How to use the self-employment tax calculator
- Enter net profit from your business after expenses.
- Add W-2 wages if you also have a job. They use up part of the social security base.
- Pick your filing status. It sets the Additional Medicare Tax threshold.
- Read the SE tax, the deduction for half of it and the Additional Medicare Tax.
How self-employment tax is worked out
Self-employed people pay both halves of social security and Medicare tax. Schedule SE multiplies net profit by 92.35% to get net earnings, then charges 12.4% for social security and 2.9% for Medicare. On a profit of $80,000 that is $73,880.00 of net earnings, $9,161.12 of social security and $2,142.52 of Medicare, for $11,303.64 in total. For a pay-stub view of withholding on a job, see the paycheck calculator.
Half of the tax is deductible
Schedule SE line 13 lets you deduct one-half of the self-employment tax on Schedule 1, which lowers your income tax but not the self-employment tax itself. For $80,000 of profit the deduction is $5,651.82. This self employment tax calculator shows that line but does not work out your income tax, so the saving depends on your bracket.
Additional Medicare Tax above $200,000
A further 0.9% applies to self-employment income above $200,000 for single and head of household filers, $250,000 for married filing jointly and $125,000 for married filing separately. W-2 Medicare wages use up the threshold first. A married couple filing jointly with $150,000 of wages and a $300,000 profit owes $1,593.45 of Additional Medicare Tax on top of $12,312.45 of self-employment tax. It is figured on Form 8959, and is not part of Schedule SE line 12.
Under $400 of net earnings
If net earnings are under $400 after the 92.35% adjustment, Schedule SE says to stop: there is no self-employment tax. A net loss also owes none, and the self employment tax calculator shows zero for both lines. A profit of about $433 or less lands under that line.
Method and sources
Rules: Schedule SE (Form 1040) for 2026, lines 3 to 13 (92.35%, the $184,500 maximum for 2026, 12.4% of the smaller of net earnings and the room left after W-2 social security wages, 2.9% of all net earnings, one-half deduction), and the Instructions for Schedule SE (2026), which state the same $184,500 maximum and the Additional Medicare Tax thresholds of $250,000, $125,000 and $200,000 reduced by wages subject to that tax. The formulas are covered by the repository's automated tests. One edge case: if W-2 social security wages already reach $184,500, no social security part is due on the self-employment income, and only the 2.9% Medicare part (plus any Additional Medicare Tax) applies. What it leaves out: the optional methods, church employee income, the qualified business income deduction, income tax, state tax and net earnings from several businesses (add them together first). It treats W-2 wages as both social security and Medicare wages. This is an estimate for planning, not tax advice. Constants to refresh each January: the social security wage base, the 92.35% and rates if the law changes, the Additional Medicare thresholds.
Worked examples
| Example | Input | Result |
|---|---|---|
| Freelancer, no other job | Net profit from self-employment ($): 80000; W-2 wages from a job in the same year ($): 0; Filing status: single | Net earnings from self-employment (line 4a): $73,880.00; Social security part (12.4%): $9,161.12; Medicare part (2.9%): $2,142.52; Self-employment tax (line 12): $11,303.64; Deduction for half of SE tax (line 13): $5,651.82; Additional Medicare Tax (Form 8959): $0.00; Self-employment tax as % of net profit: 14.13%; Quarterly set-aside for SE tax: $2,825.91 |
| Side business next to a $90,000 job | Net profit from self-employment ($): 120000; W-2 wages from a job in the same year ($): 90000; Filing status: single | Net earnings from self-employment (line 4a): $110,820.00; Social security part (12.4%): $11,718.00; Medicare part (2.9%): $3,213.78; Self-employment tax (line 12): $14,931.78; Deduction for half of SE tax (line 13): $7,465.89; Additional Medicare Tax (Form 8959): $7.38; Self-employment tax as % of net profit: 12.44%; Quarterly set-aside for SE tax: $3,732.95 |
| High earner over the social security base | Net profit from self-employment ($): 250000; W-2 wages from a job in the same year ($): 0; Filing status: single | Net earnings from self-employment (line 4a): $230,875.00; Social security part (12.4%): $22,878.00; Medicare part (2.9%): $6,695.38; Self-employment tax (line 12): $29,573.38; Deduction for half of SE tax (line 13): $14,786.69; Additional Medicare Tax (Form 8959): $277.88; Self-employment tax as % of net profit: 11.83%; Quarterly set-aside for SE tax: $7,393.35 |
FAQ
What is the self-employment tax rate for 2026?
15.3% of 92.35% of net profit: 12.4% social security up to $184,500 of combined wages and earnings, and 2.9% Medicare with no cap.
Why is self-employment tax 15.3%?
A self-employed person pays both the employee and employer halves of social security (6.2% each) and Medicare (1.45% each).
Is self-employment tax the same as income tax?
No. Self-employment tax pays for social security and Medicare, is figured on Schedule SE and is owed in addition to income tax.
Can I deduct self-employment tax?
You can deduct half of it on Schedule 1 (Schedule SE line 13). That reduces income tax, not the self-employment tax.
Do W-2 wages change my self-employment tax?
Yes. Wages subject to social security tax use up the $184,500 base first, so less of your profit is charged the 12.4% part.
When is there no self-employment tax?
When net earnings after the 92.35% adjustment are under $400, or you have a loss.