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Self-Employment Tax Calculator
Estimate your self-employment tax to understand your Social Security and Medicare obligations as a self-employed individual or small business owner.
Calculate Your Self-Employment Tax
Enter your net earnings from self-employment below to calculate your estimated tax liability.
How to Use This Self Employment Tax Calculator
- Enter your Net Earnings ($) — This value represents your net earnings
- Click Calculate — Review your results in the output section below the form. The calculator instantly computes all values based on your inputs.
- Adjust and Compare — Modify any input to see how changes affect the result. Try different scenarios to find the optimal approach for your situation.
All calculations are performed instantly in your browser. Your data is never sent to any server or stored anywhere — your financial information remains completely private.
Formula and Methodology: Self-Employment Tax Formula
SE Tax = Net Earnings × 92.35% × 15.3%
Social Security = Net × 0.9235 × 12.4% (up to wage base)
Medicare = Net × 0.9235 × 2.9% (no cap)
Where:
- Net Earnings — Self-employment income minus business expenses (Schedule C profit)
- 92.35% — Adjustment factor (equivalent to subtracting the employer-equivalent portion of SE tax)
- 12.4% — Social Security tax rate (combined employer + employee portions)
- 2.9% — Medicare tax rate (combined employer + employee portions)
- Wage Base — Social Security maximum earnings subject to tax ($168,600 in 2024)
Worked Example
Net self-employment income: $80,000. Taxable base: $80,000 × 0.9235 = $73,880. Social Security: $73,880 × 0.124 = $9,161. Medicare: $73,880 × 0.029 = $2,143. Total SE tax: $11,304. Deductible half: $5,652 (reduces income tax).
Limitations and Assumptions
Self-employed individuals pay both the employer and employee portions of FICA taxes. You can deduct half of SE tax on your income tax return (above-the-line deduction). If combined wages and SE income exceed $200,000 ($250,000 married filing jointly), an additional 0.9% Medicare surtax applies. Quarterly estimated tax payments are required to avoid penalties.
Real-World Example: Putting the Self Employment Tax to Work
Let's calculate taxes for a typical scenario.
Scenario: Michael is a single filer earning $85,000 in gross income. He contributes $6,500 to a traditional 401(k) and claims the standard deduction.
- Gross income: $85,000
- 401(k) contribution: -$6,500
- Adjusted Gross Income: $78,500
- Standard deduction: -$14,600
- Taxable income: $63,900
Using the progressive tax brackets: the first $11,600 is taxed at 10% ($1,160), income from $11,601-$47,150 at 12% ($4,266), and income from $47,151-$63,900 at 22% ($3,685). His total federal tax is approximately $9,111, giving him an effective tax rate of 10.7% — well below his marginal rate of 22%.
If Michael increases his 401(k) contribution to $15,000, his taxable income drops to $55,400, reducing his federal tax to approximately $7,239 — saving $1,872 in taxes while building retirement savings. This calculator helps model these tax-saving strategies.
Scenario Comparison: Self-Employment Tax by Net Income Level
Federal self-employment tax (Social Security 12.4% + Medicare 2.9%) on net earnings.
| Net Income | SE Tax Base (92.35%) | SE Tax | Deductible Half | Effective SE Rate |
|---|---|---|---|---|
| $30,000 | $27,705 | $4,239 | $2,120 | 14.1% |
| $50,000 | $46,175 | $7,065 | $3,533 | 14.1% |
| $75,000 | $69,263 | $10,597 | $5,299 | 14.1% |
| $100,000 | $92,350 | $14,130 | $7,065 | 14.1% |
| $200,000 | $168,600 SS cap + $184,700 Med | $22,453 | $11,227 | 11.2% |
