Self-Employment Tax Calculator
Values shown are examples. The wage base is the only figure here that changes yearly, which is why it is an input. Everything else is fixed by statute: 92.35% of profit is subject to the tax, 12.4% funds Social Security up to the base, 2.9% funds Medicare with no ceiling, and 0.9% is added above $200,000 single or $250,000 joint.
| Total for the Year | $0 |
| Set Aside Each Quarter | $0 |
| Set Aside Each Month | $0 |
| Effective Rate on Profit | n/a |
| Net Earnings Subject to the Tax | $0 |
| Social Security, 12.4% | $0 |
| Medicare, 2.9% | $0 |
| Additional Medicare, 0.9% | $0 |
| Half Deductible Against Income Tax | $0 |
| Income Tax That Deduction Saves | $0 |
| Real Cost After the Deduction | $0 |
For illustration only, not financial advice. Results are estimates based on the numbers you enter and do not constitute an offer, rate quote or approval.
How this is worked out
Net profit from self employment is multiplied by 0.9235 to get net earnings, because the employer half of the tax is not itself taxed (26 U.S.C. 1402(a)(12)).
Net earnings then pay 12.4% to Social Security up to the annual wage base, and 2.9% to Medicare with no ceiling (26 U.S.C. 1401). An extra 0.9% Medicare applies above $200,000 single or $250,000 filing jointly, and those two thresholds have never been indexed.
W-2 wages you also earned use up the Social Security wage base first, which is why entering them lowers the Social Security line without touching Medicare. Half the total is deductible against income tax (26 U.S.C. 164(f)), so the real cost is lower than the headline number.
