If you freelance, contract, or run your own business, you're on the hook for both halves of Social Security and Medicare.
15.3% total — 12.4% Social Security (up to the wage base) + 2.9% Medicare (uncapped), calculated on 92.35% of your net self-employment income.
You can deduct half of your self-employment tax from your gross income when calculating your federal income tax — this partially offsets the fact that employees don't pay tax on their employer's matching share.
Since no employer withholds tax for you, the IRS expects quarterly estimated payments if you'll owe $1,000 or more for the year. Due dates are typically mid-April, June, September, and January of the following year.
Calculate your self-employment tax.
Use the Self-Employment Tax Calculator →Business deductions can significantly reduce your net self-employment income before this tax applies. A CPA can help identify all eligible deductions.