In Short
Self-employment tax is 15.3% of 92.35% of your net profit: 12.4% for Social Security up to the wage base ($184,500 for 2026) and 2.9% for Medicare on all of it [1][2]. On $60,000 of profit that is $8,478 for 2026, and half of it, $4,239, is deducted from income for income tax. Above $200,000 single ($250,000 joint), another 0.9% Additional Medicare tax applies [4].
How to Use the Self-Employment Tax Calculator
- Enter your net business profit: Schedule C income minus business expenses.
- Add W-2 wages if you also have a job; they count toward the Social Security wage base.
- Pick your filing status, which sets the Additional Medicare threshold.
- Or tap Say It All: “My profit was 60 thousand and I also got 40,000 in wages from my job.”
The Formula
Schedule SE first takes 7.65% off your profit (the share an employer would deduct), then applies both halves of Social Security and Medicare.
- Net earnings = net profit × 92.35%
- Social Security = 12.4% × the smaller of net earnings and (wage base − W-2 wages)
- Medicare = 2.9% × net earnings
- Additional Medicare = 0.9% × (net earnings − (threshold − W-2 wages)), when positive
- Deductible half = (Social Security + Medicare) ÷ 2
- No SE tax when net earnings are under $400
Worked Examples
| Scenario | Inputs | Result |
|---|---|---|
| Freelancer, 2026 | $50,000 profit | Net earnings $46,175 · SE tax $7,065 · deductible half $3,532 |
| Consultant, 2026 | $100,000 profit | Net earnings $92,350 · Social Security $11,451 · Medicare $2,678 · total $14,130 |
| High earner, 2026 | $200,000 profit, single | Net earnings $184,700 · Social Security capped at $184,500 → $22,878 · Medicare $5,356 · total $28,234 |
| Side business plus a job, single, 2026 | $150,000 profit, $120,000 W-2 wages | Social Security only on $64,500 → $7,998 · Medicare $4,017 · Additional Medicare $527 · total $12,542 |
Illustrative examples, not projections. Figures use the tax year shown and the assumptions above.
What Is Self-Employment Tax?
It is Social Security and Medicare tax for people who work for themselves [1]. Employees split these taxes with their employer, 7.65% each. When you are the business, you pay both halves, 15.3%, on Schedule SE with your Form 1040 [2].
It applies to sole proprietors, independent contractors, single-member LLCs and partners, once net earnings reach $400 in a year [2]. It is separate from income tax: you owe it even when your income is too low to owe income tax.
Why Is Self-Employment Tax Figured on 92.35% of Profit?
An employer deducts its half of payroll taxes as a business expense. To match that, Schedule SE first reduces your profit by 7.65%, so 100% − 7.65% = 92.35% of profit is taxed [2]. Then, on your income tax return, you deduct half of the SE tax itself, which lowers income tax but not the SE tax.
How Does the Social Security Wage Base Work?
The 12.4% Social Security part stops at the wage base: $184,500 for 2026 and $176,100 for 2025 [3]. Wages from a job count first, so a person with $120,000 of W-2 wages pays the 12.4% on only $64,500 of self-employment earnings in 2026 [2]. The 2.9% Medicare part has no cap.
The 0.9% Additional Medicare tax starts at $200,000 for single filers, $250,000 for joint filers and $125,000 for married filing separately, counting wages first [4]. It is reported on Form 8959 and is not part of the deductible half [5].
Frequently Asked Questions
How much is self-employment tax on $50,000?
$7,065 for 2026: $50,000 × 92.35% = $46,175 of net earnings, times 15.3%. Half of it, $3,532, is deducted from income for income tax.
How much is self-employment tax on $100,000?
$14,130 for 2026: $92,350 of net earnings × 15.3%, made up of $11,451 of Social Security and $2,678 of Medicare.
Is self-employment tax 15.3% of all my income?
No. It is 15.3% of 92.35% of net profit, so the effective rate on profit is about 14.13%, and the 12.4% part stops at the Social Security wage base [2].
Can I deduct self-employment tax?
Half of it, as an adjustment to income on Schedule 1. That lowers your income tax, not the SE tax itself [1].
Do I pay self-employment tax if I also have a W-2 job?
Yes, on your self-employment profit. Your wages count toward the Social Security wage base first, so on high combined income the 12.4% part can stop early [2].
Sources
- Self-Employment Tax (Social Security and Medicare Taxes) — Internal Revenue Service
- Instructions for Schedule SE (Form 1040) — Internal Revenue Service
- Topic no. 751, Social Security and Medicare withholding rates (2026 wage base) — Internal Revenue Service
- Questions and Answers for the Additional Medicare Tax — Internal Revenue Service
- About Form 8959, Additional Medicare Tax — Internal Revenue Service
Official sources only: the IRS, SSA, BLS and other government agencies. Read how Zentavos researches.