Step 2 of 5 — Estimate self-employment tax
Calculate your self-employment taxes, quarterly estimated payments, and net income.
Deductible expenses
SEP-IRA, Solo 401k
100% deductible for self-employed
Effective rate: 18.1%
Due Apr 15, Jun 15, Sep 15, Jan 15
| Gross Income | $90,000 |
| Business Expenses | $10,000 |
| Net SE Income | $80,000 |
| Self-Employment Tax (15.3%) | $11,304 |
| Federal Income Tax | $4,963 |
| State Income Tax | $0 |
| Total Tax Burden | $16,267 |
| Effective Tax Rate | 18.1% |
| Net Income | $63,733 |
| Quarterly Estimated Tax | $4,067 |
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Compare structuresSE Tax = Net Income × 92.35% × 15.3%
Taxable Income = Net Income − ½SE Tax − Retirement − Health Insurance − Standard Deduction
Quarterly Estimate = Total Annual Tax ÷ 4
Self-employment tax is 15.3% on net self-employment income (up to SS wage base of $176,100 for 2025). This covers Social Security (12.4%) and Medicare (2.9%).
Estimate full-year income. Calculate income tax + SE tax. Divide by 4. Due dates: April 15, June 15, September 15, January 15. Underpay penalty if under 90% of liability.
Yes — deduct 50% of SE tax on Schedule 1. Lowers your AGI (not just taxable income). On $50K net SE income: $7,065 SE tax, $3,532 deduction.
All legitimate business deductions reduce net SE income: home office, vehicle, equipment, software, professional development, health insurance premiums, retirement contributions.
Self-employed can deduct 100% of health insurance premiums (for themselves and family) as an above-the-line deduction — reduces both income tax and SE tax base.
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.