Can I deduct half of my self-employment tax?

Yes. The IRS allows you to deduct 50% of your self-employment tax from your gross income when calculating your adjusted gross income (AGI). This deduction is taken on Schedule 1 of Form 1040 and reduces your income tax, though not your SE tax itself. It effectively mirrors the employer deduction that salaried employees' employers receive.

What is the QBI deduction for self-employed people?

The Section 199A Qualified Business Income (QBI) deduction allows eligible self-employed individuals and pass-through entity owners to deduct up to 20% of their qualified business income, subject to income limits and other restrictions. For 2024, the deduction begins to phase out at $182,050 for single filers ($364,200 for joint filers). Certain service businesses (specified service trades or businesses, or SSTBs) face additional limitations above these thresholds. The deduction reduces your taxable income but has no effect on SE tax.

Self-Employment Tax Calculator 2024 — SE Tax & QBI Deduction US

Self-Employment Tax Calculator · USUS Tax

Example result based on the prefilled values.

SE Tax

$11,303.64

Deductible Half

$5,651.82

QBI Deduction (est.)

$14,869.64

Effective SE Rate

14.13%

Continue your plan

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When to use this calculator

Before accepting a pay change, bonus, pension contribution, or salary-sacrifice option.
When you want to compare employed, self-employed, or dividend-based income scenarios.
When you need a simple take-home estimate before running payroll or filing returns.
When you are approaching the £100,000 income level and want to understand the personal allowance taper effect.
When you are planning a salary sacrifice arrangement and need to see the net pay impact before agreeing terms.

A realistic US planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

Net Self-Employment Profit ($)

80000

After entering these figures, review se tax, deductible half and qbi deduction (est.) together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.

How to read your results

SE Tax

Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result or a recommendation to make a tax decision.

Deductible Half

Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.

QBI Deduction (est.)

Effective SE Rate

Method & assumptionsAuthoritative sources

This calculator estimates US self-employment tax for sole proprietors, single-member LLC owners, freelancers, and independent contractors. SE tax is computed on 92.35% of net profit — this adjustment accounts for the fact that employees do not pay FICA on the portion of wages equal to the employer's payroll tax contribution. For 2024, the Social Security component of 12.4% applies only to the first $168,600 of SE income; the Medicare component of 2.9% applies to all SE income with no ceiling. An additional 0.9% Medicare surtax applies above $200,000 for single filers but is not modelled here due to its dependence on total household income.

The deductible half of SE tax is the IRS's mechanism for giving self-employed individuals the same after-tax treatment as employees whose employers' FICA contributions are not included in employees' gross income. The QBI deduction estimate shown is based on 20% of net profit before the SE deduction, capped at 20% of adjusted income after the SE deduction, and does not account for the W-2 wage limitation or specified service trade restrictions that apply at higher income levels. Always use Schedule SE (Form 1040) and consult a CPA or tax professional for your final return.

Common mistakes

!Using an assumption that is not supported by a current local quote, bill, statement or official source.
!Treating a generic estimate as a lender, provider, payroll or tax authority decision.
!Mixing monthly and annual inputs without converting them consistently.
!Forgetting location-specific taxes, fees, eligibility rules or payroll deductions where they apply.
!Testing only one scenario instead of checking how a cautious assumption changes the result.

What to do next

Run a second scenario with a cautious assumption so you can see the downside clearly.
Compare the result with the related calculators below before making a decision.
Check current local rules, eligibility and provider terms before applying or committing money.
Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
Use the result to prepare better questions for a lender, provider, adviser or employer rather than treating it as a final answer.

Frequently asked

Self-employment (SE) tax covers Social Security (12.4%) and Medicare (2.9%) contributions that employees normally split with their employer. As a self-employed person you pay both halves, totalling 15.3% on 92.35% of your net self-employment income (the 92.35% factor accounts for the employer portion deduction). For 2024, Social Security tax only applies to the first $168,600 of SE income; Medicare applies to all SE income with an additional 0.9% on amounts above $200,000 ($250,000 for joint filers).

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