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Self-Employment Tax Calculator

Updated Jan 09, 2024

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Part of running a successful one-person business includes optimizing your tax situation. Tax liabilities for self-employed individuals are much different from those for employees. Use this calculator to estimate your self-employment tax obligations.

Key terms for the self-employment tax calculator

Net farm income or loss

This represents the net income or loss from farming activities, including the profit or loss reported on Schedule F and any income from farm partnerships.

Net business income or loss

This is the net income from businesses and partnerships, reported on IRS Schedule C for sole proprietorships and Schedule K-1 for partnerships. Exclude income from farm partnerships, as it should be included in the net farm income or loss.

Church employee income

If your church employee income exceeds $108.28, self-employment taxes are applicable. This excludes income received as a minister, which should be reported separately.

Employer paid income

Enter total wages and tips with Social Security deductions. In 2023, income up to $160,200 is subject to the 12.4% Social Security tax for self-employment. If total wages exceed $160,200, no additional Social Security taxes are owed for the year.

Net church employee income

This is the total church income subject to self-employment taxes. It is calculated by multiplying church employee income by 92.35%. If the amount is less than $100, no self-employment taxes are owed on this income.

Self-employment income

This is the total income subject to self-employment taxes. It is calculated by multiplying net farm income or loss and net business income or loss by 92.35%. If the result is under $400, no self-employment tax is owed on this income.

What are self-employment taxes?

Self-employment taxes are designed for self-employed individuals to contribute to Social Security and Medicare. While employees normally have these taxes withheld from their paychecks automatically, self-employed people are responsible for estimating and paying their tax obligations quarterly.

What are some tax deductions for self-employed individuals?

Self-employed individuals can claim a number of small business deductions to reduce tax liabilities. These include the home office deduction, business vehicles, health insurance premiums, retirement contributions, professional fees, education and advertising. Business-related travel, meals and entertainment are also tax-deductible. Be sure to consult a tax professional for a more accurate assessment of your eligibility for certain deductions.

Mike Berner
Mike Berner
Staff Writer at businessnewsdaily.com
Mike Berner is a finance expert who spent more than half a decade serving as an economic analyst for the U.S. Army Corps of Engineers. He is experienced in conducting quantitative analysis and research to guide clients and companies through changes in the financial markets. With a bachelor's degree in economics and a bachelor of business administration in finance, Mike is adept at breaking down the complex financial topics that affect business owners, from business loans and accounting to payroll and credit card processing. He also tests and analyzes the latest financial software solutions and enjoys giving tips on matters ranging from tax forms to sales strategies to investing through platforms like YouTube, TikTok and Substack.
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