TaxTools

Self-Employment Tax Calculator

The 15.3% tax freelancers and sole proprietors pay in place of employer-withheld payroll tax.

Net self-employment profit

Social Security wage base

This annual cap changes yearly — update it to the current year's figure for accuracy.

Total self-employment tax

$11,304

Social Security portion (12.4%): $9,161
Medicare portion (2.9%): $2,143

What you entered

Net profit: $80,000Social Security wage base: $168,600

1
Taxable net earnings (92.35% of net profit)
$80,000.00 × 0.9235= $73,880.00
2
Social Security tax (12.4%, capped at $168,600.00 wage base)
$73,880.00 × 12.4%= $9,161.12
3
Medicare tax (2.9%, no cap)
$73,880.00 × 2.9%= $2,142.52
4
Total self-employment tax
$9,161.12 + $2,142.52= $11,303.64

Result

Total self-employment tax: $11,304

On $80,000 of net profit, self-employment tax comes to $11,304 — remember that half of this is typically deductible on your income tax return.

US self-employment tax by net profit

Self-employment tax applies to 92.35% of net profit: 12.4% Social Security up to the wage base, plus 2.9% Medicare with no cap. These rows use a $168,600 wage base.

Net profit	Taxable earnings	Social Security	Medicare	Total tax	Effective rate
$20,000	$18,470	$2,290	$536	$2,826	14.13%
$40,000	$36,940	$4,581	$1,071	$5,652	14.13%
$60,000	$55,410	$6,871	$1,607	$8,478	14.13%
$80,000	$73,880	$9,161	$2,143	$11,304	14.13%
$100,000	$92,350	$11,451	$2,678	$14,130	14.13%
$150,000	$138,525	$17,177	$4,017	$21,194	14.13%
$200,000	$184,700	$20,906	$5,356	$26,263	13.13%

The effective rate is flat at 14.13% until profit passes the Social Security wage base, then falls, because the 12.4% portion stops while the 2.9% Medicare portion continues without limit. That is why the $200,000 row is the only one that differs. Two things this does not include: income tax, which is separate and additional, and the deduction for one half of self-employment tax when computing adjusted gross income, which lowers the overall burden. The wage base is set annually and rates can change, so enter the current year's figure rather than relying on the default. Illustrative only - not tax advice.

Why the 92.35% adjustment

Employees split Social Security and Medicare tax with their employer, effectively only paying tax on the money they actually take home. Self-employed people get an equivalent break by only owing tax on 92.35% of net profit, not the full amount.

The wage base changes every year

The Social Security portion only applies up to an annual wage base that's adjusted for inflation — always update it to the current year's published figure rather than relying on a stale default.

Deducting half of SE tax

You can deduct the employer-equivalent half of your SE tax (7.65%) as an above-the-line adjustment on your 1040, even if you don't itemize. On $100,000 net profit, SE tax is about $14,130. You deduct roughly $7,065, reducing your adjusted gross income and your income tax — a savings most freelancers overlook.

Quarterly estimated payments

Self-employment tax isn't withheld from a paycheck, so you owe it in quarterly estimated payments (April 15, June 15, September 15, January 15). Underpaying by more than $1,000 triggers an IRS underpayment penalty. Use this calculator each quarter to stay ahead.

Frequently asked questions

How much is self-employment tax in 2024?

The combined SE tax rate is 15.3%: 12.4% for Social Security (on the first $168,600 of net earnings in 2024) plus 2.9% for Medicare (no cap). An additional 0.9% Medicare surtax applies on net self-employment income above $200,000 ($250,000 married filing jointly).

What income is subject to self-employment tax?

Net earnings from self-employment — 1099 freelance income, sole proprietorship profit, partnership distributive shares, and certain LLC income. W-2 wages, rental income (in most cases), interest, dividends, and capital gains are NOT subject to SE tax.

Why do I owe 15.3% when employees only pay 7.65%?

Employees pay the 'employee half' (7.65%) while their employer pays the other 7.65%. As a self-employed person you're both employer and employee, so you pay both halves. The 92.35% adjustment and the income-tax deduction for half the SE tax partially offset this.