Self-Employment Tax Calculator
Estimate the Social Security and Medicare tax you owe on your net self-employment income.
What is self-employment tax?
Self-employment tax is how freelancers, independent contractors, and small business owners pay their share of Social Security and Medicare — taxes that employees split with their employer through automatic payroll withholding. Because self-employed workers don't have an employer to cover half, the IRS requires them to pay both the "employee" and "employer" portions themselves, which combine to a 15.3% rate: 12.4% for Social Security and 2.9% for Medicare.
Why is tax calculated on 92.35% of my income, not 100%?
The IRS allows you to reduce your net self-employment income by 7.65% before applying the self-employment tax rate, which is meant to roughly mirror how an employee's payroll tax is calculated on their gross wages before the employer's matching share is added on top. This adjustment slightly lowers your effective SE tax compared to applying 15.3% directly to your full net income, and it's built automatically into every self-employment tax calculation, including this one.
Why does the Social Security portion sometimes stop growing?
The 12.4% Social Security portion only applies up to an annual wage base limit set by the Social Security Administration — income above that threshold is no longer subject to the Social Security portion of SE tax, though the 2.9% Medicare portion continues to apply with no cap (and can even increase for very high earners under the Additional Medicare Tax). This calculator applies that wage base cap automatically. Also remember that you can deduct half of your total self-employment tax as an adjustment to income on your personal tax return, which softens the overall impact somewhat.
Frequently Asked Questions
What is the self-employment tax rate?
The combined rate is 15.3%, made up of 12.4% for Social Security and 2.9% for Medicare, applied to 92.35% of your net self-employment income. This covers both the "employee" and "employer" shares of these payroll taxes since you don't have an employer to split them with.
Why is only 92.35% of my income taxed?
The IRS built in this adjustment to approximate how the tax would be calculated if you were an employee, where payroll tax is based on gross wages before an employer's matching contribution. It slightly reduces your effective self-employment tax compared to applying the rate directly to 100% of net income.
Can I deduct my self-employment tax?
Yes — you can deduct half of your total self-employment tax as an adjustment to income on your personal federal tax return, which reduces your overall taxable income even if you don't itemize deductions.
Does the Social Security portion apply to all my income?
No — the 12.4% Social Security portion only applies up to an annual wage base limit set by the Social Security Administration. Income above that threshold is no longer subject to the Social Security portion, though the 2.9% Medicare portion has no cap and continues to apply.
Is self-employment tax the same as income tax?
No, they're separate. Self-employment tax covers Social Security and Medicare contributions specifically, while federal and state income tax is calculated separately on your total taxable income, including your self-employment earnings. You typically owe both.
Do I need to make quarterly estimated tax payments?
If you expect to owe a meaningful amount in tax as a self-employed individual, the IRS generally expects quarterly estimated payments throughout the year covering both income tax and self-employment tax, rather than paying it all at once when you file.
Does this apply to gig work like rideshare driving or delivery apps?
Yes — if you're classified as an independent contractor rather than an employee, which is typical for rideshare, delivery, and most freelance platform work, your net earnings are generally subject to self-employment tax just like any other self-employed income.
How accurate is this self-employment tax estimate?
It uses the standard IRS self-employment tax formula and the current Social Security wage base, so it should be a close estimate for most straightforward situations. It doesn't account for every edge case, such as multiple sources of wage and self-employment income combined, so consult a tax professional for your exact filing.