Taxes

Self-Employment Tax Calculator

Self-employment tax covers the Social Security and Medicare contributions an employer would normally split with you. Enter your net profit to estimate it, including the deductible half.

Net self-employment profit (per year)

Revenue minus business expenses.

SE tax applies to 92.35% of your net profit: 12.4% Social Security (up to the $184,500 2026 wage base) plus 2.9% Medicare on the full amount.

Estimated self-employment tax

Taxable base (92.35%)
Social Security (12.4%)
Medicare (2.9%)
Deductible half

This is in addition to federal and state income tax. You can deduct half of this SE tax against your income, which lowers your income-tax bill (not the SE tax itself).

This calculator gives a simplified estimate for educational purposes and uses approximate figures. It is not tax or financial advice and does not account for every rule, credit, or your full situation. Confirm specifics with a qualified professional. See our full disclaimer.

How self-employment tax is calculated

Self-employment (SE) tax is the freelancer's version of the Social Security and Medicare taxes that come out of an employee's paycheck. The difference is that an employee splits these taxes with their employer — each paying 7.65% — while a self-employed person is both the employer and the employee, and so pays the full 15.3%. This calculator estimates that figure from your net profit.

The tax is not applied to your full profit. First, your net earnings are multiplied by 92.35%, which removes the notional "employer half" from the taxable base. That adjusted figure is then hit with 12.4% for Social Security and 2.9% for Medicare. The Social Security portion only applies up to an annual wage base limit that rises most years, while the Medicare portion has no ceiling.

It is separate from income tax

A common surprise for first-year freelancers is discovering that SE tax is entirely separate from income tax. You owe both. Income tax is calculated using your tax bracket; SE tax funds Social Security and Medicare and is added on top. This is the single biggest reason a freelancer's total tax bill is larger than an employee earning the same amount expects.

The deductible half

There is one piece of relief built in: you can deduct one half of your self-employment tax as an above-the-line adjustment to income. This does not reduce the SE tax itself, but it lowers the income on which your regular income tax is calculated. The calculator shows this deductible half so you can see the real effect.

A worked example

If you net $60,000 after expenses, the taxable base is about $55,410 (that is 92.35% of $60,000). Applying 15.3% gives roughly $8,478 of self-employment tax, of which about $4,239 is deductible against your income. Knowing this number in advance is what lets you set money aside as you earn rather than facing a shock at filing time.

Frequently asked questions

What is self-employment tax?

It is the Social Security (12.4%) and Medicare (2.9%) tax that self-employed people pay — a combined 15.3%. As an employee, you and your employer split this; as a freelancer you pay both halves yourself.

Is self-employment tax the same as income tax?

No. Self-employment tax funds Social Security and Medicare and is separate from, and in addition to, the federal and state income tax you owe on your profit.

What does the 92.35% adjustment mean?

SE tax applies to 92.35% of your net profit, not the full amount. This adjustment roughly mirrors the employer-side deduction a company would take, so you are not taxed on the portion that represents the "employer half".

Can I deduct any of it?

Yes. You can deduct one half of your self-employment tax as an adjustment to income. It does not lower the SE tax itself, but it reduces the income your income tax is calculated on.