Do I need to pay quarterly estimated taxes?

Generally yes if you expect to owe $1,000 or more for the year. Quarterly payments (April, June, September, January) should cover both SE tax and income tax; underpaying triggers IRS penalties. A common rule of thumb is setting aside 25%-30% of net income.

Self-Employment Tax Calculator

Q: How much is self-employment tax?

15.3% — 12.4% Social Security (on net earnings up to the $176,100 wage base for 2025) plus 2.9% Medicare (no cap). It applies to 92.35% of your net self-employment profit, and you deduct half of the SE tax from income before income tax.

Q: Why do self-employed people pay double FICA?

Employees split payroll tax with their employer (7.65% each). Self-employed workers are both employer and employee, so they pay both halves — the 15.3% SE tax. The employer-half deduction and the 92.35% adjustment partially offset this.

The 15.3% that surprises every new freelancer — computed correctly with the 92.35% adjustment, the wage-base cap, and the deductible half.

Self-employment tax owed

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Social Security portion

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Medicare portion

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Deductible half

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Suggested quarterly set-aside (SE only)

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How SE tax is computed

Taxable base = Net profit × 92.35%
SE tax = base × 12.4% (up to wage cap) + base × 2.9%
Deduction: half of SE tax reduces your taxable income

Worked example

Net freelance profit $70,000 (no W-2 wages):

Base: 70,000 × 0.9235 = $64,645 → Social Security 12.4% = $8,016 · Medicare 2.9% = $1,875

SE tax ≈ $9,891, of which $4,946 is deductible against income tax.

The freelancer's tax checklist

SE tax is only half the story — income tax stacks on top (estimate it with the income tax calculator, remembering the SE-tax deduction). Practical moves: pay quarterly estimates (due mid-April, June, September, and January) to avoid penalties — most freelancers set aside 25–30% of every payment; track every deductible expense since each dollar of expense saves both SE and income tax (often 30–40 cents combined); consider a Solo 401(k) or SEP-IRA, which shelters far more than employee plans; and at higher profits an S-corp election can trim SE tax on part of your income — worth professional advice once profit clears roughly $80–100k. If you also have W-2 wages, enter them above: they use up the Social Security cap first and can shrink the 12.4% portion.

Frequently asked questions

How much is self-employment tax?

15.3% (12.4% Social Security up to $176,100 for 2025 + 2.9% Medicare) on 92.35% of net profit, with half deductible.

Why do self-employed people pay double FICA?

You're both employer and employee, so you pay both 7.65% halves. The deduction and 92.35% adjustment soften it.

Do I need quarterly estimated taxes?

Yes if you'll owe $1,000+. Set aside 25–30% of net income and pay each quarter to avoid penalties.

Related calculators

Note: Uses 2025 figures (wage base $176,100); excludes the 0.9% additional Medicare tax nuances at high incomes and state taxes. Not tax advice — consult a professional. Figures: 2025 tax year. Last reviewed: July 2026.