Calculate your self-employment tax, quarterly estimated payments, and total tax bill as a freelancer, contractor, or small business owner.
Self-employment tax covers Social Security (12.4%) and Medicare (2.9%), totaling 15.3%. As an employee, your employer pays half of this. As a self-employed person, you pay the full 15.3% — though you can deduct half of it from your taxable income.
If you expect to owe more than $1,000 in taxes, the IRS requires quarterly estimated payments. Missing these payments results in underpayment penalties. Payment due dates are April 15, June 15, September 15, and January 15.