FICA & Self-Employment Tax Calculator

💼 FICA & Self-Employment Tax Calculator

What Is FICA and Self-Employment Tax?

If you're self-employed, a freelancer, or a small business owner, you’re responsible for paying your own Social Security and Medicare taxes . This is known as the self-employment tax, and it’s essentially both the employer and employee side of FICA taxes .

This calculator helps you quickly estimate how much you owe in FICA or self-employment tax based on your net income. Knowing your tax obligation can help you plan for quarterly payments, avoid surprises, and stay compliant with the IRS.

🧮 How to Use This Calculator

Enter the following details to estimate your self-employment tax:

1. Net Self-Employment Income – Your income after expenses (not your total revenue).

2. Tax Year – Choose the current tax year (rates can change annually).

3. (Optional) W-2 Income – If you also have a regular job, enter your W-2 income to calculate whether you've already paid part of your FICA taxes.

Then click “Calculate” to see:

• Total Self-Employment Tax (Social Security + Medicare)

• How much is deductible

• Breakdown of each tax component

💸 Breakdown of FICA & Self-Employment Tax

For self-employed individuals, the total self-employment tax is:

• 12.4% for Social Security

• 2.9% for Medicare

• + 0.9% Medicare surtax (on income over $200,000 for single filers / $250,000 for joint)

That’s a total of 15.3% on your net earnings, and possibly more if you're a high earner.

💡 Tip: You can deduct half of your self-employment tax when calculating your income taxes. This helps reduce your overall tax burden.

📊 Example Calculation

If your net self-employment income is $60,000 for the year:

• Social Security tax: 12.4% × $60,000 = $7,440

• Medicare tax: 2.9% × $60,000 = $1,740

• Total Self-Employment Tax: $9,180

• Deductible portion: $4,590

🧠 Why It’s Important

As a self-employed individual, you’re not just building a business—you’re also responsible for tax compliance. This calculator helps you:

• Plan quarterly tax payments

• Avoid underpayment penalties

• Understand how your income translates into tax obligations

• Estimate your real take-home pay

📘 Financial Tips for the Self-Employed

• Set Aside 25%–30% of Your Income: To cover federal income tax + self-employment tax.

• Make Quarterly Payments: The IRS expects quarterly estimated payments if you owe over $1,000/year in taxes.

• Track Business Expenses Carefully: More deductions = lower net income = less tax.

• Consider an S-Corp: At higher income levels, forming an S-Corp may reduce your self-employment tax burden.

• Keep Tax Deadlines in Mind: Missing deadlines can lead to interest and penalties.

❓ Frequently Asked Questions (FAQs)

1. What is the FICA tax cap?

For 2025, the Social Security portion of FICA only applies to the first $168,600 of earnings. Income above that is exempt from Social Security tax but still subject to Medicare.

2. Is self-employment tax separate from income tax?

Yes. Self-employment tax covers Social Security and Medicare. Income tax is separate and based on your taxable income after deductions .

3. Can I reduce my self-employment tax?

Yes—by deducting business expenses, setting up a retirement plan, or even changing your business structure (e.g., to an S-Corp). Talk to a tax advisor for custom strategies.

✅ Final Thoughts

Whether you're freelancing full time, running a side hustle, or growing your own business, understanding your tax obligations is non-negotiable . Use this FICA & Self-Employment Tax Calculator to stay on track, budget accurately, and file with confidence.

Don’t let tax season catch you off guard—plan ahead and keep more of what you earn.