How is self-employment tax calculated?

Self-employment tax is 15.3% on 92.35% of your net self-employment earnings: 12.4% for Social Security up to the annual wage base ($168,600 in 2024) and 2.9% for Medicare on all earnings. An extra 0.9% Medicare applies above $200,000.

What is the half-SE-tax deduction?

You may deduct one-half of your self-employment tax when figuring your adjusted gross income. This reduces the income subject to both federal and Louisiana state income tax, partially offsetting the SE tax cost.

Does Louisiana tax self-employment income?

Yes. Louisiana taxes net self-employment income as ordinary income using its graduated 2024 brackets (1.85%, 3.5%, 4.25%). The half-SE-tax deduction reduces the income base before the brackets are applied, the same as for federal tax.

The 7.65% reduction (leaving 92.35%) mirrors the employer share of FICA that a wage earner would not pay tax on. It puts the self-employed roughly on par with employees, who split Social Security and Medicare 50/50 with their employer.

Does this include federal income tax?

This tool computes federal self-employment tax and Louisiana state income tax. It does not compute your federal income tax, which depends on your full household income, deductions, and credits. Combine this with a federal income-tax estimate for your total bill.

Louisiana Self-Employment Tax Calculator

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Self-employed Louisianans owe two layers of tax on their profit: the federal self-employment tax that covers Social Security and Medicare, and Louisiana state income tax. This calculator computes both, including the deductible half of the SE tax that lowers your income-tax base.

How it works

Self-employment tax is figured on 92.35 percent of your net profit (the 7.65 percent reduction approximates the employer FICA share an employee would not be taxed on):

SE base    = net profit × 0.9235
SE tax     = 12.4% of SE base (up to $168,600) + 2.9% of SE base
half-SE    = SE tax ÷ 2   (deductible adjustment)

Louisiana income tax is then applied to your net profit minus the half-SE-tax deduction, using the 2024 graduated brackets (1.85% up to $12,500, 3.5% to $50,000, 4.25% above) and the combined personal exemption:

LA taxable = (net profit − half-SE) − combined exemption
LA tax     = brackets applied to LA taxable

The total shown is SE tax plus Louisiana state tax. Federal income tax is a separate calculation.

Example

A single freelancer with $80,000 net profit: SE base is $73,880, SE tax is about $11,303, and the deductible half is $5,651. Louisiana taxable income is $80,000 − $5,651 − $4,500 = $69,849, giving roughly $2,378 in Louisiana tax. The combined SE-plus-state total is about $13,681.

Notes

This tool models the 2024 figures; Louisiana moves to a flat 3% income tax for 2025. It does not compute your federal income tax, qualified business income (QBI) deduction, or estimated-tax penalties. Pay self-employment tax through quarterly estimated payments to avoid underpayment penalties. Confirm details on Schedule SE and Louisiana Form IT-540.