Self-Employment Tax Calculator
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Your details
Net profit after business expenses
Applies 2025 rates: 15.3% on 92.35% of net earnings, Social Security capped at $184,500.
Self-employment tax owed
$11,304
Effective rate 14.1% of net income
Social Security (12.4%)
$9,161
Medicare (2.9%)
$2,143
Deductible half
$5,652
SE tax breakdown
Federal SE tax only — income tax is separate. Set aside funds for quarterly estimated payments.
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If you're self-employed, a freelancer or a 1099 contractor, you owe self-employment tax on top of income tax — covering both the employee and employer halves of Social Security and Medicare. This calculator estimates your SE tax from your net self-employment income, including the deductible portion you can write off. Enter your net earnings to see your Social Security tax, Medicare tax, total SE tax and the deduction, so there are no surprises at tax time.
How to use the Self-Employment Tax Calculator
- 1Enter your net self-employment income (after business expenses).
- 2The calculator applies the 92.35% net earnings adjustment.
- 3Social Security tax (12.4%) is applied up to the annual wage cap.
- 4Medicare tax (2.9%) is applied to all net earnings.
- 5Review your total SE tax and the deductible half.
What is Self-Employment Tax?
Self-employment tax is how people who work for themselves pay into Social Security and Medicare. When you're an employee, you and your employer each pay half of these payroll taxes — 7.65% each, for 15.3% total. When you're self-employed, you are both the employer and the employee, so you owe the full 15.3% yourself. This is separate from, and in addition to, federal and state income tax.
The tax has two components. The Social Security portion is 12.4% and applies only up to an annual wage base limit (which rises each year); earnings above that cap aren't subject to Social Security tax. The Medicare portion is 2.9% and applies to all of your net earnings with no cap, plus an additional 0.9% Medicare surtax on high earners above certain thresholds.
A detail that trips people up is that SE tax isn't calculated on your full net profit. You first multiply your net self-employment earnings by 92.35% — this adjustment exists because employees don't pay payroll tax on the employer's half, so the law mirrors that treatment. The 15.3% rate is then applied to this adjusted figure, which slightly reduces the tax compared with applying it to your raw profit.
There's a valuable offset: you can deduct half of your self-employment tax when calculating your income tax. This deduction reflects the employer-half portion and reduces your adjusted gross income, lowering your income tax bill (though not the SE tax itself). It's an above-the-line deduction, so you get it whether or not you itemize.
Because no employer withholds these taxes for you, the self-employed generally must make quarterly estimated tax payments to the IRS covering both income tax and SE tax. Underpaying can trigger penalties, so it's wise to set aside roughly 25–35% of net income for taxes, depending on your bracket. This calculator estimates the SE-tax piece so you can plan your set-aside and quarterly payments. It covers federal SE tax only — your total tax bill also includes federal and state income tax, which depend on your full situation. Consult a tax professional for precise figures.
The formula
Net earnings subject to SE tax = net profit × 0.9235 Social Security tax = min(net earnings, wage cap) × 12.4% Medicare tax = net earnings × 2.9% Total SE tax = Social Security + Medicare Deductible portion = Total SE tax × 50%
Frequently Asked Questions
What is the self-employment tax rate?+
The self-employment tax rate is 15.3% — 12.4% for Social Security (up to an annual wage cap) and 2.9% for Medicare (no cap). It covers both the employee and employer shares of payroll tax that a self-employed person owes.
Is self-employment tax on top of income tax?+
Yes. SE tax funds Social Security and Medicare and is separate from federal and state income tax. As a self-employed person you typically owe both, which is why setting aside a meaningful share of income for taxes is important.
Why is SE tax calculated on 92.35% of income?+
You multiply net profit by 92.35% before applying the 15.3% rate. This adjustment mirrors the fact that employees don't pay payroll tax on the employer's half, so the self-employed get equivalent treatment.
Can I deduct self-employment tax?+
You can deduct half of your self-employment tax when figuring your income tax. It's an above-the-line deduction that lowers your adjusted gross income, available whether or not you itemize, though it doesn't reduce the SE tax itself.
This calculator is for informational and educational purposes only. Results are estimates and should not be considered financial advice. Always consult a qualified financial professional before making financial decisions.
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