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Self-Employment Tax Calculator

Your SE tax on net profit, with the deductible half.

Details

Net self-employment profit ($)

Filing status

Results

Self-employment tax,

Social Security (12.4%),

Medicare (2.9%),

Taxable base (92.35%),

Deductible half,

Covers Social Security and Medicare only, no income tax in this figure.

By Priya Raman, covers federal payroll and self-employment tax rules
Reviewed July 2026

How Is Self-Employment Tax Calculated?

Self-employment tax isn't calculated on your full net profit. IRS Schedule SE first multiplies net earnings by 92.35%, then applies 12.4% for Social Security up to the annual wage base and 2.9% for Medicare with no ceiling at all. High earners add a 0.9% surtax above a fixed threshold. Half of the resulting total becomes a deduction against income tax, calculated separately.

Net earnings factor: 92.35%, per IRS Schedule SE instructions
Social Security: 12.4%, up to the wage base shown below
Medicare: 2.9%, uncapped
Additional Medicare Tax: 0.9% above $200,000 single or $250,000 married filing jointly, per IRS Form 8959

These are the same rates and thresholds programmed into this calculator; the full dated table lives on the reference page, with sources.

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See this year's full rate and wage-base table: worked examples across several income levels.

What Counts as Net Earnings From Self-Employment

Net earnings from self-employment is your business's gross income minus its ordinary and necessary expenses, the same bottom line that lands on Schedule C. It also picks up your share of active partnership income reported on a Schedule K-1, and freelance or gig income reported on a 1099-NEC or 1099-K once expenses are subtracted. Passive rental income and most investment income generally stay outside this calculation, since Schedule SE only reaches earnings from a trade or business you actively work in.

The obligation to pay starts small: the IRS requires SE tax once net earnings reach $400 for the year, a threshold set decades ago and never indexed for inflation. A side gig that clears a few hundred dollars can still trigger a Schedule SE filing even when it feels too minor to count as a real business.

SE tax basics

Self-Employment Tax FAQs

Do I owe SE tax if I only made $500 this year?

Yes. The IRS threshold for owing self-employment tax is $400 in net earnings, a fixed figure that hasn't changed in decades. At $500 you're above it and Schedule SE applies.

Does a full-time W-2 job change this calculation?

It can. The Social Security wage base is shared across your combined W-2 wages and self-employment earnings. If your job's wages already reach the cap, this tool may overstate the Social Security portion since it doesn't know about outside W-2 income.

Is the deductible half really free money?

No. It's an adjustment that lowers the income subject to federal income tax, not a credit against the SE tax itself. You still owe the full self-employment tax; the deduction just softens the income tax side.

Why is my Medicare portion higher than 2.9% of my profit?

You've likely crossed the Additional Medicare Tax threshold: $200,000 for single filers or $250,000 for married filing jointly. Earnings above that line owe an extra 0.9% under IRS Form 8959.