— Tax, VAT & Sales
Self-employment Tax Calculator
Calculate self-employment tax for Social Security and Medicare. Enter net self-employment income to see total SE tax, the Social Security and Medicare portions, and the half that can be deducted against income tax.
Self-employment tax
$14,129.55
- Social Security (12.4%)
- $11,451.40
- Medicare (2.9%)
- $2,678.15
- Deductible half
- $7,064.78
- Net earnings (92.35% of net)
- $92,350
— How it works
SE tax = 15.3% of net earnings, where net earnings = net SE income × 92.35%. That is 12.4% Social Security (up to the wage base) + 2.9% Medicare (no cap), with an extra 0.9% Medicare above a threshold. Half the SE tax is deductible against income tax.
Why the self-employed pay more
An employee and their employer each pay 7.65% of wages toward Social Security and Medicare — 15.3% in total, but the worker only sees their half. When you are self-employed you are both employer and employee, so you pay the full 15.3% yourself: that is the self-employment tax. It sits on top of your income tax and catches many first-time freelancers by surprise. It applies to 92.35% of your net profit (the calculator shows this adjustment), and the 15.3% splits into 12.4% for Social Security and 2.9% for Medicare.
Worked example — $100,000 of net self-employment income, 2025: Net earnings = $100,000 × 92.35% = $92,350. SE tax = 12.4% ($11,451) + 2.9% ($2,678) = $14,130 — and half of that, ~$7,065, is deductible against your income tax.
The deductible half, and the 92.35% twist
Two adjustments soften the blow. First, SE tax is charged on 92.35% of net profit, not 100% — the 7.65% reduction mirrors the employer-side tax an employee never has deducted from their own taxable wages. Second, you deduct half of the SE tax (the employer-equivalent share) against your income tax as an above-the-line adjustment, which lowers your income-tax bill (though not the SE tax itself). Neither makes the SE tax small, but both are easy to forget — and the deductible half in particular is money left on the table if missed.
The wage base, W-2 wages and extra Medicare
The 12.4% Social Security portion only applies up to an annual wage base (\$176,100 for 2025); earnings above it escape the Social Security tax, though the 2.9% Medicare keeps going with no cap. If you also have a W-2 job, those wages use the wage base first — so enter them and the calculator reduces the SE income still subject to the 12.4%, which can save a lot at higher incomes. Finally, an extra 0.9% Medicare applies to earnings above \$200,000 (single) or \$250,000 (joint); the calculator adds it when you cross the threshold. This is federal SE tax only — your income tax is separate.
— Reader questions
How is self-employment tax calculated?
Multiply your net profit by 92.35% to get net earnings, then apply 15.3% — 12.4% Social Security (up to the wage base) plus 2.9% Medicare. On $100,000 of net income that is $92,350 × 15.3% ≈ $14,130. Half is deductible against your income tax.
What is the self-employment tax rate?
15.3% — made up of 12.4% for Social Security (on earnings up to the wage base, $176,100 in 2025) and 2.9% for Medicare (no cap). High earners pay an extra 0.9% Medicare above $200,000 single / $250,000 joint.
Why is SE tax based on 92.35% of my income?
The 7.65% reduction accounts for the employer-equivalent half of the tax, which an employee would not have counted in their own taxable wages. It keeps the self-employed roughly on par with employees, and the calculator shows the adjusted net-earnings figure.
Can I deduct part of the self-employment tax?
Yes — half of the SE tax (the employer-equivalent share) is an above-the-line deduction against your income tax. It reduces your income-tax bill, not the SE tax itself. On a $14,130 SE tax, about $7,065 is deductible.
Does a W-2 job reduce my self-employment tax?
It can. W-2 wages use the Social Security wage base first, so if they (plus your SE earnings) exceed the base, less of your SE income is subject to the 12.4% Social Security portion. The 2.9% Medicare still applies to all of it. Enter your W-2 wages to see the effect.