulting, health, law, and similar) can see this deduction phase out, which isn't modeled here and is worth checking with a tax professional if it applies to you.
What actually reduces your bill, and by how much
| Lever | Reduces SE tax? | Reduces income tax? |
|---|---|---|
| Business expense deductions (mileage, equipment, software, etc.) | Yes | Yes |
| Half of SE tax | No | Yes |
| Self-employed health insurance | No | Yes |
| Retirement contributions (SEP-IRA, Solo 401(k)) | No | Yes |
| QBI deduction | No | Yes |
Business expenses are the only lever on this list that reduces both taxes — because they lower the net profit SE tax is calculated on in the first place. Everything else only reduces income tax, which is why maximizing legitimate business deductions matters more than most people realize.
Quarterly estimated payments
Self-employment income isn't subject to withholding, so most self-employed filers with a meaningful tax liability need to make quarterly estimated payments to avoid an underpayment penalty:
| Period | Due date |
|---|---|
| Q1 (Jan – Mar) | April 15 |
| Q2 (Apr – May) | June 16 |
| Q3 (Jun – Aug) | September 15 |
| Q4 (Sep – Dec) | January 15 (following year) |
When to consider an S-corp election
Once net self-employment income consistently runs above roughly $60,000–$80,000, it's worth evaluating whether electing S-corp tax treatment could reduce your overall tax by splitting income between a salary (subject to payroll tax) and distributions (not subject to SE tax). The added payroll and compliance costs generally need to be weighed against the savings — our S Corp Tax Calculator can help you compare the two structures directly with your own numbers.
Self-employment tax mechanics reflect standard IRC §1401 rules. Self-employed health insurance deduction (IRC §162(l), Form 7206) and QBI deduction (IRC §199A) mechanics verified against multiple independent 2026 tax guides, including a matching worked example. This is a planning estimate — a tax professional can confirm your specific deduction eligibility, especially for the health insurance deduction's employer-coverage exclusions and QBI's specified-service-business limitations.
Frequently asked questions
Before you file your self-employment taxes.
How do I calculate self-employment tax?
Multiply your net self-employment income by 92.35%, then apply 15.3% (12.4% Social Security up to the annual wage base, plus 2.9% Medicare with no cap). You can then deduct half of that SE tax amount from your income when calculating income tax.
Can I deduct my health insurance premiums as a self-employed person?
Yes, generally 100% of premiums for yourself, your spouse, and dependents, as an above-the-line deduction — as long as you're not eligible for subsidized coverage through an employer plan (yours or a spouse's) for that period.
What is the QBI deduction?
A deduction of up to 20% of your qualified business income, available to most self-employed filers, subject to limitations for higher earners in certain specified service fields. It reduces income tax but not self-employment tax.
Do retirement contributions reduce my self-employment tax?
No — SEP-IRA, Solo 401(k), and similar contributions reduce your income tax by lowering taxable income, but they don't reduce the 15.3% self-employment tax itself, which is calculated on net profit before these contributions.
When should I consider becoming an S-corp?
Once net self-employment income consistently exceeds roughly $60,000-$80,000, it's often worth comparing S-corp tax treatment against staying a sole proprietor, since S-corp status can reduce the portion of income subject to self-employment tax — but added payroll and compliance costs need to be weighed against the savings.