Self-Employment Tax Calculator

Enter your self-employment income and any employer-paid (W-2) income to calculate your estimated self-employment tax — including both the Social Security (12.4%) and Medicare (2.9%) portions. You'll see your total SE tax, the deductible half you can write off, and your net tax liability broken down clearly.

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Enter your total net profit from freelance, 1099, or sole proprietor work before deductions.

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Include any wages from an employer where Social Security taxes were already withheld. This reduces your SE tax Social Security base.

Used to determine Additional Medicare Tax threshold ($200K single / $250K married jointly).

Results

Total Self-Employment Tax

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Social Security Tax (12.4%)

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Medicare Tax (2.9%)

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Additional Medicare Tax (0.9%)

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Deductible Half of SE Tax

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Net SE Income (92.35% of Gross)

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Effective SE Tax Rate

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Self-Employment Tax Breakdown

Frequently Asked Questions

What is the self-employment tax?

Self-employment tax consists of Social Security and Medicare taxes for individuals who work for themselves. Employees split these taxes with their employer — each paying half — but self-employed individuals must pay both halves: 12.4% for Social Security and 2.9% for Medicare, totaling 15.3% on net earnings.

Do I have to pay self-employment tax?

If you earn $400 or more in net self-employment income during the year, you are required to pay SE tax. This applies to sole proprietors, independent contractors, freelancers, and gig workers — even if you are paid in cash and do not receive a 1099 form.

How is self-employment tax calculated?

SE tax is calculated on 92.35% of your net self-employment income (the IRS applies this adjustment to account for the employer-equivalent deduction). The 15.3% SE tax rate is then applied to this amount, up to the Social Security wage base ($176,100 for 2025). Earnings above that cap are still subject to the 2.9% Medicare tax.

What is the Social Security wage base for 2025?

For 2025, the Social Security wage base is $176,100. Only income up to this threshold is subject to the 12.4% Social Security portion of SE tax. The 2.9% Medicare tax has no earnings cap and applies to all net self-employment income.

Can I deduct any of the self-employment tax I pay?

Yes. The IRS allows you to deduct half of your SE tax from your gross income when calculating your adjusted gross income (AGI). This deduction mirrors the benefit employees receive, since their employer pays half. It reduces your income tax — but not the SE tax itself.

What is the Additional Medicare Tax, and does it affect me?

An additional 0.9% Medicare surtax applies to self-employment income above $200,000 for single filers or $250,000 for married filing jointly. If your combined wages and SE income exceed these thresholds, the extra 0.9% is assessed on the amount over the limit.

How do W-2 wages affect my self-employment tax?

If you also have wages from an employer (W-2 income), those wages count toward the Social Security wage base first. Only the remaining room under the cap is then subject to the 12.4% Social Security tax on your SE income. The Medicare portion still applies to all SE income regardless.

Do I need to make quarterly estimated tax payments?

Yes, self-employed individuals who expect to owe at least $1,000 in taxes for the year are generally required to make quarterly estimated tax payments to the IRS (due in April, June, September, and January). These cover both your income tax and self-employment tax obligations throughout the year.

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