How is self-employment tax calculated?

Self-employment tax is 15.3% — 12.4% for Social Security plus 2.9% for Medicare — applied to 92.35% of your net self-employment earnings. The Social Security portion stops at the annual wage base, while the Medicare portion has no cap. This replaces the FICA an employer and employee would split.

Can I deduct half of my self-employment tax?

Yes. You may deduct one-half of your self-employment tax when figuring your adjusted gross income, which lowers both your federal and New York income tax. The tool subtracts this deductible half before computing income tax on your earnings.

Does New York have its own self-employment tax?

No. New York does not levy a separate self-employment tax. Self-employed New Yorkers still owe the federal SE tax plus regular New York State income tax on their net earnings, which is exactly what this calculator combines into one estimate.

Do I need to pay quarterly estimated taxes?

Usually yes. Because no employer withholds tax from self-employment income, the IRS and New York expect quarterly estimated payments to cover SE tax and income tax. Dividing the total here by four gives a rough quarterly target, though safe-harbor rules can change it.

Does this include New York City tax?

No. This estimate covers federal SE tax, federal income tax and New York State income tax only. New York City residents owe an additional city income tax, and very high earners may owe the extra 0.9% Medicare surtax, neither of which is modelled here.

New York Self-Employment Tax Calculator

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The New York Self-Employment Tax Calculator estimates the full tax bill a freelancer, gig worker or sole proprietor in New York faces. Self-employment income is hit three times: by the federal self-employment (SE) tax that replaces an employer-employee FICA split, by federal income tax, and by New York State income tax. This tool stacks all three on your net earnings and applies the deductible half of SE tax so the result reflects what you would actually owe.

How it works

You enter your net self-employment income — profit after business expenses. SE tax is computed on 92.35% of that net (the 1 - 7.65% employer-share adjustment): 12.4% Social Security up to the annual wage base, plus 2.9% Medicare with no cap, for 15.3% combined. Half of that SE tax is then deductible, so it is subtracted before income tax is figured. Federal income tax applies the 2025 brackets to net - half SE tax - federal standard deduction. New York, which conforms to federal adjusted gross income, applies its 2024 brackets to the same earnings less the New York standard deduction. The three taxes are summed into your total bill.

Example and notes

On $60,000 of net self-employment income, the SE tax base is about $55,410, producing roughly $8,480 of SE tax; the deductible half (~$4,240) trims the income-tax base before federal and New York income tax are applied. Together these typically consume around a quarter to a third of net earnings. The estimate excludes New York City tax, the 0.9% additional Medicare surtax on high earners, and credits. Because no one withholds for you, plan on quarterly estimated payments. All math runs locally in your browser.