Self-Employment Tax Calculator
Estimate self-employment tax on your net profit.
Adjust to the current year
Results update as you type.
This calculator is for general guidance only and is not tax advice. Rules vary by jurisdiction and year; confirm with a qualified professional.
How it works
When you work for yourself, you owe self-employment tax to cover Social Security and Medicare — both the employee and employer shares that a regular job would split — and this calculator estimates it from your net profit. You enter your net self-employment profit and the Social Security wage base for the year, and it returns the total SE tax, the Social Security and Medicare portions, and the deductible half. The calculation first multiplies your net profit by 92.35 percent, which represents your net earnings from self-employment (the adjustment accounts for the employer-share deduction). That figure is then taxed at 12.4 percent for Social Security, but only up to the annual wage base, and at 2.9 percent for Medicare on the entire amount with no cap, for a combined 15.3 percent. Importantly, you can deduct half of your self-employment tax when figuring your income tax, which softens the burden. This tax is separate from and in addition to federal and state income tax, so freelancers and business owners should set aside money for both. Because you have no employer withholding, you typically pay via quarterly estimated taxes. This is an estimate; consult a tax professional for your situation. Enter your net profit to estimate your self-employment tax.
SE tax = (net profit × 0.9235) × 15.3% (Social Security capped at wage base)
Self-employment tax applies to 92.35 percent of net profit. That amount is taxed 12.4 percent for Social Security up to the annual wage base and 2.9 percent for Medicare with no cap, totaling 15.3 percent. Half of the resulting tax is deductible against your income tax.
Source:IRS Schedule SE (self-employment tax)
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter net self-employment profit.
- 2
Adjust the options
Adjust social security wage base if they apply — sensible defaults are already set.
- 3
Read your result
Self-employment tax updates instantly as you type — no button to press.
Frequently asked questions
What is self-employment tax?
Self-employment tax is the Social Security and Medicare tax paid by people who work for themselves. Employees split these taxes with their employer, but the self-employed pay both halves, totaling 15.3 percent on net earnings. It funds the same benefits, and it is separate from and in addition to federal and state income tax on your profit.
How is self-employment tax calculated?
Multiply your net profit by 92.35 percent to get net earnings, then apply 12.4 percent for Social Security up to the annual wage base and 2.9 percent for Medicare with no limit, a combined 15.3 percent. The calculator handles this and shows the two portions plus the deductible half, which reduces your income tax.
Why is only 92.35 percent of profit taxed?
The 92.35 percent factor adjusts your profit downward to mirror how employees are not taxed on the employer's share of payroll tax. It equals 100 percent minus half of the 15.3 percent rate, keeping the self-employed on roughly equal footing with employees. This adjustment is built into the standard IRS self-employment tax calculation.
Can I deduct self-employment tax?
Yes. You can deduct half of your self-employment tax when calculating your adjusted gross income, which lowers your income tax. This deduction reflects the employer-share portion and is available whether or not you itemize. It does not reduce the self-employment tax itself, but it meaningfully reduces the overall tax you owe on your earnings.
How do I pay self-employment tax?
Because no employer withholds taxes from your pay, the self-employed usually pay through quarterly estimated tax payments covering both self-employment tax and income tax. Setting aside a portion of each payment you receive, often 25 to 30 percent, helps ensure you can meet these obligations and avoid underpayment penalties at tax time.