Calculate your federal self-employment tax (Social Security + Medicare) and Virginia state income tax as a freelancer or sole proprietor. Enter your gross income and expenses below.
| Item | Amount |
|---|---|
| Gross Self-Employment Income | $0 |
| Business Expenses | $0 |
| Net Profit | $0 |
| Federal Self-Employment Tax (15.3%) | $0 |
| Virginia State Income Tax | $0 |
| Total Tax Estimate | $0 |
| Estimated Take Home | $0 |
Your federal self-employment tax covers Social Security (12.4%) and Medicare (2.9%) — the same taxes W-2 employees pay, but as a self-employed person you cover both the employee and employer portions. You can deduct half of this on your federal return.
Your Virginia state income tax is calculated on your net profit using VA's progressive rate structure (2%–5.75%). Virginia does not have a separate self-employment tax.
Answers to common questions about self-employment tax in Virginia
Self-employment tax is the combination of Social Security and Medicare taxes that self-employed individuals must pay on their net business income. Unlike traditional W-2 employees who split this cost with their employer (each paying 7.65%), freelancers, independent contractors, and sole proprietors in Virginia must pay the full 15.3% themselves — 12.4% for Social Security on earnings up to $184,500 and 2.9% for Medicare on all net earnings. The good news is that you can deduct half of this amount on your federal tax return, reducing your overall tax burden. This calculator helps Virginia freelancers understand exactly what they owe in federal SE tax and Virginia state income tax combined.
It's important to understand that your tax liability as a self-employed person in Virginia has two distinct components. The first is the federal self-employment tax (15.3% on net earnings), which funds Social Security and Medicare. The second is the Virginia state income tax, which is calculated based on your net profit using Virginia's progressive tax brackets (2%–5.75%). Unlike some states, Virginia does not have a separate self-employment or franchise tax — your business income is simply treated as ordinary income on your Virginia tax return. Additionally, Virginia does not allow a deduction for federal self-employment tax on your state return, but because Virginia starts with federal adjusted gross income (which already includes the SE tax deduction), you still benefit indirectly.
Virginia's tax system for self-employed individuals is relatively straightforward compared to other states. Your net self-employment income (gross income minus allowable business expenses) flows to your Virginia individual income tax return (Form 760) through your federal adjusted gross income. Virginia applies its standard four-bracket progressive rate structure to all income. One significant advantage for Virginia freelancers is that the state does not apply the federal self-employment tax, meaning your Virginia tax liability is limited to income tax only — no additional payroll-style taxes at the state level. Virginia also offers a standard deduction ($8,000 for single filers and married filing separately, $16,000 for married filing jointly) and personal exemptions that further reduce your taxable income.