Self-Employment Tax Calculator

Calculate self-employment taxes for freelancers, independent contractors, and small business owners. Understand FICA, Medicare, and Social Security tax obligations.

Tax rates and thresholds vary by year. Select the appropriate tax year for accurate calculations.

Self-Employment Tax Formula: Self-employment tax = (Net earnings × 92.35%) × 15.3% (up to Social Security wage base) + Additional Medicare tax on high income

Where: 15.3% = 12.4% Social Security tax + 2.9% Medicare tax

$
Your net earnings from self-employment (after business expenses).
$30,000
$50,000
$75,000
$100,000
$150,000
$200,000
$250,000
$500,000
Affects Additional Medicare Tax thresholds
$
W-2 wages from other employment (for accurate Social Security cap calculation)
Calculating...

Understanding Self-Employment Taxes

Self-employment tax is how independent contractors, freelancers, and small business owners pay into Social Security and Medicare. Unlike traditional employees who split these taxes with their employers, self-employed individuals pay both the employer and employee portions.

Key Self-Employment Tax Components:

The self-employment tax rate is 15.3% on net earnings up to the Social Security wage base, consisting of:

  • Social Security Tax: 12.4% on the first $182,358 of net earnings (2026)
  • Medicare Tax: 2.9% on all net earnings (no income limit)
  • Additional Medicare Tax: 0.9% on earnings above $200,000 (single) or $250,000 (married filing jointly)

Self-Employment Tax Rates by Year

Tax Year Social Security Wage Base Social Security Rate Medicare Rate Total SE Tax Rate
2026 (est.) $182,358 12.4% 2.9% 15.3%
2025 (est.) $175,344 12.4% 2.9% 15.3%
2024 $168,600 12.4% 2.9% 15.3%
2023 $160,200 12.4% 2.9% 15.3%
2022 $147,000 12.4% 2.9% 15.3%

How Self-Employment Tax is Calculated

1

Calculate Net Earnings: Start with your gross self-employment income and subtract allowable business expenses to determine net earnings.

2

Apply 92.35% Reduction: Multiply net earnings by 92.35% to account for the employer portion of tax that would otherwise be deductible as a business expense.

3

Calculate Social Security Tax: Apply 12.4% to the lesser of (a) your reduced net earnings or (b) the Social Security wage base minus any W-2 wages subject to Social Security tax.

4

Calculate Medicare Tax: Apply 2.9% to all reduced net earnings. Add 0.9% Additional Medicare Tax if income exceeds threshold based on filing status.

Deductions and Tax Savings Strategies

  • 50% Self-Employment Tax Deduction: You can deduct half of your self-employment tax on your income tax return.
  • Quarterly Estimated Tax Payments: Self-employed individuals typically pay taxes quarterly to avoid penalties.
  • Business Expense Deductions: Keep accurate records of all business expenses to reduce taxable income.
  • Retirement Contributions: Contributions to SEP-IRA, Solo 401(k), or similar plans reduce taxable income.
  • Health Insurance Deduction: Self-employed health insurance premiums may be deductible.

Calculator Features:

  • Calculates Social Security and Medicare taxes based on current rates
  • Accounts for the Social Security wage base limit
  • Includes Additional Medicare Tax for high-income earners
  • Shows the 50% self-employment tax deduction
  • Provides visual breakdown of tax components

Frequently Asked Questions

Self-employed individuals pay both the employer and employee portions of Social Security and Medicare taxes, which totals 15.3%. Traditional employees split this cost with their employers, paying only 7.65% directly (with their employer matching the other 7.65%).

The 92.35% factor (100% - 7.65%) accounts for the employer portion of Social Security and Medicare taxes. Since self-employed individuals are considered both employer and employee, the law allows them to deduct the employer-equivalent portion (7.65%) when calculating their self-employment tax base.

If your net earnings from self-employment are $400 or more, you must file a tax return and pay self-employment tax. Even if you don't owe income tax, you may still owe self-employment tax on net earnings of $400 or more.

The Social Security tax only applies to income up to the wage base limit ($168,600 in 2024). If you have both W-2 employment and self-employment income, your W-2 wages that were subject to Social Security tax count toward this limit. Only the remaining amount up to the wage base is subject to Social Security tax through self-employment.

Yes, you can deduct 50% of your self-employment tax when calculating your adjusted gross income. This deduction is taken on Form 1040 and helps reduce your income tax burden, though it doesn't reduce your self-employment tax itself or your net earnings from self-employment.
2026