How is Self-Employment tax calculated?
We calculate the full 15.3% Self-Employment tax (12.4% Social Security + 2.9% Medicare) applied to 92.35% of your net business profit, including the half-SE tax deduction on federal income tax.
Does this include state-specific income tax?
Yes! The calculator factors in effective state income tax rates based on your selected state and estimated earnings bracket.
Is this formal accounting or tax advice?
No. RealContractorPay provides educational estimates to help you evaluate job offers and contract rates. Always consult a certified CPA for personalized tax planning.