Use this free self-employment tax calculator to estimate the Social Security and Medicare tax you owe on your business profit as a sole proprietor, freelancer, or single-member LLC owner. It follows the same steps as IRS Schedule SE and also shows the deduction you can take for half of the tax.
Self-Employment Tax Calculator
Enter your yearly numbers in U.S. dollars.
Estimate only. This does not include income tax or the 0.9% Additional Medicare Tax that applies to higher incomes. Check your final numbers on Schedule SE or with a tax professional.
How Self-Employment Tax Is Calculated
Self-employment tax is how self-employed people pay Social Security and Medicare tax. Employees split these taxes with their employer, but when you work for yourself, you pay both parts. The calculator follows these steps:
- Find your net earnings from self-employment. Multiply your net profit by 92.35%. If the result is less than $400, you generally do not owe self-employment tax.
- Apply the Social Security part. The rate is 12.4%, but it only applies up to the yearly wage base: $192,300 for 2027, $184,500 for 2026, and $176,100 for 2025. If you also earn W-2 wages, those wages count toward the same limit.
- Apply the Medicare part. The rate is 2.9% on all of your net earnings, with no limit.
- Add the two parts together. The total is your self-employment tax. Together, the full rate is 15.3%.
You can then deduct half of your self-employment tax when you figure your adjusted gross income. This lowers your income tax, but it does not reduce the self-employment tax itself.
Example
A sole proprietor has $80,000 in net profit for 2026 and no W-2 wages.
- Net earnings from self-employment: $80,000 × 92.35% = $73,880
- Social Security part: $73,880 × 12.4% = $9,161.12
- Medicare part: $73,880 × 2.9% = $2,142.52
- Total self-employment tax: $9,161.12 + $2,142.52 = $11,303.64
- Deduction for half of the tax: $11,303.64 ÷ 2 = $5,651.82
What This Calculator Does Not Include
- Income tax. Self-employment tax is separate from the federal and state income tax you may also owe on your profit.
- The Additional Medicare Tax. An extra 0.9% Medicare tax can apply when your combined wages and self-employment income are above $200,000 for most single filers, $250,000 for married couples filing jointly, or $125,000 for married individuals filing separately.
- Special situations, such as church employee income, farm income, or optional methods on Schedule SE.
For the official rules, see the IRS page on self-employment tax. For a plain-English walkthrough, read our guide to self-employment tax for small business owners. If you expect to owe tax for the year, our guide to estimated taxes explains how to pay during the year.
Frequently Asked Questions
What is the self-employment tax rate?
The rate is 15.3%: 12.4% for Social Security and 2.9% for Medicare. It applies to 92.35% of your net profit, not the full amount.
Who has to pay self-employment tax?
In general, you must pay it if your net earnings from self-employment are $400 or more for the year. This includes most sole proprietors, freelancers, independent contractors, and members of LLCs taxed as sole proprietorships or partnerships.
Why only 92.35% of my profit?
92.35% is 100% minus 7.65%, which is the employer half of the 15.3% rate. Employers do not pay payroll tax on their own share of the tax, so this adjustment treats self-employed people in a similar way.
Do W-2 wages change my self-employment tax?
They can. Your W-2 wages count toward the yearly Social Security wage base first. If your wages and net earnings together go over the limit, you pay the 12.4% part on less of your self-employment income. The 2.9% Medicare part still applies to all of it.
This calculator provides estimates for planning purposes only. It is not tax advice. Confirm your final numbers on Schedule SE or with a qualified tax professional.