Self-Employment Tax Calculator
Deductible expenses
Revenue ($100,000.00) - Expenses ($25,000.00)
Total Self-Employment Tax
$10,597.16
Social Security + Medicare
Deductible Portion
$5,298.58
Above-the-line deduction
Social Security Tax
$8,588.55
12.4% on first $184,500.00
Medicare Tax
$2,008.61
2.9% on all earnings
How SE Tax is Calculated
Net Earnings: $75,000.00
x 92.35% (taxable portion)
= Taxable SE Earnings: $69,262.50
Social Security (12.4%): $8,588.55
Medicare (2.9%): $2,008.61
Total SE Tax: $10,597.16
Quarterly Estimated Payments
Q1 (Apr 15)
$2,649.29
Q2 (Jun 15)
$2,649.29
Q3 (Sep 15)
$2,649.29
Q4 (Jan 15)
$2,649.29
SE tax only. You'll also need to pay estimated income tax quarterly.
Self-Employed vs Employee
Self-employed individuals pay both employer and employee portions of FICA taxes.
Net After SE Tax
$64,402.84
Before income tax
Effective SE Tax Rate
14.13%
Of net earnings
Tax-Saving Strategies
- Deduct half of SE tax: This reduces your adjusted gross income
- Maximize business deductions: Lower net earnings = lower SE tax
- Consider S-Corp election: May reduce SE tax for high earners
- Contribute to SEP-IRA or Solo 401(k): Reduces income tax
- Track all expenses: Home office, mileage, supplies, etc.
2026 Thresholds
- Social Security wage base: $184,500.00
- Additional Medicare tax (0.9%): On earnings over $200,000
- Minimum to file SE tax: $400 net earnings
About the Self-Employment Tax Calculator
The Self-Employment Tax Calculator estimates the Social Security and Medicare taxes owed by freelancers, contractors, gig workers, and sole proprietors. Unlike employees who split FICA with an employer, self-employed people pay both halves, a combined 15.3% rate made up of 12.4% for Social Security (up to the annual wage base) and 2.9% for Medicare with no cap. This is in addition to regular income tax.
The tool first multiplies your net self-employment earnings by 92.35%, because the IRS lets you exclude the employer-equivalent portion before applying the rate. It then applies 12.4% Social Security tax up to the year's wage base ceiling and 2.9% Medicare tax on the full amount, plus the additional 0.9% Medicare surtax on earnings above the high-income threshold. It also surfaces the deduction for one-half of SE tax, which reduces your income tax.
Independent workers use this to budget for quarterly estimated payments, to understand the true cost of going freelance versus W-2 employment, and to evaluate whether electing S-corporation status might lower their self-employment tax burden. It pairs with the Income Tax Calculator, since SE tax and income tax stack, and the Tax Return Calculator for projecting total quarterly obligations.
A key tip: set aside roughly 25-30% of net freelance income to cover both SE tax and income tax, and remember the one-half SE tax deduction softens the blow on the income-tax side. Only net profit (revenue minus business expenses) is subject to SE tax, so tracking deductible expenses carefully directly lowers what you owe.
Frequently asked questions
- What is the self-employment tax rate?
- It is 15.3% total: 12.4% for Social Security up to the annual wage base, plus 2.9% for Medicare on all earnings, with an extra 0.9% Medicare surtax on high incomes.
- Why is my income multiplied by 92.35%?
- The IRS lets you deduct the employer-equivalent half of SE tax before applying the rate, so only 92.35% of net earnings is subject to self-employment tax.
- Can I deduct any of the self-employment tax?
- Yes. You can deduct one-half of your self-employment tax as an adjustment to income, which lowers your taxable income for regular income tax purposes.
- Do I pay SE tax on gross or net income?
- On net income, which is your business revenue minus deductible business expenses. Tracking legitimate expenses reduces the earnings subject to the tax.