Salary Slip Generator

1099 Self-Employment Tax Calculator

Estimate your self-employment (SE) tax liability for your 1099 income.

For Educational Purposes Only

This is a simplified calculator and does not account for all tax situations. The values are for the 2025 tax year. Consult a tax professional for advice.

This is your gross income from 1099 work minus your business expenses.

Navigating the World of 1099: The Self-Employment Tax Calculator

For freelancers, independent contractors, and small business owners, the freedom of being your own boss comes with a unique tax responsibility: the self-employment (SE) tax. Unlike traditional employees, self-employed individuals must pay the full contribution to Social Security and Medicare themselves. This 1099 Self-Employment Tax Calculator, part of the free tool suite from salary-slip-generator.com, is an essential resource that demystifies this obligation, helping you estimate how much you need to set aside for taxes.

This calculator breaks down the SE tax into its two core components: Social Security and Medicare. It also calculates the important deduction for one-half of your SE tax, which helps lower your overall income tax burden. By understanding these figures, you can avoid surprises at tax time, plan your quarterly estimated payments, and manage your business's cash flow with greater confidence. This tool is the first step toward mastering the financial side of self-employment.

Why is Calculating Self-Employment Tax Crucial?

  • Avoiding Tax Debt: The number one reason to calculate SE tax is to know how much to save. Failing to set aside enough money can lead to a large, unexpected tax bill and potential penalties.
  • Quarterly Estimated Payments: The IRS requires self-employed individuals to pay taxes throughout the year in quarterly installments. This calculator helps you estimate the amount for those payments.
  • Accurate Budgeting: Knowing your SE tax liability allows you to create a more accurate business and personal budget. You'll have a clearer picture of your true net earnings.
  • Understanding Your Taxable Income: This tool shows you the deductible portion of your SE tax, a key adjustment that lowers your Adjusted Gross Income (AGI) and, consequently, your income tax.

How to Use the 1099 Self-Employment Tax Calculator

Our calculator simplifies the SE tax formula for you.

  1. Enter Your Net Earnings: Input your total self-employment income for the year *after* you have subtracted all your ordinary and necessary business expenses.
  2. Calculate SE Tax: Click the button to see a detailed estimate. The calculator will show your net earnings subject to SE tax, the breakdown of Social Security and Medicare taxes, the total SE tax due, and the portion you can deduct on your income tax return.

Frequently Asked Questions (FAQ)