Self-Employment Tax Calculator

How self-employment tax works

When you work for yourself, you pay both the employer and employee share of Social Security and Medicare — a combined 15.3%. It's calculated on 92.35% of your net profit (revenue minus business expenses), with the Social Security portion capped at the annual wage base.

SE tax = 92.35% of net profit × 15.3%

You can deduct half of your SE tax against your income tax, which lowers your overall bill. On top of SE tax you still owe federal income tax on your profit.

Filing 1099 income with no withholding? 1099 tax calculator.

Self-employment tax FAQ

What is the self-employment tax rate?

Self-employment tax is 15.3%: 12.4% for Social Security (up to the $184,500 wage base in 2026) plus 2.9% for Medicare. You pay both the employer and employee halves because you work for yourself.

How is self-employment tax calculated?

Multiply your net profit by 92.35% to get net earnings from self-employment, then multiply that by 15.3%. Earnings above the Social Security wage base only owe the 2.9% Medicare portion.

Can I deduct self-employment tax?

Yes. You can deduct half of your self-employment tax when figuring your adjusted gross income, which lowers your federal income tax. This calculator applies that deduction automatically.

Do I need to pay quarterly estimated taxes?

Generally yes, if you expect to owe $1,000 or more for the year. Estimated payments are usually due April 15, June 15, September 15 and January 15 of the following year.