Self-Employment Tax for Freelancers: The 15.3% You Need to Know

March 15, 2026 · 5 min read

When you go freelance, your tax burden increases significantly. As an employee, your employer pays half of Social Security and Medicare. As a freelancer, you pay both halves — 15.3%. Calculate yours with our Self-Employment Tax Calculator.

How It Works

On $80,000 net self-employment income: 92.35% is taxable ($73,880). Social Security: $73,880 × 12.4% = $9,161. Medicare: $73,880 × 2.9% = $2,142. Total SE tax: $11,303. The good news: you deduct half ($5,652) on your income tax return. Check your income tax and tax bracket to see the full picture.

How to Reduce Your SE Tax

Contribute to a Solo 401K (up to $69,000/year) or SEP-IRA (25% of net income). Max your HSA. Track business expenses carefully. Set your rates to account for the extra tax — our Freelance Rate Calculator factors this in.