Self-Employed Tax Deductions Calculator 2025

Key Takeaways

• The self-employed tax deduction calculator allows you to select your industry to see which tax write-offs are on the table for you.
• If your net earnings are more than $400, you’ll need to pay self-employment taxes.
• Claiming deductions can help you reduce your taxable income and save on taxes.

In recent years, there has been a shift toward self-employment, with a new generation finding success as online merchants, content creators, and influencers on platforms like TikTok, OnlyFans, and Instagram.

If you fall into this category of new entrepreneurs, you may be wondering, “Now that I’m making money from my self-employed business, how can I save money on my taxes?” and “What self-employed expenses can I deduct?”

To help you uncover tax write-offs specific to your business, we created a free, easy-to-use Self-Employed Tax Deductions Calculator that will help you uncover self-employed tax deductions to help you save on your taxes whether you are a dog walker or a content creator.

Our calculator allows you to select your specific self-employed industry (over 30) and discover what self-employed business tax write-offs and expenses you can deduct as a 1099 independent contractor or freelancer, so you don’t leave any money on the table.

Self-employment tax deduction calculator

Explore tailored tax write-offs with our self-employed tax deductions calculator. Ideal for contractors or content creators, it covers more than 30 industries and brings you one step closer to understanding self-employment deductions.

Select your business niche to discover your potential deductions, and ensure that as a 1099 independent contractor or freelancer, you maximize your write-offs and leave no money unclaimed. This is a great tool to help you save on taxes with a personalized approach to self-employed business expenses.

Do I need to pay self-employment taxes?

Generally, individuals who are self-employed, such as freelancers or those running their own businesses or side hustles are required to pay self-employment taxes if their net earnings from self-employment were $400 or more. The IRS requires these taxes to cover Social Security and Medicare contributions.

If you’re trying to understand and determine what taxes you owe, a self-employed tax calculator and the self-employed deduction calculator can be really valuable tools.

To work through some of the complexities of self-employment taxes, people often use tools like a self-employed calculator to make sure their calculations are accurate and maximize available deductions while filing taxes responsibly.

How much are self-employment taxes before deductions?

Handling self-employment taxes can feel like figuring out a puzzle of Social Security and Medicare contributions. Self-employment taxes cover Social Security and Medicare contributions for individuals who are self-employed. The tax amount can be a bit of a moving target, but tools like a self-employment tax calculator can give you a heads-up on what to expect.

The self-employment tax rate is 15.3%, where 12.4% is for Social Security and 2.9% is for Medicare. Additional Medicare taxes apply to self-employment income over:

• $125,000 for married, filing separately
• $250,000 for married, filing jointly
• $200,000 for everyone else

Now, here’s the cool part: deductions. Deductions — such as business supplies and the home office deduction for those operating their business from home — can play a crucial role in helping reduce both your taxable income and self-employment taxes.

Navigating the intricacies of filing self-employment taxes is simplified through resources like these to help you be more accurate in your calculations, make sure you’re not missing out on potential perks, and determine potential write-offs for the self-employed.

How do tax deductions lower self-employment taxes?

Utilizing deductions is an important but also necessary strategy for self-employed individuals to lower their taxable income. In simple terms, deductions reduce your overall income that can be taxed. From mileage and equipment to health insurance premiums, each deductible expense chips away at your taxable income. 

You might already be aware of deductions like business expenses or home office costs, but this tool helps you get even more granular with your daily business expenses.

By selecting your industry, you can identify deductions that apply to your niche that you might otherwise miss, like prizes for giveaways, app fees, and even the uniform you wear. Whether you are writer, realtor, or freelancer, this calculator helps you maximize deductions when filing self-employment taxes.

What are some common self-employment tax deductions?

Understanding where to start when it comes to self-employment taxes can feel like a big financial stressor, but deductions can take some of that weight off your shoulders.

• Home office: If your workspace at home is exclusively and regularly for your business, you can claim a portion of your rent (or mortgage interest, property taxes, and home owner’s insurance if you own your home), utilities, and maintenance costs.
• Vehicle expenses: If you use your car for business purposes, whether it’s meetings or client visits, you can take a standard mileage deduction for your business miles driven or a portion of the actual costs for using your vehicle. The standard mileage deduction for 2025 is 70 cents per mile.
• Health insurance: Health insurance premiums are pretty common as self-employed individuals can often deduct the cost of health insurance for themselves and their dependents. It’s important to note that your own health insurance premiums do not go on Schedule C and are not a deduction from your self-employment income. This means that although premiums do lower your overall taxable income, they will not reduce self-employment tax.
• Retirement contributions: Don’t forget retirement contributions–setting aside funds for the future not only secures your financial well-being but can also reduce your taxable income. Just like your personal health insurance, your retirement contributions won’t reduce self-employment tax.
• Travel expenses: For those who travel for their business, expenses related to business trips, such as accommodations and transportation, can also be deducted. Meals while traveling are generally 50% deductible.

Try to stay as organized as possible, keep consistent records, and hold onto all your receipts. You could also consider working with a tax expert to ensure you’re maximizing self-employment tax deductions. With a bit of strategic planning, you can take the confusion out of tax season while keeping more of your hard-earned money.

Self-employment tax deductions based on your career

Depending on what industry you work in or what type of gigs you do, there are some specific deductions you may qualify for.

Rideshare

Working as a rideshare driver for Uber or Lyft (and others) has tremendous tax advantages related to tax deductions for business use of your car, like the standard mileage deduction, which is 70 cents per business mile for 2025, but leveraging all deductions is key to maximizing your refund.

Common expenses that can be used as deductions include:

• Vehicle cleaning
• Passenger goodies
• Maintenance
• Parking and tolls

For tax years 2025 through 2029, you may also be able to deduct your tips. The OBBBA passed a new qualified tip income deduction into law, which allows you to write off as much as $25,000 in qualified tips.This deduction phases out at incomes above $150,000 ($300,000 if married filing jointly).

If you don’t claim the standard mileage deduction, you might be able to deduct other expenses from your income, lowering your taxes. Make sure to save all your receipts and track all expenses.

Review our guide on Tax Tips for Uber, Lyft and Other Car Sharing Drivers for more in-depth information.

Contractor

If you work as an independent contractor where your income is recorded on 1099’s, you have quite a few options when it comes to tax deductions. Common deductions include:

• Travel expenses
• Home office
• Supplies
• Advertising
• Professional fees
• Insurance

Here are some self-employment deductions that will lower your income tax (but not your self-employment tax:

• Retirement plan contributions (for yourself)
• Medical premiums (for yourself and family)

Real Estate Agent

As a real estate agent, writing off your related business expenses can make a significant difference in lowering your taxes. One of the biggest areas to consider is maximizing tax deductions for the business use of your car. Taking the standard mileage deduction is usually the best option, but for some, the actual cost method works in their favor when the mileage count is low.

In addition, gifts are given a lot in real estate, which also qualifies for a deduction. The IRS stipulates that no more than $25 per recipient can be deducted. Marketing expenses, such as advertising, will make an impact as well. 

Finally, it’s good to understand that commissions from sales are not tax-deductible unless you pay them to another agent on your team, but you can deduct broker fees.

Caregiver

If you are working as a caregiver, you are most likely driving from your home to another location to take care of someone, and the business use of your car can be one of your biggest expenses. You will either be able to take the standard mileage deduction (70 cents per business mile for 2025) or deduct your actual car expenses like gas, repairs, and maintenance based on your business use, whichever is more. 

Make sure you keep track of your mileage driven and your actual expenses so that you can deduct the maximum expenses you’re eligible for. Some other expenses you don’t want to forget are:

• Uniforms
• Personal protective equipment (PPE)
• Advertising
• Cleaning supplies

Sole Proprietor

Overall, as a sole proprietor business, be aware that self-employed tax deductions should be a priority. Some top-level categories of expenses to always track are:

• Supplies
• Home office
• Bank fees
• Business meals
• Internet
• Utilities
• Legal
• Professional services

In addition to expenses from your self-employed business, personal expenses like charitable deductions or mortgage interest can be deducted as itemized deductions on your personal taxes as well. If you’re considering claiming either of these write-offs, they were both impacted by the OBBBA.

The current mortgage interest deduction limits (up to $750,000 for loans taken out on or after December 16, 2017, or up to $1 million for loans taken out before December 16, 2017).

Get started planning for tax season with our Beginner’s Tax Guide for the Self-Employed.

Tutor

You may be wondering if tutoring makes you self-employed. It depends on whether you’re employed by a company as a tutor or if you started a tutoring business on your own with the intent to make money.

If you did start a tutoring business on your own with the intent to make a profit, you would be considered self-employed. When you’re self-employed, you’ll have to think about self-employment taxes if your net income is $400 or more, and you also may have to pay estimated taxes since you don’t have an employer to withhold taxes from your pay.

That said, there are so many expenses you can deduct related to your tutoring business to lower your taxes. If you are a tutor, keep track of your expenses, like:

• Advertising
• Supplies
• Home office
• Mileage to travel to tutor your clients

Consultant

Consultants have many options when it comes to tax deductions. When setting up your business, the upfront costs of furniture, communication equipment, and depreciating assets can all be deducted from taxes. Fees, rent, utility bills, printing costs, and website hosting are also examples of items you can deduct.

For additional information, read our in-depth Top Tax Deductions for Consultants article.

Artist

With significant costs for supplies, artists have an advantage in that nearly all their core tools are tax-deductible. All types of artists can qualify, including makeup artists. Framing, internet, promotions, gallery fees, film, and processing all count towards deductions. If you earn income through art, then you’re usually able to claim these deductions.

Additionally, the Qualified Business Income (QBI) Deduction allows self-employed and pass-through businesses to deduct an amount equal to up to 20% of their net income from their taxes.

Review our Musician’s Guide to Taxes: Top Tax Deductions for more in-depth information.

Airbnb

If you qualify, numerous deduction options can enhance the profitability for your Airbnb business. Options include expenses for the home or rental space, such as:

• Furniture
• Supplies
• Shared expenses
• Legal fees
• Repairs
• Property taxes

For maximum deductions, be sure to rent the property for at least 15 days of the year. For other tips, review our Does Renting My Apartment On AirBnB Make Me Self-Employed article.

Delivery

Common self-employment expenses for delivery drivers include:

• Phone bill
• Courier bags
• Parking
• Tolls
• Gas
• Car maintenance
• Vehicle mileage

Many types of drivers can qualify for these deductions, such as those who work for:

• Pizza businesses
• Uber
• Amazon
• Newspapers

There’s also a new qualified tip income deduction for tax years 2025 through 2028. With this write-off, you can now deduct qualified tips of up to $25,000. In order to deduct your tips, they must be reported to your employer and appear on your W-2 or 1099. If the tips aren’t recorded, they aren’t eligible for the deduction.

One of the most important topics to understand as a delivery driver first is whether or not you are an employee or an independent contractor receiving a W-2 or 1099 form. Additionally, as an independent contractor, you will need to pay quarterly estimated taxes. For more in-depth information, take a look at our article Filing Tax Return for Delivery Drivers: Tips and Advice.

Save on taxes and put more money back into growing your business

Don’t worry about knowing all of the self-employed business deductions related to your specific industry: a tax expert can help you maximize your deductions to save on your taxes.

No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund — guaranteed.