Self-Employment Tax Calculator

Estimate your self-employment tax, federal income tax, and exactly what percentage of your income to set aside — based on 2025 U.S. figures.

Your situation

Set aside roughly

0% of net income
≈ $0 total for the year
Per month: $0
Effective rate: 0%
Self-employment tax (15.3%)$0
Federal income tax$0
State income tax$0
Total estimated tax$0
Take-home after tax$0

Estimate only, not tax advice. Based on 2025 federal figures; ignores credits, deductions (beyond the standard deduction and the SE-tax deduction), QBI, and local taxes. Consult a tax professional.

Don't get surprised by a tax bill

The freelancers who never panic in April are the ones who set money aside every month and track expenses as they go. Accounting software built for the self-employed automates expense tracking, estimates quarterly taxes, and flags deductions you'd otherwise miss.

How self-employment tax actually works

When you're an employee, your employer quietly pays half of your Social Security and Medicare taxes. When you're self-employed, you pay both halves yourself — that's the self-employment tax, 15.3% on 92.35% of your net earnings (12.4% for Social Security up to the annual wage base, plus 2.9% for Medicare with no cap). This is on top of regular income tax, which is the part that catches new freelancers off guard.

The good news: you can deduct half of your self-employment tax when calculating income tax, and the standard deduction still applies. This calculator accounts for both, then layers on an estimated state rate so the number you see is closer to reality than a flat "set aside 30%" rule of thumb.

Why "set aside 25–30%" is only a starting point

Popular advice says save 25–30% of freelance income for taxes. That's a reasonable default, but your real number depends on total household income, filing status, and your state. A single freelancer in California faces a very different bill than a married one in Texas earning the same amount. Use your actual numbers above instead of a blanket percentage.

Pay quarterly to avoid penalties

The IRS expects self-employed people to pay estimated taxes four times a year, not in one lump sum. Missing quarterly payments can trigger underpayment penalties even if you pay in full by April. Divide the total above by four as a rough quarterly target.

FAQ

What percentage should I save for taxes as a freelancer?

For most U.S. freelancers, 25–35% of net income is a safe set-aside, but enter your real numbers above for a tighter estimate. Higher earners and high-tax states should lean toward the upper end.

Does this include state taxes?

It applies a flat state rate you enter, as a rough approximation. Real state taxes are often progressive and vary widely — treat the state portion as a ballpark.

What's the difference between SE tax and income tax?

Self-employment tax funds Social Security and Medicare (15.3%). Income tax is separate and based on your total taxable income and bracket. You owe both, which is why freelance tax bills feel high.