Quarterly Estimated Tax for the Self-Employed
Self-employed income isn't taxed at the source, so the IRS expects quarterly estimated payments — miss them and penalties follow, even if you pay in full at filing time.
Self-employment tax = 92.35% of net earnings × (12.4% Social Security, up to the annual wage base, + 2.9% Medicare + 0.9% additional Medicare above $200k).
The safe-harbor rule
Paying at least the lesser of 90% of this year's tax or 100% (110% if income exceeds $150k) of last year's tax, spread evenly across the four quarters, protects you from an IRS underpayment penalty — even if your final bill ends up higher.
Common mistake: forgetting the SE tax deduction
Half of your self-employment tax is deductible from your income tax base (though not from SE tax itself) — a detail that's easy to miss when estimating by hand, and one reason many self-employed people underestimate what they'll actually owe.
Try Free Web Tools Mentioned in This Guide
Quarterly Tax Calculator
Estimate US self-employment quarterly tax payments so you're never caught by surprise.
Tax Set-Aside Calculator
Log each payment and instantly see how much to move to savings for taxes.
Freelance Rate Calculator
Work out the hourly or day rate you need to charge to hit your income goal.
Frequently Asked Questions
Is this official tax advice?↓
No — this is a planning estimate. Tax brackets, deductions and rules change yearly; confirm current figures with a tax professional or the IRS before filing.
What if I miss a quarterly deadline?↓
You may owe an underpayment penalty for that period, calculated based on how late and how much was underpaid — paying as soon as possible limits further accrual.