Self-Employment Tax Calculator
Estimate your 2025 self-employment tax from your net profit, broken into Social Security and Medicare, plus the deduction for half.
Reviewed by the CalcCafe editorial team · Last updated 1 July 2026 · How we test our tools
Example
On $60,000 of net profit, 92.35% is $55,410 of net earnings. Social Security is 12.4% of that = $6,871, and Medicare is 2.9% = $1,607, for a total self-employment tax of about $8,478. You can deduct half of it, roughly $4,239, when figuring your income tax.
How it works
Net earnings = net profit × 0.9235. Self-employment tax = 12.4% × min(net earnings, $176,100 Social Security wage base) + 2.9% × net earnings. The income-tax deduction equals half of the total SE tax.
Good to know
Self-employment tax is how freelancers, sole proprietors, and independent contractors pay into Social Security and Medicare — the same programs a traditional job funds through payroll withholding. Because there is no employer to split the bill, you cover both the employee and employer shares, which is why the headline rate is 15.3% rather than the 7.65% a W-2 worker sees on their paycheck.
The tax is not levied on your full profit. First you multiply net profit by 0.9235 (which removes the employer-equivalent portion), and the result is your net earnings from self-employment. Social Security tax of 12.4% applies only up to the annual wage base — $176,100 for 2025 — so earnings above that cap are free of the Social Security piece. Medicare's 2.9% has no ceiling and applies to every dollar of net earnings; very high earners may also owe an Additional Medicare Tax that this estimate does not include.
One softening feature: you may deduct half of your self-employment tax when calculating your adjusted gross income. That deduction lowers your income tax, though it does not reduce the SE tax itself. This calculator shows that half so you can carry it into your 1040 planning.
Treat the figure as a planning estimate, not a filing. It ignores the Additional Medicare Tax, the qualified business income deduction, state taxes, church-employee rules, and situations where wages from a separate job have already used part of the Social Security wage base. For anything you file, run the numbers on Schedule SE or check with a tax professional.
Frequently asked questions
Who has to pay self-employment tax?
Generally anyone with $400 or more in net earnings from self-employment — freelancers, gig workers, sole proprietors, and most partners. It covers your Social Security and Medicare contributions since no employer withholds them for you.
Why is the tax based on 92.35% of profit?
Multiplying net profit by 0.9235 removes the employer-equivalent portion of the tax, mirroring how an employee's wages exclude the employer's share of FICA before the tax is applied. The 15.3% rate then applies to that adjusted amount.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser. Your inputs never leave your device, and it works offline once loaded.
Is this calculator free?
Yes, completely free with no sign-up and no limits.
People also ask
How much is self-employment tax in 2025?
The combined rate is 15.3% — 12.4% for Social Security up to the $176,100 wage base and 2.9% for Medicare with no cap — applied to 92.35% of your net profit.
Can I deduct self-employment tax?
You can deduct half of your self-employment tax from your gross income when figuring income tax. It reduces your taxable income but not the SE tax you owe; this tool shows that deductible half.
Is self-employment tax the same as income tax?
No. Self-employment tax funds Social Security and Medicare, while income tax is separate and based on your taxable income. Most self-employed people owe both on their earnings.
Related calculators
Sources & references
These tools follow our methodology and provide educational estimates only — verify important figures with a qualified professional.