Self-employment tax catches many first-time business owners by surprise. Calculate your exact liability and what to set aside each quarter.
Self-employment tax is 15.3% on net self-employment income (12.4% Social Security + 2.9% Medicare). You pay both the employee and employer portions. The good news: you can deduct half of SE tax on your income tax return, reducing your overall tax bill.
💰 Your Business Income
$
$
$
Annual Self-Employment Tax
$0
Set aside $0/month · $0/quarter
SE Tax Owed
$0
15.3% of net SE income
SE Tax Deduction
$0
Half of SE tax (saves you money)
Estimated Income Tax
$0
Federal (estimate)
Total Tax Burden
$0
SE + income tax combined
Quarterly Estimated Payment Schedule
Q1 (Jan–Mar) — due April 15—
Q2 (Apr–May) — due June 15—
Q3 (Jun–Aug) — due Sept 15—
Q4 (Sep–Dec) — due Jan 15—
Total annual estimated tax—
File your taxes — and track quarterly
QuickBooks Self-Employed automatically tracks deductions and calculates quarterly payments throughout the year.
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Frequently Asked Questions
How much should self-employed people set aside for taxes? ▾
A safe rule of thumb is 25-30% of net profit for federal taxes (SE tax + income tax). If you're in a high-income bracket or live in a high-tax state, set aside 35-40%. Open a separate savings account specifically for taxes and transfer money there immediately when income arrives — treat it as an expense you've already paid. Many self-employed people get into trouble by spending money they owe in taxes.
What are the quarterly estimated tax deadlines? ▾
Q1 (Jan-Mar): due April 15. Q2 (Apr-May): due June 15. Q3 (Jun-Aug): due September 15. Q4 (Sep-Dec): due January 15 of the following year. If any date falls on a weekend or holiday, the deadline moves to the next business day. Missing deadlines incurs underpayment penalties (currently around 8% annually). You can avoid penalties by paying 100% of last year's tax liability in estimated payments (110% if income > $150k).
What business expenses can I deduct to lower SE tax? ▾
Legitimate business deductions reduce your net SE income, which reduces both SE tax and income tax. Common deductions: home office (dedicated workspace), vehicle mileage (67¢/mile in 2024), health insurance premiums, retirement contributions (SEP-IRA, Solo 401k — up to 25% of net income), equipment (Section 179), software subscriptions, professional development, and business meals (50%). Keep receipts and document the business purpose of every deduction.