Self-Employment Tax Calculator (1099)
Estimate your self-employment tax (Social Security + Medicare) and income tax on freelance or 1099 profit.
Net Self-Employment Profit (annual)
$
Other W-2 Wages (if any)
$
Filing Status
Self-Employment Tax
$11,304
Social Security (12.4%)
$9,161
Medicare (2.9%+)
$2,143
Half of SE tax deduction: $5,652
Estimated federal income tax: $7,971
Total estimated federal tax owed
$19,274
How this calculator works
As a self-employed person or 1099 contractor, you pay both the employee and employer halves of Social Security and Medicare — 15.3% combined, versus the 7.65% a W-2 employee sees deducted from their paycheck (their employer quietly pays the other half). This calculator estimates your self-employment tax and gives a rough estimate of income tax on top, so you know what to set aside for quarterly estimated payments.
How SE tax is actually calculated
- Net profit is first reduced to 92.35% — this accounts for the employer-equivalent portion, mirroring how a W-2 employer's share isn't itself taxed as wages.
- 12.4% Social Security tax applies up to the annual wage base ($176,100 for 2025) — shared with any W-2 wages you also earned this year.
- 2.9% Medicare tax applies with no cap.
- An additional 0.9% Medicare surtax applies to combined wages + SE earnings above $200,000 for your filing status.
- Half of the Social Security + regular Medicare portion (not the 0.9% surtax) is deductible against your income tax — the "above the line" SE tax deduction.
Common Use Cases
- Setting aside the right percentage of freelance income for taxes throughout the year.
- Estimating quarterly estimated tax payments before the IRS deadline.
- Comparing take-home pay between a W-2 offer and a 1099 contract at the same gross rate.
- Understanding why a side hustle's tax bill feels disproportionately large.
FAQs
Do I owe SE tax on every dollar of profit?
SE tax applies to net profit (revenue minus business expenses), not gross revenue — and only above $400 of net earnings does SE tax apply at all. Track business expenses carefully; they reduce both your income tax and your SE tax.
What if I also have a W-2 job?
Your W-2 wages count first against the Social Security wage base — if your W-2 income alone already exceeds the cap, none of your self-employment earnings owe the 12.4% Social Security portion, only the uncapped 2.9% Medicare portion.
Is the income tax estimate exact?
No — it's a simplified estimate using the federal standard deduction and brackets only, and doesn't account for state tax, the Qualified Business Income (QBI) deduction, retirement plan contributions (SEP-IRA, Solo 401(k)), health insurance premiums, or other above-the-line deductions that commonly apply to self-employed filers and can meaningfully lower this number.