How to use the self-employment tax calculator
- 1 Enter your net self-employment profit, which is income minus business expenses.
- 2 Enter any W-2 wages from a job, which use up part of the Social Security wage base.
- 3 Read your self-employment tax and the Social Security and Medicare parts.
- 4 Note the deductible half and the quarterly amount to set aside.
Worked example
$60,000 of net profit and no W-2 job. Net earnings are $60,000 × 92.35% = $55,410. Social Security is 12.4% of that ($6,870.84) and Medicare is 2.9% ($1,606.89), so self-employment tax is $8,477.73. Half of it, $4,238.87, is deducted on Form 1040, and setting aside about $2,119 a quarter covers it.
Paying tax when nobody withholds it
If you earn $400 or more of net self-employment income, you owe self-employment tax on top of income tax. It replaces the Social Security and Medicare that an employer would split with you, which is why the rate is the full 15.3%.
- Quarterly estimates: pay by April 15, June 15, September 15 and January 15 to avoid underpayment penalties. Paying at least 100% of last year's tax (110% if your income was over $150,000) is a common safe harbour.
- Deductions first: business expenses reduce net profit, which cuts both SE tax and income tax.
- Half is deductible: it lowers income tax, but not the SE tax itself.
Add income tax with the Federal Income Tax Calculator. A self-employed 401(k) or an HSA can cut your taxable income further.
Features
15.3% rate
12.4% Social Security plus 2.9% Medicare on 92.35% of net profit.
2026 wage base
Social Security stops at $184,500 of combined wages and self-employment earnings.
Half is deductible
Half of SE tax is an adjustment to income on Form 1040, which lowers income tax.
Quarterly estimate
A simple quarter of the yearly figure to plan estimated tax payments.
When to use it
New freelancers
See how much tax to keep from each client payment beyond income tax. Add income tax with the Federal Income Tax Calculator.
Side gigs
Work out SE tax on rideshare, delivery or online income alongside a salary. Plan a solo 401(k) with the 401(k) Calculator.
Pricing work
Set rates that cover the employer half of FICA that a job would pay for you. An HSA Calculator shows another way to cut tax.
Estimated payments
Plan the quarterly payments due in April, June, September and January. Compare with a salaried job using the Paycheck Calculator.
Related Tax tasks
Frequently asked questions
What is the self-employment tax rate?
15.3%: 12.4% for Social Security and 2.9% for Medicare. It is charged on 92.35% of net self-employment earnings.
Why 92.35%?
It mirrors the employer half of FICA. Employees do not pay tax on the 7.65% their employer pays, so self-employed people get the same reduction.
When do I owe it?
When net earnings from self-employment are $400 or more in a year. You report it on Schedule SE with your Form 1040.
Does my job affect it?
Yes. W-2 wages count toward the $184,500 Social Security wage base first, so a high salary reduces or removes the 12.4% part on your side income. Medicare has no cap.
Is there an additional Medicare tax?
Yes. A further 0.9% applies to combined wages and self-employment income over $200,000 single or $250,000 joint. It is not included here and is worked out on Form 8959.
Is this my total tax?
No. You also pay federal income tax on profit, and usually state tax. Use the federal income tax calculator for that part.
How do I pay it?
Through quarterly estimated tax payments with Form 1040-ES, due in April, June, September and January, then settle the balance on your return.
Can I lower my self-employment tax?
Yes, by claiming every legitimate business expense, which lowers net profit. Some owners also form an S corporation and pay themselves a reasonable salary, but that adds payroll costs and filing work, so get advice first.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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