Free Tool · Tax Management
Self-Employment Tax Calculator
As a 1099 gig worker, you owe 15.3% SE tax on top of income tax — but you also get to deduct half. Enter your net self-employment income to see the exact breakdown.
Net income = gross gig earnings minus deductible business expenses (mileage, supplies, phone, etc.)
What is self-employment tax?
When you work as a W-2 employee, your employer pays half of your Social Security and Medicare taxes (7.65%) and you pay the other half. When you work as a 1099 contractor or gig worker, you are both the employee and employer — so you owe the full 15.3%: 12.4% for Social Security (on the first $168,600 of net earnings) and 2.9% for Medicare (on all net earnings).
The IRS applies this rate to 92.35% of your net self-employment income (not 100%), which roughly accounts for the employer portion you would have been exempt from as a W-2 employee.
The deductible half: your biggest SE tax benefit
You can deduct 50% of your SE tax from your gross income on Schedule 1. This deduction reduces your adjusted gross income (AGI), which lowers your regular income tax. For a gig worker earning $45,000 net, the deductible half is roughly $3,180 — real money back in your pocket at tax time.
Quarterly estimated tax payments
Because no employer withholds taxes from your gig earnings, you must pay estimated taxes four times per year. The IRS safe-harbor threshold: pay at least 100% of last year's total tax liability (110% if your prior-year AGI was above $150,000) to avoid underpayment penalties.
Due dates: April 15 · June 15 · September 15 · January 15.
Frequently Asked Questions
What is self-employment tax?
Self-employment (SE) tax is the Social Security and Medicare tax paid by people who work for themselves. As a 1099 worker or gig worker, you owe both the employee portion (7.65%) and the employer portion (7.65%) — totaling 15.3% on net self-employment earnings up to the Social Security wage base.
Why is SE tax calculated on 92.35% of net income instead of 100%?
The IRS allows you to multiply net self-employment income by 0.9235 before applying the 15.3% rate. This mimics the employer deduction that W-2 workers receive — employers pay half the FICA tax and don't include it in the employee's gross wages. You effectively reduce your taxable SE earnings by 7.65%.
Can I deduct half of my SE tax?
Yes. You can deduct 50% of your SE tax from your gross income on Schedule 1 of Form 1040. This deduction reduces your adjusted gross income (AGI) but not your self-employment tax itself. It applies regardless of whether you itemize or take the standard deduction.
Do gig workers like DoorDash or Uber drivers pay SE tax?
Yes. Any worker who receives a 1099-NEC or 1099-K and has net self-employment income of $400 or more must pay SE tax. This includes DoorDash, Uber, Lyft, Instacart, TaskRabbit, Fiverr, and all other gig platforms.
How do I pay SE tax throughout the year?
SE tax is paid through quarterly estimated tax payments — due April 15, June 15, September 15, and January 15. The IRS safe-harbor rule says you avoid underpayment penalties if you pay 100% of last year's tax liability (110% if your prior-year AGI exceeded $150,000) or 90% of the current year's actual tax.
What is the Social Security wage base for 2025?
The Social Security wage base for 2025 is $176,100. Only net SE earnings up to this amount are subject to the 12.4% Social Security portion of SE tax. All net SE earnings are subject to the 2.9% Medicare portion — and an additional 0.9% Additional Medicare Tax applies above $200,000 (single filers).
Stop guessing on quarterly taxes
UnifyOne tracks your gig earnings year-round, estimates your SE tax in real time, and sends quarterly payment reminders before each IRS due date. Free to start.
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