Self-Employment Tax Calculator
Calculate your exact 1099 self-employment tax burden: the 15.3% FICA breakdown (Social Security & Medicare), statutory 92.35% taxable profit basis, 50% AGI write-off, and estimated quarterly voucher obligations.
1099 Business Income & Expenses
Supplies, software subscriptions, travel, home office, advertising, and contractor fees.
If you also have a day job, your employer already pays 6.2% FICA, saving you Social Security SE tax!
The IRS 92.35% Taxable Rule Explained
Regular W-2 employees split FICA 50/50 with their employer (employees pay 7.65%, employers pay 7.65%). As a freelancer or sole proprietor, you are both employer and employee, paying the full 15.3%.
To level the playing field, the IRS allows you to multiply your net profit by 92.35% (100% minus 7.65%) before calculating your 15.3% tax. You also deduct half of your total SE tax directly on Form 1040 Schedule 1!
2026 Estimated Tax Deadlines (Form 1040-ES)
How to Reduce Self-Employment Tax: The S-Corporation Election
When your net freelance profit consistently surpasses $80,000 to $100,000 per year, forming an LLC and electing S-Corporation tax status (IRS Form 2553) can save thousands in FICA taxes.
Frequently Asked Questions
What if my net profit is under $400?
Under IRS regulations, if your net earnings from self-employment are less than $400 for the tax year, you are exempt from paying self-employment tax on those profits, though you may still need to file a tax return if your total income meets standard filing requirements.
Does self-employment tax include federal income tax?
No. Self-employment tax covers only Social Security and Medicare (FICA). You must also pay regular federal and state income taxes on your taxable net earnings.
How does my W-2 job affect my self-employment tax?
The Social Security tax has an annual maximum wage limit ($168,600 in 2026). If your W-2 employer already withholds Social Security taxes up to this limit, your self-employment income is completely exempt from the 12.4% Social Security tax, leaving only the 2.9% Medicare tax.
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