⚠️ Financial Disclaimer: The results provided by this calculator are estimates for informational purposes only. Please consult a qualified financial advisor before making any financial decisions.
What is Self-Employment Tax Calculator?
Calculates the Social Security and Medicare taxes for self-employed individuals, who must pay both the employer and employee portions.
How it Works
1. State 'Net Profit'.
2. Tool calculates 15.3% tax (12.4% SS + 2.9% Medicare).
3. Reveal total tax.
Step-by-Step Guide
- Profit – Net earnings.
- Rate – 15.3% FICA.
- Tax – Amount owed.
Example
Input: $50,000 Profit
Result: $7,650 Tax
FAQ
Why 15.3%?
12.4% Social Security + 2.9% Medicare.
Is this income tax?
No, this is separate payroll tax.
Is it deductible?
You can deduct half of this tax from your gross income.
Are expenses deducted first?
Yes, calculate on Net Profit (Revenue - Expenses).
Quarterly payments?
Usually required to avoid penalties.
Conclusion
Freelance freedom comes with extra tax responsibility. Setting aside this 15.3% (plus income tax) from every check ensures you aren't caught off guard at tax time.