You’ll need to pay self-employment tax if you make more than $400 in self-employment income. Our self-employment tax calculator helps you estimate how much self-employment tax you need to pay. To use it, figure out your net self-employment income. 

Net self-employment income is your total self-employment earnings minus business expenses and deductions. Simply put, it’s: 

Net self-employment income = 

Self-employed revenue - business expenses

What is self-employment income? 

Self-employment income or revenue is money you make from working for yourself rather than an employer. This includes freelance work, independent contracting, side hustle earnings, and gig economy income. 

Any income where taxes aren't automatically withheld and you receive 1099 forms instead of W-2 forms typically counts as self-employment income. 

Self-employment tax rates

The self-employment tax rate is 15.3%. It’s made up of these two rates:

• Social Security tax rate: 12.4%
• Medicare tax: 2.9%

Note that Social Security tax only applies to the first $168,600 (2024) and $176,100 (2025) in self-employment income. For earnings above $200,000 for single filers and $250,000 for joining filers, you’ll pay the Additional Medicare Tax of 0.9%. 

Unlike W-2 employees, self-employed individuals pay the employer and employee portions of these taxes. However, you can deduct half of your self-employment tax when calculating your income tax.

When are quarterly estimated taxes due?

You must make quarterly tax payments if you expect to owe $1,000 or more in taxes for the year. Estimated self-employment taxes are due quarterly on the following days: 

• April 15: 1Q income earned from January to March
• June 15: 2Q income earned from April through May 
• September 15: 3Q income earned from June through August 
• January 15: 4Q income earned from September through December

You can make payments for free online via the IRS Direct Pay. To avoid penalties, pay on time and at least 90% of the tax you owe. 

1099 vs. W-2 income

W-2 employees have taxes withheld and receive benefits, while 1099 contractors manage their taxes and deductions. 1099 workers must pay quarterly taxes and can deduct business expenses. 

Employees have their taxes automatically deducted, and the employer pays half the Social Security and Medicare taxes. Meanwhile, self-employed individuals must pay the full Social Security and Medicare tax (15.3%). However, 1099 contractors have more deduction opportunities. 

Tax deductions for self-employed individuals

Lower your self-employed tax bill with deductions for business expenses, home office, vehicle use, health insurance, and retirement contributions. 

For example, some other common self-employed deductions include office supplies, software subscriptions, marketing expenses, and half your self-employment tax. 

Track your expenses throughout the year by using accounting software built for self-employed individuals like QuickBooks Solopreneur. 

Disclaimers

*QuickBooks Live Tax, powered by TurboTax, is an integrated service available with a QuickBooks Online subscription. Additional terms, conditions and limitations apply. Pay when you file.

Terms and conditions, features, support, pricing, and service options subject to change without notice.