PayoutMath
✓ Reviewed for accuracy by the PayoutMath team — US sellers and creators who use these platforms · Last verified 25 April 2026
Tax

Self-Employment Tax Calculator (Schedule SE + Federal + State)

Total tax burden for US self-employed sellers and freelancers — Schedule SE (15.3%), federal income tax (2025/2026 brackets), and state income tax for the 8 most populous states.

Last verified: 25 April 2026 Source: Next review: 25 October 2026
Inputs
Schedule C bottom line — gross receipts minus business expenses.
Affects Social Security wage base remaining (only counts toward SS portion of FICA).
Interest, dividends, etc.
Leave 0 to use standard deduction. Calculator uses whichever is higher.
Total tax burden —
After-tax take-home —
Effective tax rate —
Marginal federal rate —
Self-Employment Tax (Schedule SE) —
Federal income tax —
State income tax —
Adjusted Gross Income (AGI) —
Deduction used —
Federal taxable income —

What this calculates

Three taxes stacked, the way the IRS actually structures them:

  1. Self-Employment Tax (Schedule SE) — 15.3% on 92.35% of your net SE earnings. This is the FICA equivalent for self-employed people: 12.4% Social Security (capped at the wage base — $176,100 for 2025, $184,500 for 2026) plus 2.9% Medicare (uncapped). Half of this is deductible from AGI.

  2. Federal Income Tax — IRS published 2025 + 2026 brackets, applied after the standard deduction (or itemized, whichever is higher).

  3. State Income Tax — for the 8 most populous US states (covers ~50% of the population): California, Texas, New York, Florida, Pennsylvania, Illinois, Ohio, Georgia. Texas and Florida have no state income tax.

The order matters. SE tax is calculated first because half of it reduces your AGI for federal purposes. State tax is calculated on AGI (with state-specific deductions where applicable).

What you put in

  • Net SE income: your Schedule C bottom line. Gross receipts minus business expenses. NOT gross sales.
  • W-2 wages: if you have a day job alongside self-employment, this affects how much Social Security wage base remains. Above $184,500 combined (2026), no more SS portion is owed.
  • Filing status: Single, MFJ, or Head of Household. Brackets and standard deduction differ.
  • State: pick yours from the 8 modeled, or “Other” for federal-only.
  • Tax year: 2025 or 2026. Brackets and standard deduction shift slightly each year.
  • Other income: interest, dividends, rental income.
  • Itemized deductions: only enter if your itemized total exceeds the standard deduction.

What you get out

  • Total tax burden — the sum of SE tax, federal income tax, and state tax.
  • Take-home — gross income minus total tax.
  • Effective tax rate — total tax ÷ gross income. This is the number that matters for comparing self-employed vs W-2.
  • Marginal federal rate — the rate your next dollar of income would be taxed at.
  • Schedule SE breakdown — Social Security portion, Medicare portion, half-deduction.
  • Federal income tax breakdown — AGI, deduction used (standard vs itemized), taxable income, tax owed.
  • State income tax — applicable if your state taxes income.

How the math works (Schedule SE specifically)

If you’ve never filed self-employed before, this is the part that catches everyone out:

You don’t pay 15.3% on your full self-employment income. You pay it on 92.35% of your net SE earnings. The 7.65% reduction is to make the math equivalent to W-2 employees, who pay 7.65% FICA themselves and have an employer pay another 7.65% — the employer share is deductible from the employee’s wages, so to mirror that, the IRS lets self-employed people deduct an equivalent share before calculating SE tax.

Then half of the SE tax you calculated is deductible from your AGI for federal income tax purposes. So if you owe $7,000 in SE tax, you reduce your AGI by $3,500 before applying federal income tax brackets.

This deduction is automatic — the calculator handles it. But it’s worth understanding because it means your effective SE tax burden is less than the full 15.3% headline rate.

What the numbers don’t include

  • AMT (Alternative Minimum Tax) — affects high earners with large itemized deductions
  • QBI deduction — Section 199A pass-through deduction (up to 20% reduction of SE income)
  • Local/city income tax — NYC, San Francisco, Detroit, several others
  • Self-employed retirement contributions — SEP-IRA, Solo 401k can shelter major portions of income
  • Health insurance premiums — fully deductible for self-employed if you don’t have access to employer coverage
  • Quarterly estimated tax penalties — if you under-pay during the year
  • Quarterly estimated tax timing — covered separately in our quarterly estimated tax calculator (planned)

Sources

Last verified: April 2026.

About this calculator. Maintained independently — a US-based seller and creator who actually uses these platforms (Etsy, eBay, Amazon). Built to be accurate, mobile-fast, and honest about its limits. Spot a bug? Email hello@payoutmath.com.
Was this page helpful?

Frequently asked questions

How much is self-employment tax?

Self-employment tax is 15.3% on the first $168,600 (2024) of net self-employment income: 12.4% Social Security + 2.9% Medicare. Above $168,600, only the 2.9% Medicare rate applies (plus 0.9% Additional Medicare Tax above $200,000 for single filers).

Can I deduct self-employment tax?

Yes. You can deduct half of your self-employment tax from your gross income on Schedule 1. This reduces your income tax (but not your self-employment tax itself). The deduction is calculated on Schedule SE.

What is the self-employment tax threshold?

You owe self-employment tax if your net self-employment income is $400 or more for the year. Below $400, no SE tax is due (though the income may still be subject to income tax if your total income exceeds the standard deduction).

Do I pay income tax AND self-employment tax?

Yes. Self-employment tax (Social Security + Medicare) is separate from federal income tax. You pay both on your net self-employment income. The combined effective rate on a modest self-employment income can reach 25–30% before state taxes.

What expenses can I deduct from self-employment income?

Allowable deductions include home office, business equipment, software subscriptions, professional services, vehicle mileage (at the IRS standard rate), health insurance premiums, and retirement contributions. These reduce your net income, lowering both income tax and self-employment tax.

I have a W-2 job and side hustle. Do I owe SE tax on the side hustle?

Yes — any net SE income above $400/year triggers SE tax. The Social Security portion is capped at the wage base ($184,500 for 2026); if your W-2 wages already used most of that, the SE tax SS portion is reduced. The calculator factors this in when you enter W-2 wages.

What’s the difference between SE tax and federal income tax?

SE tax (Schedule SE) is FICA — Social Security + Medicare — the payroll tax. It funds those programs. Federal income tax is separate and applies to all income (W-2, SE, investment, etc.). You owe both. The calculator separates them out so you can see each.

Do I have to file Schedule SE if my SE income is small?

Only if your net SE earnings are $400 or more in the year. Below $400, no SE tax owed (though you may still owe federal income tax).

Why isn’t my state listed?

We model the 8 most populous states which cover ~50% of the US population. For other states, run the calculator with ‘Other’ selected — you’ll get accurate federal+SE numbers and can add state separately. Most states’ rates and brackets are similar to the ones modeled, so the federal+SE numbers will be the bulk of your obligation.

How accurate is this for tax planning?

Numbers are calculated against IRS-published 2025 and 2026 federal brackets, FICA wage bases, and state DOR-published rates. Edge cases not modeled: AMT (Alternative Minimum Tax), QBI deduction (Section 199A — can reduce SE income by up to 20%), local/city income tax (e.g., NYC adds 3-3.876%), self-employed retirement contributions (SEP-IRA, Solo 401k can dramatically reduce taxable income). For exact filing, use TurboTax Self-Employed, FreeTaxUSA, or a CPA.

What’s the QBI deduction?

Qualified Business Income deduction (Section 199A) lets pass-through entities — including sole proprietors filing Schedule C — deduct up to 20% of their qualified business income from federal taxable income. Subject to income limits and business-type restrictions. Not modeled here. If you qualify, your federal income tax could be substantially lower than this calculator shows.

Should I form an LLC or S-corp to reduce SE tax?

Possibly. An S-corp election lets you split income between ‘reasonable salary’ (subject to FICA) and distributions (not subject to SE tax). The savings depend on your income level — generally only worth it above $50-80k of net SE income. Talk to a CPA before electing — there are payroll, compliance, and reasonable-salary requirements that can offset the savings.

Two tools that simplify self-employment tax throughout the year: SmartCredit gives self-employed filers a real-time credit report so irregular income doesn't blindside your financial picture, and a mileage tracker captures the deduction most self-employed people undercount.

Creator Essentials

As an Amazon Associate and CJ Affiliate publisher, PayoutMath earns from qualifying purchases. Affiliate disclosure.

AMAZON Accounting software Self-employment tax is calculated on net profit. Accounting software that tracks expenses in real time means less end-of-year scramble. Check Price → AMAZON Receipt and tax organiser Physical organisation for receipts, mileage logs, and quarterly payment records. A simple system beats a shoebox at audit time. Check Price → AMAZON Self-employment tax guide Schedule C, SE, and quarterly estimated payments — the three forms every self-employed person files. A plain-English guide pays for itself. Check Price → AMAZON Home office essentials Home office expenses are deductible. Keeping a clear record of business-use equipment makes the deduction easy to claim. Check Price →

Recommended Tools

AMAZON Mileage tracker Business mileage is one of the most commonly missed self-employment deductions. An automatic tracker captures trips you'd otherwise forget. Check Price → AMAZON Freelance business guide Pricing, contracts, tax planning, and retirement accounts for the self-employed — the financial operating manual most freelancers never read. Check Price →