Self-Employed Income Calculator (USA)
Calculate your self-employed income after federal taxes and self-employment tax. Estimate your real take-home pay as a freelancer or business owner.
Calculate Self-Employed Income
How Much Do Self-Employed People Pay in Taxes in the USA?
Self-employed individuals in the United States typically pay more taxes than traditional employees because they are responsible for both the employee and employer portions of payroll taxes.
On average, freelancers and business owners take home 55% to 70% of their gross income after taxes and expenses.
What Is Self-Employed Income?
Self-employed income is money you earn by working for yourself rather than an employer. This includes freelancers, consultants, gig workers, and small business owners.
Taxes That Apply to Self-Employed Income
- Self-Employment Tax (15.3%) – Social Security + Medicare
- Federal Income Tax – based on tax brackets
- State Income Tax – varies by state
How Self-Employment Tax Works
Self-employment tax covers both sides of Social Security and Medicare, totaling 15.3% on net business income.
Self-Employed Income Examples
| Gross Income | Expenses | Estimated Take-Home |
|---|---|---|
| $60,000 | $10,000 | ~$36,000 |
| $90,000 | $15,000 | ~$54,000 |
| $120,000 | $20,000 | ~$72,000 |
How to Reduce Self-Employed Taxes Legally
- Track and deduct business expenses
- Contribute to retirement accounts (SEP IRA, Solo 401k)
- Deduct part of self-employment tax
- Use pre-tax health benefits
Frequently Asked Questions (FAQs)
What is self-employment tax in the USA?
Self-employment tax is 15.3% and covers Social Security and Medicare.
Do freelancers pay more tax than employees?
Yes. Freelancers pay both employee and employer payroll taxes.
Can I deduct business expenses?
Yes. Legitimate business expenses reduce taxable income.
Is self-employed income taxed monthly?
No. Taxes are usually paid quarterly as estimated taxes.
How do I estimate my monthly take-home income?
Divide your annual net income by 12 for a monthly estimate.
Related USA Salary Calculators
- Salary After Tax Calculator (USA)
- Gross to Net Salary Calculator (USA)
- Take-Home Pay Calculator (USA)
- Bonus Tax Calculator (USA)
Disclaimer
This calculator provides estimates only and does not constitute tax or legal advice.