Self-Employment Tax Calculator

Calculate Social Security & Medicare taxes

SE Tax

$11,304

Effective Rate

14.1%

Monthly Tax

$942

Tax Deduction

$5,652

Self-Employment Tax = 15.3%

Social Security (12.4%) + Medicare (2.9%) on 92.35% of net earnings

Net Self-Employment Earnings

Net earnings = Gross income - Business expenses

Total Self-Employment Tax

$11,304

SS Tax

$9,161

Medicare Tax

$2,143

Monthly Tax

$942

Tax Deduction

$5,652

Effective Rate

14.1%

SE Tax Components

Social Security (12.4%)$9,161

Medicare (2.9%)$2,143

Tax Deduction (50%)$5,652

Frequently Asked Questions

What is self-employment tax?

Self-employment tax is the Social Security (12.4%) and Medicare (2.9%) taxes that self-employed individuals pay. It totals 15.3% of net earnings. W-2 employees split this with their employer (each paying 7.65%).

Why is only 92.35% of income taxed?

The 92.35% factor simulates the employer portion of FICA that W-2 workers don't pay on. It's calculated as 100% minus half of the SE tax rate (100% - 7.65% = 92.35%).

Can I deduct self-employment tax?

Yes, you can deduct half (50%) of your self-employment tax when calculating your adjusted gross income. This reduces your income tax but not your SE tax.

What is the Social Security wage base?

For 2024, Social Security tax applies only to the first $168,600 of net earnings. Income above this amount is only subject to the 2.9% Medicare tax (plus 0.9% additional Medicare over $200,000).

When do I pay self-employment tax?

SE tax is paid with your annual tax return (Form 1040, Schedule SE). If you expect to owe $1,000 or more, make quarterly estimated payments to avoid penalties.

Do I pay SE tax on all 1099 income?

SE tax applies to net earnings from self-employment (income minus business expenses). Investment income, rental income, and certain other passive income are not subject to SE tax.

Example Calculations

1Freelancer With $80,000 Net Earnings

Inputs

Net Self-Employment Earnings$80,000

Result

Total Self-Employment Tax$11,304

Taxable Earnings (92.35%)$73,880

Social Security Tax (12.4%)$9,161

Medicare Tax (2.9%)$2,143

Tax Deduction (50%)$5,652

Monthly Amount$942

Effective Rate14.13%

Taxable earnings = $80,000 x 0.9235 = $73,880. Social Security: $73,880 x 12.4% = $9,161. Medicare: $73,880 x 2.9% = $2,143. No additional Medicare (under $200K). Total SE tax = $9,161 + $2,143 = $11,304. Deductible half = $5,652.

2Consultant With $150,000 Net Earnings

Inputs

Net Self-Employment Earnings$150,000

Result

Total Self-Employment Tax$21,194

Taxable Earnings (92.35%)$138,525

Social Security Tax (12.4%)$17,177

Medicare Tax (2.9%)$4,017

Tax Deduction (50%)$10,597

Monthly Amount$1,766

Effective Rate14.13%

Taxable earnings = $150,000 x 0.9235 = $138,525. Social Security: $138,525 x 12.4% = $17,177 (under wage base of $168,600). Medicare: $138,525 x 2.9% = $4,017. No additional Medicare (under $200K). Total SE tax = $17,177 + $4,017 = $21,194. Deductible half = $10,597.

Formulas Used

Taxable Earnings

Taxable Earnings = Net Earnings x 92.35%

Only 92.35% of net self-employment earnings are subject to SE tax, simulating the employer portion adjustment.

Where:

Net Earnings= Gross self-employment income minus business expenses

92.35%= 100% minus half the SE tax rate (100% - 7.65%)

Self-Employment Tax

SE Tax = (Min(Taxable Earnings, $168,600) x 12.4%) + (Taxable Earnings x 2.9%) + Additional Medicare

Combines Social Security tax (capped at wage base) and Medicare tax (uncapped) to get total SE tax.

Where:

12.4%= Social Security tax rate (employer + employee portions)

2.9%= Medicare tax rate (employer + employee portions)

Additional Medicare= 0.9% on taxable earnings over $200,000

Deductible Portion

Deductible Portion = SE Tax / 2

You can deduct half of your self-employment tax from adjusted gross income.

Where:

SE Tax= Total self-employment tax calculated above

Frequently Asked Questions

What is self-employment tax?

Why is only 92.35% of income taxed?

The 92.35% factor simulates the employer portion of FICA that W-2 workers don't pay on. It's calculated as 100% minus half of the SE tax rate (100% - 7.65% = 92.35%).

Can I deduct self-employment tax?

Yes, you can deduct half (50%) of your self-employment tax when calculating your adjusted gross income. This reduces your income tax but not your SE tax.

What is the Social Security wage base?

For 2024, Social Security tax applies only to the first $168,600 of net earnings. Income above this amount is only subject to the 2.9% Medicare tax (plus 0.9% additional Medicare over $200,000).

When do I pay self-employment tax?

SE tax is paid with your annual tax return (Form 1040, Schedule SE). If you expect to owe $1,000 or more, make quarterly estimated payments to avoid penalties.

Do I pay SE tax on all 1099 income?

SE tax applies to net earnings from self-employment (income minus business expenses). Investment income, rental income, and certain other passive income are not subject to SE tax.

Example Calculations

1Freelancer With $80,000 Net Earnings

Inputs

Net Self-Employment Earnings$80,000

Result

Total Self-Employment Tax$11,304

Taxable Earnings (92.35%)$73,880

Social Security Tax (12.4%)$9,161

Medicare Tax (2.9%)$2,143

Tax Deduction (50%)$5,652

Monthly Amount$942

Effective Rate14.13%

2Consultant With $150,000 Net Earnings

Inputs

Net Self-Employment Earnings$150,000

Result

Total Self-Employment Tax$21,194

Taxable Earnings (92.35%)$138,525

Social Security Tax (12.4%)$17,177

Medicare Tax (2.9%)$4,017

Tax Deduction (50%)$10,597

Monthly Amount$1,766

Effective Rate14.13%

Formulas Used

Taxable Earnings

Taxable Earnings = Net Earnings x 92.35%

Only 92.35% of net self-employment earnings are subject to SE tax, simulating the employer portion adjustment.

Where:

Net Earnings= Gross self-employment income minus business expenses

92.35%= 100% minus half the SE tax rate (100% - 7.65%)

Self-Employment Tax

SE Tax = (Min(Taxable Earnings, $168,600) x 12.4%) + (Taxable Earnings x 2.9%) + Additional Medicare

Combines Social Security tax (capped at wage base) and Medicare tax (uncapped) to get total SE tax.

Where:

12.4%= Social Security tax rate (employer + employee portions)

2.9%= Medicare tax rate (employer + employee portions)

Additional Medicare= 0.9% on taxable earnings over $200,000

Deductible Portion

Deductible Portion = SE Tax / 2

You can deduct half of your self-employment tax from adjusted gross income.

Where:

SE Tax= Total self-employment tax calculated above

Self-Employment Tax Calculator

Earnings

SE Tax Components

Quarterly Payment Schedule

Frequently Asked Questions

What is self-employment tax?

Why is only 92.35% of income taxed?

Can I deduct self-employment tax?

What is the Social Security wage base?

When do I pay self-employment tax?

Do I pay SE tax on all 1099 income?

Example Calculations

1Freelancer With $80,000 Net Earnings

2Consultant With $150,000 Net Earnings

Formulas Used

Taxable Earnings

Self-Employment Tax

Deductible Portion

Related Resources

Related Calculators

1099 Tax Calculator

Take Home Pay

More Tax Calculators

Self-Employment Tax Calculator

Earnings

SE Tax Components

Quarterly Payment Schedule

Frequently Asked Questions

What is self-employment tax?

Why is only 92.35% of income taxed?

Can I deduct self-employment tax?

What is the Social Security wage base?

When do I pay self-employment tax?

Do I pay SE tax on all 1099 income?

Example Calculations

1Freelancer With $80,000 Net Earnings

2Consultant With $150,000 Net Earnings

Formulas Used

Taxable Earnings

Self-Employment Tax

Deductible Portion

Related Resources

Related Calculators

1099 Tax Calculator

Take Home Pay

More Tax Calculators