Self-Employment Tax Calculator

Estimate self-employment tax and income tax on your business profit. Revenue minus deductible expenses gives profit; the calculator separates social-security/Medicare contributions from income tax and deducts half the SE tax.

Written by the CalcBundle Research & Editorial Team · Reviewed by the Quality Review Team · Transparent formulas · results are estimates, not advice. · Updated September 2026

Total estimated tax

Self-employment taxest

Income taxest

Total tax

After-tax income

Profit → contributions → income tax
Business profit	$0
SE Social Security	$0
SE Medicare	$0
Taxable income	$0
Income tax	$0
Total estimated tax	$0

Effective tax rate on total income: 0.0%. Only your business profit (revenue − expenses) is taxed, not gross revenue.

Based on United States (Federal) rules for tax year 2025.

Quick Answer

How is self-employment tax calculated?

Self-employment tax covers both halves of Social Security and Medicare that an employer normally splits with employees. The rate is 15.3%: 12.4% Social Security (on the first $176,100 of net SE income in 2025) plus 2.9% Medicare on all net income. The taxable base is 92.35% of net profit — a built-in deduction that accounts for the employer-equivalent portion. A freelancer with $100,000 net profit pays SE tax on $92,350, producing approximately $14,130 in SE tax. Half of that amount ($7,065) is then deductible from gross income on Form 1040, reducing the income tax owed. On top of SE tax, regular income tax brackets apply to the remaining taxable income. Both liabilities are paid quarterly via estimated tax payments — underpaying triggers an IRS penalty. This calculator separates the two taxes and shows the half-SE-tax deduction so you can see your total federal tax burden as a self-employed worker.

What a self-employment tax calculator does

When you work for yourself — as a freelancer, contractor, consultant or small-business owner — no employer withholds tax from your pay, and you owe a tax that salaried workers never see in full. A self-employment tax calculator estimates that tax alongside your income tax so you know the total the government expects, not just one piece of it. It starts from your business profit, separates the Social Security and Medicare contributions from ordinary income tax, and applies the deductions that keep the two from double-counting.

Start with profit, not revenue

The single most important idea in self-employment tax is that it applies to net profit, defined as revenue minus your deductible business expenses — software, equipment, mileage, a home-office share, professional fees and the like. Your gross receipts are never taxed directly. Getting your expenses right is therefore not just bookkeeping; every legitimate dollar of expense removes that dollar from both self-employment tax and income tax.

How the self-employment tax is built

In the US the self-employment tax is the combined 15.3% Social Security (12.4%) and Medicare (2.9%) rate — the employee and employer halves together, because you are both. Two features soften it: the tax is applied to 92.35% of net profit rather than the whole amount, and the Social Security portion stops at an annual wage base while Medicare continues on all profit. The result is the figure the calculator labels as your self-employment tax.

Then income tax on top

Self-employment tax is not the end. Your profit also flows into ordinary income tax, but with an adjustment: half of the self-employment tax is deductible against your taxable income, so you are not taxed twice on the same money. After that deduction and your standard deduction, the remaining income is taxed through the progressive income tax brackets. Keeping the two taxes separate — and applying the half deduction — is exactly what this calculator automates.

Worked example

Suppose you earn $95,000 in freelance revenue and have $20,000 of deductible expenses, leaving $75,000 of net profit. Self-employment tax is charged on 92.35% of that profit at 15.3%, which comes to roughly $10,600. Half of that (about $5,300) is then deducted before your income tax is figured, so your income-tax base is lower than the raw profit. The calculator shows both taxes and the after-tax income so you can see the full obligation at a glance.

Plan the payments, not just the total

Because no employer withholds for you, this tax is usually paid in four estimated instalments during the year. Once you know the annual figure here, turn it into dated payments with the quarterly tax calculator; if your income arrives on a 1099, the 1099 tax calculator combines the same pieces for a contractor's specific situation.

Frequently asked questions

What is self-employment tax?

In the US it is the Social Security and Medicare tax that self-employed people pay on their net business profit — covering both the employee and employer halves. An employee splits this cost with their employer; when you work for yourself you are both, so you pay the full amount. It is separate from, and on top of, federal income tax.

Why do the self-employed pay more than employees?

An employee pays 7.65% of wages toward Social Security and Medicare while the employer quietly pays a matching 7.65%. A self-employed person has no employer to cover that second half, so they pay the combined 15.3% themselves. To soften it, the tax is charged on 92.35% of net profit and half of the resulting tax is deductible against income tax.

Is my whole revenue taxed?

No — and this is the most common mistake. Only your net profit is taxed: revenue minus deductible business expenses. If you invoice $90,000 but have $30,000 of legitimate expenses, self-employment tax applies to the $60,000 profit, not the $90,000. The calculator computes profit first, then the taxes on it.

Can I deduct part of the self-employment tax?

Yes. Half of the self-employment tax is deductible against your income tax — it reduces your taxable income, not the SE tax itself. This calculator applies that deduction automatically for supported years so your income-tax estimate is not overstated.

Does the Social Security portion stop at some point?

Yes. The 12.4% Social Security portion only applies up to an annual wage base; profit above that cap is no longer subject to Social Security tax, though the 2.9% Medicare portion continues on all profit (with an extra Medicare surtax at high incomes). This is why very high earners see their marginal SE tax rate drop once they pass the cap.

How much should I set aside?

Between self-employment tax and income tax, many independent workers set aside roughly 25–35% of net profit, though your figure depends on your total income, deductions and state. Use this calculator with the quarterly tax calculator to turn that into specific dated payments rather than a year-end surprise.

1099 Tax

Estimate self-employment and income tax on 1099 income, plus a set-aside.

Quarterly Tax

Estimate annual tax and a suggested quarterly estimated payment.

Income Tax

Estimate income tax with a progressive bracket breakdown, marginal and effective rates.

Take-Home Pay

Estimate net pay after income tax, payroll taxes and deductions.

Sources & methodology

Formula: SE Tax = Net SE income × 92.35% × 15.3% (12.4% Social Security on first $176,100 + 2.9% Medicare on all); Deductible half = SE Tax ÷ 2
Reviewed: September 2026

Primary sources

IRC §1401 – Rate of Tax (Self-Employment Tax)Internal Revenue Code section establishing the 15.3% self-employment tax rate (12.4% SS + 2.9% Medicare).
IRC §1402 – Definitions (Net Earnings from Self-Employment)IRS definition of net earnings from self-employment and the 92.35% factor for computing the SE tax base.
IRS Publication 334 – Tax Guide for Small BusinessIRS guidance on self-employment tax computation, the deductible half of SE tax, and Schedule SE.

Calculation methodology is documented on our methodology page. Reviewed by the CalcBundle Quality Review Team.

Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money. Estimates based on the selected tax year and information entered. Not tax advice; state taxes are not included.