Self-Employment Tax Calculator
Calculate your SECA tax liability, federal income taxes, and net business profit. Includes the 50% above-the-line deduction.
Business Income & Expenses
Total payments received from clients or platforms before expenses.
Ordinary and necessary expenses: supplies, software, health insurance.
W-2 wages or spouse earnings that push you into higher tax brackets.
Effective Tax Rate: 27.10% on net earnings
1099 & SECA Tax Breakdown
- Gross 1099 / Business Revenue
- $90,000
- Deductible Business Expenses Mileage, software, equipment, home office
- -$15,000
- Net Taxable Profit (Schedule C) IRS applies SECA to 92.35% of this amount
- $75,000
- Self-Employment Tax (SECA 15.3%) SS: $8,589 • Medicare: $2,009
- -$10,597
- 50% SE Tax Deduction (AGI Benefit) Deducted above-the-line from federal tax
- $5,299
- Estimated Federal Income Tax Standard deduction subtracted
- -$6,504
- Estimated State Income Tax CA state tax estimate
- -$3,220
- Total Estimated Tax Obligation
- -$20,322
- Estimated Net Take-Home Profit
- $54,678
PayCalcly provides estimates for informational purposes only. Tax calculations may vary based on individual circumstances. This site is not affiliated with or endorsed by the IRS.
How It Works
Self-employment tax (SECA) covers Social Security (12.4%) and Medicare (2.9%) for independent contractors, freelancers, and sole proprietors. Under IRS Schedule SE, it applies to 92.35% of your net business profit (gross revenue minus valid business expenses). You also receive an above-the-line deduction for 50% of your self-employment tax when calculating your adjusted gross income for federal income tax.
Calculation Example
A freelancer with $80,000 in 1099 revenue and $10,000 in business expenses has a net profit of $70,000. The taxable amount for SECA is $70,000 x 92.35% = $64,645. Social Security tax (12.4%) is $8,016, and Medicare (2.9%) is $1,875, for a total self-employment tax of $9,891. When calculating income tax, half of that ($4,945.50) is deducted from income.
Frequently Asked Questions
For W-2 employees, the employer pays the other half (7.65%) of FICA taxes. Self-employed individuals are both the employer and the employee, so they are responsible for both shares.
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