Self-Employment Tax Calculator
Estimate your self-employment tax for Social Security and Medicare from your net profit, with the half you can deduct and a quarterly amount.
Results
| Item | Value |
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Quick Answer
Self-employment tax is 15.3% of 92.35% of your net profit: 12.4% for Social Security, up to the wage base ($184,500 in 2026), plus 2.9% for Medicare. On $60,000 of profit, the SE tax is about $8,477.73, and you can deduct half, $4,238.86, from your income for income tax.
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Table of Contents
- Self-Employment Tax Calculator
- Quick Answer
- Related Calculators
- How This Self-Employment Tax Calculator Works
- How to Use the Self-Employment Tax Calculator
- Core Formulas
- Key Terms
- Worked Example
- Real-Life Examples
- Self-Employment Tax vs Income Tax
- SE Tax at Common Profit Levels (2026)
- What Changes Your SE Tax
- Common Mistakes to Avoid
- Frequently Asked Questions
- References & Sources
How This Self-Employment Tax Calculator Works
Enter your net profit from self-employment, which is your business income minus business expenses, usually from Schedule C. The calculator follows Schedule SE: it takes 92.35% of your profit, applies the Social Security and Medicare rates, and caps the Social Security part at the wage base for the year. If you also had a job, enter your W-2 wages, because they use up part of the Social Security wage base first.
Quick explanation: employees split 15.3% with their employer. When you work for yourself, you pay both halves.
- Social Security: 12.4%, up to the wage base.
- Medicare: 2.9% on all net earnings.
- Deduction: half of the SE tax lowers your income for income tax.
How to Use the Self-Employment Tax Calculator
- Enter your net profit: business income minus business expenses.
- Choose the tax year.
- Choose your filing status.
- If you also had a job, enter your W-2 wages.
- Press Calculate and read the SE tax, the deductible half and the quarterly amount.
Core Formulas
- Net earnings: net profit × 0.9235
- Social Security: 12.4% × the smaller of net earnings and (wage base − W-2 wages)
- Medicare: 2.9% × net earnings
- SE tax: Social Security + Medicare
- Deduction: SE tax ÷ 2
No SE tax is due if net earnings are under $400. The 92.35% step gives you the same treatment as an employee, whose employer’s half of the tax is not counted as pay.
Key Terms
- Net profit: business income minus business expenses, usually from Schedule C.
- Net earnings from self-employment: 92.35% of net profit, the amount SE tax is charged on.
- Wage base: the most earnings that Social Security tax applies to in a year.
- Schedule SE: the IRS form used to work out self-employment tax.
- Estimated tax: tax paid in four installments during the year when no employer withholds it.
Worked Example
A freelancer has $60,000 of net profit in 2026 and no other job.
- Net earnings = $60,000 × 0.9235 = $55,410.00
- Social Security = $55,410.00 × 12.4% = $6,870.84
- Medicare = $55,410.00 × 2.9% = $1,606.89
- SE tax = $8,477.73, and the deductible half is about $4,238.86
Real-Life Examples
- A rideshare driver: $30,000 of profit after mileage gives SE tax of about $4,238.86.
- A side business: with a $150,000 job and $80,000 of side profit, only $34,500 of wage base is left in 2026, so the SE tax is about $6,420.52, not $11,303.64.
- A high earner: on $250,000 of profit, filing single, the SE tax is about $29,573.38, plus an Additional Medicare Tax of about $277.88.
- Quarterly payments: with $60,000 of profit, set aside about $2,119.43 a quarter for SE tax, plus income tax.
Self-Employment Tax vs Income Tax
- Self-employment tax: pays for Social Security and Medicare. It is a flat rate, starting from the first dollar over $400 of net earnings.
- Income tax: uses brackets, after the standard deduction and other deductions.
- Both are due: self-employed people usually owe both, on the same profit.
- How they connect: half of the SE tax is deducted when working out income tax.
SE Tax at Common Profit Levels (2026)
Above about $199,800 of profit in 2026, the Social Security part stops growing.
| Net profit | Net earnings | SE tax | Deductible half |
|---|---|---|---|
| $10,000 | $9,235.00 | $1,412.96 | $706.48 |
| $25,000 | $23,087.50 | $3,532.39 | $1,766.19 |
| $50,000 | $46,175.00 | $7,064.77 | $3,532.39 |
| $75,000 | $69,262.50 | $10,597.16 | $5,298.58 |
| $100,000 | $92,350.00 | $14,129.55 | $7,064.77 |
| $150,000 | $138,525.00 | $21,194.32 | $10,597.16 |
| $200,000 | $184,700.00 | $28,234.30 | $14,117.15 |
What Changes Your SE Tax
- Business expenses: every deductible expense lowers net profit and the SE tax.
- The wage base: above it, only the 2.9% Medicare part continues.
- A W-2 job: wages already taxed for Social Security reduce the room left under the wage base.
- High income: above $200,000 single or $250,000 joint, a 0.9% Additional Medicare Tax applies.
Common Mistakes to Avoid
- Using gross income. SE tax is based on net profit after business expenses.
- Skipping the 92.35% step. Multiplying the full profit by 15.3% overstates the tax.
- Forgetting W-2 wages. They count toward the Social Security wage base.
- Not paying quarterly. If you expect to owe $1,000 or more, the IRS expects estimated payments.
- Forgetting the deduction. Half of the SE tax lowers your adjusted gross income.
Frequently Asked Questions
15.3% on net earnings: 12.4% for Social Security up to $184,500, and 2.9% for Medicare with no limit.
Anyone with $400 or more of net earnings from self-employment, including freelancers, contractors, gig workers and most sole proprietors.
Yes, if it is self-employment income. Report it on Schedule C, subtract expenses, and SE tax applies to the profit.
Half of it is. The deduction goes on Schedule 1 and lowers your income for income tax, but not your SE tax.
It removes the employer-equivalent half of the tax (7.65%), so you are treated like an employee whose employer’s share is not counted as pay.
No. SE tax only covers Social Security and Medicare. Income tax is separate.
$192,300, according to the Social Security Administration.
A single-member LLC is taxed like a sole proprietor by default. Some owners choose S corporation tax status and pay part of their income as salary, which needs professional advice.
Through quarterly estimated payments during the year, then on your Form 1040 with Schedule SE.
No. With a net loss or net earnings under $400, no SE tax is due.
Yes. 0.9% applies to combined wages and SE earnings over $200,000 single, $250,000 joint or $125,000 married filing separately.
Your W-2 wages use up the Social Security wage base first. Enter them so the calculator caps the 12.4% part correctly.
References & Sources
| Source | Used For | Link |
|---|---|---|
| IRS, Self-employment tax (Social Security and Medicare taxes) | Rates, who must pay and the deduction. | https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes |
| Social Security Administration, Contribution and benefit base | Wage base for each year. | https://www.ssa.gov/oact/cola/cbb.html |
| IRS, About Schedule SE (Form 1040) | The form and instructions. | https://www.irs.gov/forms-pubs/about-schedule-se-form-1040 |