Self-employment Tax Calculator
When you work for yourself, you're responsible for the Social Security and Medicare taxes an employer would normally withhold. This calculator helps you estimate your self-employment taxes for the year. It's built for freelancers, contractors and sole proprietors who want to plan ahead and set aside the right amount. Results are an estimate only, UMB is not a tax advisor, so consult your tax professional about your situation.
Frequently Asked Questions
Self-employment tax is the Social Security and Medicare tax paid by individuals who work for themselves. Because there's no employer withholding these taxes, self-employed individuals are generally responsible for both the employer and employee portions.
Generally, sole proprietors, freelancers, independent contractors and partners with net self-employment earnings above the IRS threshold are required to pay it. This calculator provides an estimate; UMB is not a tax advisor, so consult your tax professional about your specific situation.
Many self-employed individuals set aside a portion of income throughout the year and make quarterly estimated tax payments to avoid a large bill or penalties. A dedicated business savings account can help you reserve funds for taxes. Always consult a tax advisor for guidance.