Freelance Tax Deduction Calculator
This free freelance tax deduction calculator estimates your federal self-employment tax from your net freelance profit, shows the deductible half of that tax, and illustrates your effective tax rate. Enter your numbers below — everything recalculates instantly as you type.
Enter your numbers
Your Schedule C net profit: freelance revenue minus business expenses already accounted for.
Only expenses not already subtracted from your net profit above. These lower the earnings subject to SE tax.
Filing status does not change your self-employment tax. It affects your federal income tax (brackets and standard deduction), which this estimate does not include.
Your results
| Net earnings subject to SE tax | $100,000.00 |
|---|---|
| Effective SE tax rate (estimate) | 14.13% |
| Income-tax basis after SE deduction (estimate) | $92,935.22 |
| Expenses lowered your SE tax by | $0.00 |
Federal estimate only — no state or local taxes, and no federal income tax included. Not tax advice. Confirm your numbers with a CPA or tax professional.
How to use this calculator
Enter your annual net profit from freelancing — that is your Schedule C net profit, revenue minus the business expenses you have already accounted for. If you have deductible business expenses you have not subtracted yet, enter them in the additional deductible business expenses field and watch your self-employment tax shrink.
Pick your filing status to see the note on how it relates to this estimate. Filing status does not change self-employment tax, but it matters for the federal income tax this estimate leaves out. Everything updates instantly as you type, so you can model scenarios like a big equipment purchase or a higher-profit year.
How it works
The core formula is the IRS self-employment tax calculation: self-employment tax = net earnings × 0.9235 × 0.153. Only 92.35% of your net earnings are subject to the tax, and the 15.3% rate is the combined Social Security (12.4%) and Medicare (2.9%) rate — freelancers pay both the employee and employer halves. For example: $100,000 × 0.9235 × 0.153 = $14,129.55.
You may deduct one-half of your self-employment tax as an above-the-line deduction against your federal income tax: $14,129.55 ÷ 2 = $7,064.78. This deduction lowers your income tax, not your self-employment tax. The effective SE tax rate is simply self-employment tax divided by net profit (about 14.13% at $100,000 of profit).
What this estimate leaves out: federal income tax (which depends on your filing status, deductions, and bracket), state and local taxes, and the Social Security wage-base cap on the 12.4% portion, which changes each year. The "income-tax basis" row is profit minus the deductible half of SE tax — a simplified illustration of what remains before income tax, labeled as an estimate. Results are for planning only, not tax advice.
Frequently asked questions
What counts as net profit for self-employment tax?
Your net earnings from self-employment: freelance revenue minus ordinary and necessary business expenses such as software, equipment, internet and phone, home-office costs, professional insurance, and accounting fees. Enter your Schedule C net profit above. If you list extra deductible expenses separately, the calculator subtracts them from your profit before applying the tax math.
Why is the self-employment tax rate 15.3%?
The 15.3% combines the two halves of payroll tax: 12.4% for Social Security and 2.9% for Medicare. Employees split this with their employer, but freelancers pay both halves themselves. The 12.4% Social Security portion applies only up to the annual Social Security wage base, which changes each year, so this calculator applies the flat 15.3% as a simple estimate.
What is the 0.9235 factor in the formula?
Only 92.35% of your net earnings are subject to self-employment tax, mirroring how employer-paid payroll tax is excluded from an employee's taxable wages. The formula is: self-employment tax = net profit × 0.9235 × 0.153. For $100,000 of net profit: $100,000 × 0.9235 × 0.153 = $14,129.55.
Can I deduct half of my self-employment tax?
Yes. You may deduct one-half of your self-employment tax as an above-the-line deduction when figuring your federal income tax, with no itemizing required. On $100,000 of profit, the $14,129.55 of SE tax produces a $7,064.78 deduction. This deduction lowers your income tax, not your self-employment tax.
Does this calculator include income tax or state taxes?
No. This is a federal self-employment tax estimate only. It does not include federal income tax or any state or local taxes. Your actual income tax depends on your filing status, deductions, and tax bracket. Nothing on this page is tax advice — consult a CPA or tax professional for your situation.