Income & Filing
$
$
Home office, equipment, software, etc.
$
Additional taxable income (optional)
Deductions
$
Self-employed health ins. deduction
$
SEP-IRA (up to 25% of net / $69K)
Total Tax Owed
—
—
SE Tax
—
Social Security + Medicare
Income Tax
—
federal income tax
Effective Rate
—
of gross income
Quarterly Payment
—
due 4× per year
Take-Home Pay
—
after all taxes
Monthly Take-Home
—
average per month
Tax Breakdown
| Tax Category | Amount | Notes |
|---|
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How Self-Employment Tax Works
When you're self-employed, you pay both the employee and employer portions of Social Security and Medicare taxes — called self-employment (SE) tax. This is 15.3% on net self-employment income up to the Social Security wage base ($168,600 in 2025), then 2.9% Medicare on income above that.
💡 Key deductions: You can deduct 50% of SE tax from gross income when calculating income tax. You can also deduct 100% of self-employed health insurance premiums and retirement contributions (SEP-IRA, Solo 401k) — these deductions can significantly reduce your tax bill.
2025 Federal Income Tax Brackets (Single)
| Taxable Income | Tax Rate |
|---|---|
| $0 – $11,925 | 10% |
| $11,926 – $48,475 | 12% |
| $48,476 – $103,350 | 22% |
| $103,351 – $197,300 | 24% |
| $197,301 – $250,525 | 32% |
| $250,526 – $626,350 | 35% |
| Over $626,350 | 37% |
Frequently Asked Questions
When are quarterly estimated taxes due in 2025?
2025 quarterly estimated tax due dates: Q1 (Jan–Mar) → April 15, 2025 | Q2 (Apr–May) → June 16, 2025 | Q3 (Jun–Aug) → September 15, 2025 | Q4 (Sep–Dec) → January 15, 2026. If you expect to owe $1,000+ in taxes, you're generally required to make quarterly payments to avoid an underpayment penalty. Pay via IRS Direct Pay at irs.gov/directpay — it's free and instant.
What business expenses can I deduct?
Common self-employment deductions include: home office (regular, exclusive business use — either $5/sq ft simplified method or actual expense method), equipment and technology, software subscriptions, internet and phone (business portion), vehicle mileage (67 cents/mile in 2025 for business use), professional development and education, business travel, health insurance premiums, and retirement plan contributions. Keep receipts and business records for everything.
What is the QBI deduction for self-employed people?
The Qualified Business Income (QBI) deduction allows eligible self-employed individuals to deduct up to 20% of their qualified business income, further reducing taxable income. For 2025, the deduction begins to phase out for single filers with taxable income above $197,300 ($394,600 MFJ). Certain service businesses (doctors, lawyers, consultants) face additional limitations at higher income levels. This deduction is not included in our calculator — consult a tax professional to see if you qualify.
Should I form an S-Corp to save on SE tax?
S-Corp election can save on SE tax once your net self-employment income exceeds roughly $40,000–$50,000/year. As an S-Corp owner, you pay yourself a "reasonable salary" (subject to payroll taxes) and take additional profit as distributions (not subject to SE tax). On $100,000 profit, an S-Corp might save $5,000–$8,000/year in SE tax, but you'll incur payroll processing costs ($500–$2,000/year) and additional complexity. Generally worth considering above $80K–$100K net income.
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