Being self-employed means you’re responsible for handling your own taxes, including Social Security and Medicare contributions, collectively known as self-employment taxes. Unlike traditional employees, these taxes are not automatically deducted from your income, so understanding and planning for them is essential to avoid surprises during tax season.
Our Self-Employment Tax Calculator helps you estimate how much you owe based on your net earnings from self-employment. By entering your income details, this tool calculates the total self-employment tax, helping you plan your finances better and stay compliant with tax laws.
Self-employment tax is composed of both the employer and employee portions of Social Security and Medicare taxes, currently totaling 15.3%. This calculator also takes into account the IRS rules, such as deducting half of the self-employment tax when calculating your adjusted gross income, helping you understand your tax liability more clearly.
Whether you’re a freelancer, contractor, or small business owner, accurately estimating your self-employment taxes is crucial for budgeting and avoiding underpayment penalties. Our calculator simplifies this complex process, giving you confidence in your tax planning and helping you set aside the right amount throughout the year.
Use this tool to stay on top of your tax obligations, ensure compliance, and make informed decisions for your financial future. Remember, timely and accurate tax payments protect your business and personal finances from unexpected burdens.