🧑‍💼 Self-Employment Tax Calculator

Calculate the Social Security and Medicare tax you owe on self-employment income for 2026, including the Additional Medicare Tax and the deductible half of SE tax.

🧑‍💼 Self-Employment Earnings
$
Your Schedule C profit (business income minus business expenses).
$
Verify the current year's limit at ssa.gov — this changes annually.
$
$200,000 single / $250,000 married filing jointly — adjust as needed.
🧑‍💼

Ready to Calculate

Enter your net self-employment earnings, then click Calculate to see results.

Self-Employment Tax Results
Total SE Tax
Social Security + Medicare
Social Security Portion
12.4% up to wage base
Medicare Portion
incl. Additional Medicare
Deductible Half of SE Tax
income tax deduction
⚠️ The wage base and thresholds change every year — verify current figures at ssa.gov and irs.gov. This is a federal estimate only and doesn't include state self-employment-related taxes. Not tax advice — consult a licensed tax professional.
Tax Breakdown
ItemAmount
Guide

About the Self-Employment Tax Calculator

Last updated: August 2026 · Reviewed by the NeftCal editorial team

A self-employment tax calculator estimates the Social Security and Medicare tax you owe on net self-employment earnings — the self-employed equivalent of the FICA tax that employees split with their employer. NeftCal's tool is built for freelancers, independent contractors, gig workers, sole proprietors, and single-member LLC owners who need a fast, clear estimate of their SE tax for 2026, including the Additional Medicare Tax on high earnings and the deductible half of the tax that lowers their income-tax bill.

Because self-employed workers have no employer withholding and matching these taxes, they are responsible for both shares — 12.4% for Social Security plus 2.9% for Medicare, or 15.3% combined on net earnings from self-employment. The calculator applies the IRS 92.35% net-earnings factor, caps the 12.4% Social Security portion at the annual wage base, taxes all net earnings at 2.9% for Medicare, adds 0.9% Additional Medicare Tax above your filing threshold, and reports the half of the total you can deduct on Form 1040. This mirrors the logic of Schedule SE in a form you can run in seconds.

Who Should Use This Calculator

This tool is useful for freelancers and 1099 contractors estimating how much to set aside for taxes, gig workers whose side income clears the $400 filing threshold, sole proprietors running year-end tax planning, newly self-employed people facing their first quarterly estimated payment deadline, and anyone checking whether their earnings approach the Social Security wage base or the Additional Medicare Tax threshold — both of which change your effective rate as income grows.

Why It Matters for Financial Planning

SE tax is often the single largest tax bill a newly self-employed person faces, and it is easy to underestimate when it is not withheld from pay. Knowing your Social Security portion, Medicare portion, and Additional Medicare Tax separately helps you budget accurately for quarterly estimated payments and avoid underpayment penalties. Pairing this with a business tax calculator to compare entity structures — sole proprietorship versus S-Corp, for example — and a business sales tax calculator to keep sales tax obligations separate completes a fuller view of your tax footprint.

Tips for Accurate Results

  • Enter net Schedule C profit — income minus deductible business expenses — not gross revenue, because SE tax applies only to net earnings
  • Verify the current year's Social Security wage base and Additional Medicare Tax threshold at ssa.gov and irs.gov, since both change annually or by filing status
  • Remember the deductible half of SE tax lowers your income tax, not the SE tax itself — factor it into overall planning
  • If you also have W-2 wages, those wages consume part of the same wage base, so the true figure may differ — reconcile with Schedule SE or a tax professional
  • If you operate as an S-Corp, use the Business Tax Calculator, since S-Corp distributions are generally not subject to SE tax
Formula

How Self-Employment Tax is Calculated

SE tax combines a capped Social Security portion and an uncapped Medicare portion on 92.35% of your net profit

Self-Employment Tax Formula
Net Earnings from SE = Net SE Earnings × 92.35%
Social Security Portion = min(Net Earnings from SE, SS Wage Base) × 12.4%
Medicare Portion = Net Earnings from SE × 2.9%
Additional Medicare Tax = max(0, Net Earnings from SE − Threshold) × 0.9%
Total SE Tax = Social Security Portion + Medicare Portion + Additional Medicare Tax
Deductible Half = Total SE Tax × 50%
📊

Two Separate Portions

Social Security (12.4%) only applies up to the annual wage base — $185,100 in 2026. Medicare (2.9%) applies to all net self-employment earnings, with no cap.

📈

Additional Medicare Tax

High earners pay an extra 0.9% on net earnings above the filing-status threshold — $200,000 single, $250,000 married filing jointly — with no employer-equivalent deduction.

💰

Half is Deductible

You can deduct half of your total SE tax on your personal return, which lowers your taxable income for income tax purposes (not for SE tax itself).

⚙️ Why This Formula Works

An employee's FICA tax is withheld on wages only, while the employer pays a matching half that is never counted as the employee's income. A self-employed person is both employer and employee, so the IRS applies the 92.35% factor (100% minus the 7.65% employer-equivalent half) to put the two on the same footing. The 12.4% Social Security portion is capped at the annual wage base because benefits are based on covered earnings up to that limit, while the 2.9% Medicare portion is uncapped to match Medicare's broad coverage. The 0.9% Additional Medicare Tax above a filing threshold is a surtax on very high combined earnings, and the deductible half restores the employer-equivalent deduction that a wage earner never pays tax on.

🎯 When to Use This Formula

  • Sizing quarterly estimated tax payments for the current year
  • Setting aside the right percentage of each invoice for taxes
  • Checking whether you are approaching the Social Security wage base
  • Planning for the Additional Medicare Tax if your earnings are near the threshold
  • Comparing the SE tax cost of sole proprietorship versus an S-Corp

📋 Assumptions

  • Your input is accurate net Schedule C profit, not gross revenue
  • The Social Security wage base entered matches the current tax year
  • The Additional Medicare threshold entered matches your filing status
  • All earnings entered are net earnings from self-employment, with no separate adjustment for W-2 wages already covered

⚠️ Limitations of the Formula

  • The wage base and thresholds change annually and must be verified each year
  • Federal-only — state income and state-level self-employment taxes are excluded
  • Estimates SE tax only, not federal income tax on the same earnings
  • Doesn't reconcile W-2 wages that already consumed part of the Social Security wage base
  • Simplified for planning; Schedule SE and a tax professional cover edge cases
Walkthrough

Step-by-Step: How to Use the Self-Employment Tax Calculator

From Schedule C profit to a complete SE tax estimate in under a minute

Enter your net self-employment earnings

Input your Schedule C net profit — business income minus deductible business expenses. Use net profit, not gross revenue, because SE tax applies only to net earnings.

Set the Social Security wage base

Verify the current year's limit at ssa.gov — $185,100 in 2026, for example — and enter it. The calculator applies the 12.4% Social Security portion only up to this amount.

Set your Additional Medicare Tax threshold

Enter the threshold that matches your filing status: $200,000 for single filers, $250,000 for married filing jointly, or $125,000 for married filing separately.

Click Calculate

The calculator applies the 92.35% net-earnings factor, computes the Social Security and Medicare portions plus any Additional Medicare Tax, and totals your SE tax.

Review your results

See your Total SE Tax, Social Security portion, Medicare portion, and Deductible Half, plus a line-by-line tax breakdown table that shows each step of the calculation.

Export or rerun for planning

Download a plain-text estimate for your records, adjust the inputs to run what-if scenarios, and use the result when budgeting quarterly estimated payments.

Example

Worked Example

A realistic freelance scenario, calculated with the same math the calculator uses

Scenario

Suppose a freelance designer has $90,000 of net profit on Schedule C for the year and files single, with no other self-employment income. For 2026 the Social Security wage base is $185,100 and the Additional Medicare Tax threshold for a single filer is $200,000 — both well above this year's earnings, so the full 12.4% and 2.9% rates apply and no Additional Medicare Tax is owed.

Net Self-Employment Earnings$90,000
Social Security Wage Base$185,100
Additional Medicare Threshold$200,000
Step 1 — Net earnings from self-employment: $90,000 × 92.35% = $83,115.
Step 2 — Social Security portion: $83,115 is below the $185,100 wage base, so the full amount is taxed: $83,115 × 12.4% = $10,306.26.
Step 3 — Medicare portion: $83,115 × 2.9% = $2,410.34 (rounded).
Step 4 — Additional Medicare Tax: $83,115 is below the $200,000 threshold, so the additional 0.9% is $0.00.
Step 5 — Total SE tax: $10,306.26 + $2,410.34 + $0.00 = $12,716.60.
Step 6 — Deductible half: $12,716.60 × 50% = $6,358.30.
Total SE Tax
$12,716.60
Social Security Portion
$10,306.26
Medicare Portion
$2,410.34
Deductible Half
$6,358.30

Explanation: This designer's effective SE tax rate on net profit is about 14.1% ($12,716.60 ÷ $90,000), which is the full 15.3% combined rate applied to 92.35% of profit. Because earnings sit below both the wage base and the Additional Medicare threshold, the Social Security and Medicare portions both apply in full. Of the total, $6,358.30 is deductible on Form 1040 — for someone in the 22% bracket that saves roughly $1,399 in income tax, reducing the real net cost of the SE tax to about 12.6% of profit.

Sanity check: if you click Calculate with these three inputs, the calculator reports the same totals above. As this designer's earnings grow past the $185,100 wage base, the Social Security portion stops increasing, so the effective rate drifts down — until earnings cross the $200,000 Additional Medicare threshold and the extra 0.9% pushes it back up.

Interpretation

Understanding Your Results

How your total SE tax changes as income crosses the wage base and the Additional Medicare threshold

Your Total SE Tax is the number to plan around, but the Social Security portion and the Additional Medicare Tax are what make it non-linear. These are illustrative 2026 figures using a $185,100 wage base and a $200,000 single-filer threshold — verify both at ssa.gov and irs.gov for your situation.

Net Self-Employment EarningsEstimated SE Tax (2026)General Read
$30,000$4,238.87Full 15.3% combined rate on 92.35% of profit; well below the wage base
$60,000$8,477.73Same rate structure; a comfortable margin below the wage base and threshold
$100,000$14,129.55Still below the $185,100 wage base; the full Social Security portion applies
$150,000$21,194.32Approaching the wage base; most Social Security exposure still applies
$250,000$29,925.65Wage base reached — Social Security caps; Additional Medicare Tax ($277.88) now applies
$400,000$35,189.60Social Security fully capped; Medicare uncapped plus $1,524.60 of Additional Medicare Tax

For the Social Security portion: the 12.4% charge stops growing once your net earnings from self-employment reach the wage base. From that point, additional earnings are taxed only for Medicare, which is why the effective rate falls as income rises between the wage base and the Additional Medicare threshold.

For the Medicare and Additional Medicare portions: the 2.9% base tax is uncapped, and the extra 0.9% begins only above your filing threshold. Because the 0.9% applies to every dollar above the threshold, it adds roughly $900 per $100,000 of income above it — meaningful for high earners planning quarterly payments.

Risk considerations: the wage base and thresholds change annually, state taxes are not included, and if you also have W-2 wages the calculator doesn't reconcile them against the same wage base. Treat the result as a planning estimate to verify at filing, not a guaranteed tax bill.

ℹ️

This calculator provides estimates for educational and informational purposes only. Results may vary depending on business conditions, accounting methods, taxes, market trends, and other factors. It should not be considered financial, legal, tax, accounting, or investment advice. Consult qualified professionals before making business decisions.

Use Cases

Practical Use Cases for the Self-Employment Tax Calculator

Where this SE tax estimator earns its keep

🧑‍💻

Freelancers & 1099 contractors

Estimate SE tax on project income and set aside the right amount per invoice.

🚕

Gig workers

Ride-share, delivery, and task-platform income is self-employment once it clears the $400 threshold.

🏡

Sole proprietors

Year-end estimate of the Social Security and Medicare tax on Schedule C profit.

🛍️

Side-hustle planning

See how much a new side business adds to your SE tax before you scale it up.

💼

S-Corp comparison

Compare sole-proprietor SE tax with a structure where distributions avoid it, using the Business Tax Calculator.

📆

Quarterly estimated payments

Size each of your four estimated payments so you avoid underpayment penalties.

🧾

First-year self-employment

New freelancers can see the true cost of self-employment before their first filing.

📈

Wage-base planning

Check whether approaching the Social Security wage base changes your marginal SE rate.

🔼

Additional Medicare planning

High earners can see when the extra 0.9% begins and exactly how much it adds.

💰

Deduction forecasting

Estimate the deductible half of SE tax for your income-tax planning.

🎓

Students & part-time workers

Track the $400 threshold when a side business adds to student income.

🤝

Partnership members

Estimate SE tax on your share of partnership income.

🏦

Loan & mortgage prep

Lenders often ask for a defensible tax estimate — have your SE tax figure ready.

📊

Annual tax prep

Re-run at year-end with final numbers to prepare for your tax return.

Pros & Cons

Advantages and Limitations

What this SE tax calculator does well, and where it can't replace Schedule SE or a tax professional

✅ Advantages

  • Computes Social Security and Medicare portions separately, plus the Additional Medicare Tax
  • Applies the official 92.35% net-earnings adjustment automatically
  • Reports the deductible half of SE tax for income-tax planning
  • Includes a line-by-line tax breakdown table that mirrors Schedule SE logic
  • Adjustable Social Security wage base to match the current year
  • Adjustable Additional Medicare threshold for single, MFJ, MFS, and head-of-household filers
  • Instant results with no signup and no personal data collected
  • Runs entirely in your browser — your earnings never leave your device
  • Downloadable plain-text summary for your records
  • Free to use on any device, any time
  • Useful for what-if planning across income levels
  • Clear disclaimers and pointers to ssa.gov and irs.gov for verification

⚠️ Limitations

  • The Social Security wage base and thresholds change annually and must be verified each year
  • Applies the wage base to self-employment earnings only — it doesn't reconcile W-2 wages already subject to FICA
  • Federal-only estimate; excludes state income taxes and state-level self-employment programs
  • Estimates SE tax only, not the federal income tax on the same earnings
  • Relies on an accurate net Schedule C profit input
  • Simplified for planning; doesn't model special cases like the church-employee threshold
  • Uses the single Additional Medicare threshold you enter — couples must enter the right figure for their status
  • Not a substitute for Schedule SE, tax software, or a licensed tax professional
Reference

Self-Employment Tax vs Employee FICA vs Business Tax Compared

Three different tax layers — make sure you're reading the right one

AspectSelf-Employment Tax (this tool)Employee FICABusiness Income Tax
What it fundsSocial Security + MedicareSocial Security + MedicareFederal (and state) government revenue
Who pays itSelf-employed person pays both sharesEmployee and employer split both sharesThe business/entity on taxable profit
Combined rate15.3% (12.4% SS + 2.9% Medicare)15.3% split: 7.65% employee, 7.65% employerDepends on brackets and entity type
Wage base12.4% capped at the annual wage base; 2.9% uncappedSame wage base, capped per employerNot wage-based
Additional Medicare+0.9% above the filing threshold+0.9% withheld on wages over $200,000Not applicable
DeductionHalf of SE tax deductible on Form 1040Employee share not deductible; employer share is a business expenseBusiness deductions reduce taxable profit
NeftCal toolThis calculatorPayroll CalculatorBusiness Tax Calculator

SE tax funds the same programs as FICA but is paid entirely by the worker, with the 92.35% factor and half-of-tax deduction offsetting the employer share. Business income tax is a separate layer computed on taxable profit. Pair this tool with the Business Tax Calculator for entity comparisons and the Business Sales Tax Calculator to keep sales tax obligations separate.

Common Mistakes and Expert Tips

❌ Common Mistakes

  • Entering gross revenue instead of net Schedule C profit, which overstates the tax
  • Forgetting to update the wage base and Additional Medicare threshold to the current year
  • Using the wrong Additional Medicare threshold for their filing status
  • Ignoring the deductible half of SE tax when planning income taxes
  • Assuming S-Corp distributions are subject to SE tax (they generally aren't)
  • Believing the result includes income tax or state taxes
  • Treating the estimate as final instead of reconciling with Schedule SE at filing
  • Forgetting that W-2 wages consume part of the same Social Security wage base

💡 Expert Tips & Best Practices

  • Set the wage base and threshold to the current year before you calculate
  • Re-run quarterly as year-to-date profit changes to right-size estimated payments
  • Plan on roughly 25–35% of net profit going to taxes when setting money aside
  • Use the deductible half to lower your income-tax estimate, not the SE tax itself
  • Pair this with the Business Tax Calculator to compare sole proprietorship vs S-Corp
  • Re-check the wage base at ssa.gov each December for the upcoming year
  • Keep a paper trail of your net-profit calculations so the estimate ties back to Schedule C
FAQ

Frequently Asked Questions

Common questions about self-employment tax

What is self-employment tax and who owes it?
Self-employment (SE) tax is the self-employed version of FICA — the combined Social Security and Medicare tax that employees split with their employer. Because freelancers, contractors, and sole proprietors have no employer to withhold and match these taxes, they pay both shares themselves. You generally owe SE tax when your net self-employment earnings reach $400 in a year, which includes sole proprietors, independent contractors, gig workers, single-member LLC owners, and partners in a partnership.
Why is net earnings multiplied by 92.35% instead of 100%?
An employee's Social Security and Medicare tax is computed only on their wages, not on the employer's matching share. Since a self-employed person is both employer and employee, the tax code applies a 92.35% factor — 100% minus half of the 15.3% combined rate, rounded — to approximate the same treatment. This gives self-employed people the equivalent of the employer-side deduction before the tax is calculated, so you enter your full Schedule C profit but only 92.35% of it is taxed.
Why is half of self-employment tax deductible?
Because a self-employed person pays both the employee and employer shares of Social Security and Medicare tax, the IRS allows a deduction for half of the total SE tax on the personal income tax return (Form 1040). This mirrors how an employer's half of FICA is not counted as the employee's taxable income. The deduction reduces your income tax; it does not reduce the SE tax itself. The calculator shows this figure as the Deductible Half of SE Tax.
What is the self-employment tax rate for 2026?
The combined self-employment tax rate is 15.3% of net earnings from self-employment: 12.4% for Social Security plus 2.9% for Medicare. The 12.4% portion applies only up to the annual Social Security wage base — $185,100 in 2026, up from $176,100 in 2025 (verify at ssa.gov). The 2.9% Medicare portion applies to all net earnings with no cap, and high earners may owe an additional 0.9% Medicare Tax above their filing threshold.
What is the Additional Medicare Tax and who owes it?
The Additional Medicare Tax is an extra 0.9% on net earnings from self-employment and wages above a threshold based on filing status: $200,000 for single filers and heads of household, $250,000 for married filing jointly, and $125,000 for married filing separately. Unlike the base Medicare tax, there is no employer-equivalent deduction for this extra amount. The calculator asks for your threshold and adds the 0.9% only on net earnings above it.
Does the Social Security portion apply to all my earnings?
No — the 12.4% Social Security portion applies only up to the annual Social Security wage base, which changes every year. Once your net earnings from self-employment reach the wage base, no further Social Security tax is owed for the year. Earnings above the wage base are still subject to the 2.9% Medicare portion, with no cap, and the Additional Medicare Tax can add 0.9% above your filing threshold.
Is self-employment tax the same as income tax?
No. Self-employment tax funds Social Security and Medicare, while income tax funds general government programs, and you generally owe both. SE tax is computed on your net self-employment earnings at up to 15.3%, while income tax is computed on taxable income using the ordinary brackets. Half of your SE tax is deductible when computing taxable income, but the two taxes are calculated separately. This calculator estimates only the SE tax portion — your full bill also includes federal income tax and, in most states, state taxes.
When is self-employment tax due?
Self-employment tax is generally due throughout the year with your quarterly estimated tax payments, because the IRS collects it as you earn rather than in one lump sum at filing. For most filers, quarterly payments are due in April, June, September, and January. If you owe less than $1,000 in tax for the year, you may avoid an underpayment penalty, but a large SE tax bill is one of the most common reasons freelancers face penalties. A common rule of thumb is to set aside roughly 25–35% of net profit for taxes.
How do I calculate self-employment tax if I also have W-2 wages?
When you have both W-2 wages and self-employment income, your combined earnings are measured against the Social Security wage base. Wages already covered by FICA reduce the amount of net self-employment earnings still subject to the 12.4% Social Security portion, and the Additional Medicare Tax is measured on combined wages plus net earnings against your filing threshold. This calculator applies the wage base to your self-employment earnings alone, so if you also earn substantial W-2 wages your true SE tax may be lower than the estimate — use Schedule SE or a tax professional to reconcile the two.
What counts as net self-employment earnings?
Net self-employment earnings begin with your net profit from Schedule C — business revenue minus deductible business expenses — or from the corresponding form if you report through a partnership or other structure. The IRS then applies the 92.35% factor to arrive at net earnings from self-employment, which is the base SE tax is computed on. This is not your gross revenue, and it excludes investment income, most rental income, and S-Corp wages you already received as an employee.
Do I owe self-employment tax if my side hustle loses money?
Generally no. SE tax applies only when you have net self-employment earnings of $400 or more in a year — roughly $433 of Schedule C net profit, since the 92.35% factor applies. If your business expenses exceed your revenue and you have no other self-employment income, there is nothing to tax, though you should still report the activity on Schedule C. A loss also reduces your combined net earnings if you have several income-producing activities. This calculator requires a positive net earnings figure to compute.
What's the difference between SE tax and FICA for employees?
Employees split FICA with their employer: 7.65% is withheld from their pay (6.2% Social Security plus 1.45% Medicare) and the employer pays a matching 7.65%, for 15.3% combined. Self-employed people pay the full 15.3% themselves, but the 92.35% factor and the half-of-SE-tax deduction offset part of that employer share. Both use the same Social Security wage base, and the Additional Medicare Tax applies to employees too, withheld on wages above $200,000.
Does this calculator include state taxes?
No. This is a federal estimate that covers only Social Security and Medicare self-employment tax. It does not include federal income tax, state income taxes, or state-level programs that apply to self-employed workers — such as California's SDI or similar programs in a handful of states. Many states also require separate estimated payments. Use this result for federal SE tax planning and combine it with state guidance and a qualified tax professional for your complete tax picture.
How is SE tax different for an S-Corp owner?
Owners of an S-Corp who work in the business generally take a reasonable salary that is subject to FICA tax, while distributions of remaining profit are not subject to self-employment tax at all. That can reduce total payroll taxes relative to sole proprietorship, but it requires running payroll and paying a reasonable salary. This calculator is built for sole proprietors, single-member LLCs, freelancers, and independent contractors whose income flows through Schedule C — if you operate as an S-Corp, the Business Tax Calculator is the better fit for your structure.
Learn More

Authoritative Resources on Self-Employment Tax

Official guidance to complement this calculator — not a substitute for professional tax advice

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