Self-Employment Tax Calculator
Estimate your Social Security and Medicare tax as a self-employed worker.
Your Details
Breakdown
Visual split of the key components
- SE Tax8477.73
- Remaining Earnings51522.270000000004
Sensitivity
How the result changes across a range
How It Works
- Enter the values on the left.
- Press Calculate to see your results and charts.
- Use Reset to start over from the defaults.
Formula Used
15.3% combines 12.4% Social Security and 2.9% Medicare (up to the Social Security wage base).
Good to Know
- • Half of SE tax is deductible from your income tax.
- • This is in addition to regular federal income tax.
Important Notes
- • Social Security portion caps at an annual wage base that changes yearly.
- • This is a simplified estimate — actual filing involves Schedule SE.
Why Self-Employed Workers Pay More in Payroll Tax
Traditional employees split Social Security and Medicare tax with their employer — each side pays half. Self-employed workers are responsible for both halves, which is why the combined self-employment tax rate (15.3%) is roughly double the employee-only payroll tax rate. This is on top of, not instead of, regular income tax.
The Deduction That Softens the Blow
To partially offset the "employer half" self-employed workers pay themselves, the IRS allows a deduction for half of the SE tax when calculating income tax. It doesn't reduce the SE tax itself, but it does lower taxable income for income tax purposes — worth remembering when estimating your overall tax bill.
Key Terms to Know
- SE tax rate — 15.3%, combining the employer and employee shares of Social Security and Medicare.
- 92.35% factor — the adjustment applied before calculating SE tax, roughly accounting for the "employer half" not being taxed twice.
Worked Example: $60,000 in Net Self-Employment Earnings
SE tax = $55,410 × 15.3% ≈ $8,478
Deductible half ≈ $4,239
That $8,478 SE tax is on top of regular federal income tax — a combined burden that often surprises new freelancers who are used to employee payroll withholding covering only half this rate.
Net Earnings Comparison Table
| Net Earnings | SE Tax |
|---|---|
| $40,000 | $5,652 |
| $60,000 | $8,478 |
| $100,000 | $14,130 |
Common Mistakes With Self-Employment Tax
- Forgetting SE tax is separate from income tax — both apply to self-employment earnings.
- Not setting aside money throughout the year — a large year-end bill can be a shock without planning.