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Self-Employment Tax Calculator

See exactly what the 15.3% SE tax means for your 1099 or business income — including the Social Security wage cap, Additional Medicare Tax, and your half-SE deduction.

Your 1099/business income minus business expenses (Schedule C net profit).

Wages from a day job use up the Social Security wage cap first.

Understanding self-employment tax

When you work for an employer, Social Security and Medicare taxes are split: you pay 7.65% and your employer pays 7.65%. When you work for yourself, you pay both halves — 15.3% total — through self-employment tax. It applies whether your income comes from a 1099 contract, a side gig, or your own business, and it's owed in addition to regular income tax.

Three details trip people up. The tax is figured on 92.35% of net profit, not the full amount. The 12.4% Social Security piece stops at the annual wage base — and any W-2 wages you earn count against that cap first. And while Medicare has no cap, high earners owe an extra 0.9% above $200,000 ($250,000 for joint filers).

If this number looks painful, that's usually the moment to look at an S-corp election, retirement contributions, and making sure every legitimate business deduction is on your Schedule C.

Common Questions

What is self-employment tax?
Self-employment tax is how self-employed people pay Social Security (12.4%) and Medicare (2.9%) — the taxes an employer would normally split with you. It totals 15.3% and applies to 92.35% of your net self-employment profit, on top of regular federal income tax.
Why is SE tax calculated on 92.35% of my profit?
The 7.65% reduction mirrors the employer half of FICA that employees never pay tax on. You multiply net profit by 0.9235 to get net earnings from self-employment, then apply the 15.3% rate to that amount.
Do W-2 wages reduce my self-employment tax?
Partially. The 12.4% Social Security portion only applies up to the annual wage base ($176,100 in 2025; $184,500 in 2026), and your W-2 wages use up that cap first. The 2.9% Medicare portion has no cap, and an extra 0.9% applies above $200,000 ($250,000 married filing jointly).
Can I deduct any of my self-employment tax?
Yes — you deduct one-half of the Social Security and Medicare portions of SE tax as an adjustment to income. It reduces your income tax, but not the SE tax itself.
Estimates only — not tax advice. This tool models federal self-employment tax for the selected year. It does not include federal income tax, state taxes, or special situations (church employee income, farm optional methods, etc.). Consult a licensed CPA about your specific situation.

Paying Both Halves Hurts. Planning Helps.

From S-corp elections to retirement strategies, there are legitimate ways to shrink this bill. Let's look at your numbers together — virtually.

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