Self-Employment Tax Calculator
Estimate Social Security and Medicare tax on your net self-employment profit. Live updates—for planning only, not filing advice.
Calculator
Profit after business expenses (Schedule C–style net), not gross sales.
Results
Estimated self-employment tax
$10,597.16
SE taxable base (92.35%)
$69,262.50
Deductible employer-equivalent half
$5,298.58
Often deductible when figuring income tax (confirm current rules)
Effective SE rate on net
14.13%
What this means
SE tax is a meaningful slice of net earnings. Combine with income tax when planning quarterly reserves.
Copy Summary to paste the write-up. Copy Link for the same numbers every time. No login, no setup—just copy and go.
Self-Employment Tax Summary
US self-employment tax is typically 15.3% applied to 92.35% of net earnings (under the Social Security wage base). This calculator estimates that SE tax and the employer-equivalent half often used in income-tax planning.
Explanation
Estimated self-employment tax is your planning figure for SE tax on the profit you entered.
SE taxable base is 92.35% of net earnings.
Employer-equivalent half is half of SE tax—often relevant when estimating income tax deductions (confirm current IRS rules).
Business implication: forgetting SE tax is a common reason freelancers under-save for quarterly payments.
Step-by-step example
Net earnings $75,000:
- SE base: $75,000 × 0.9235 = $69,262.50
- SE tax: $69,262.50 × 0.153 ≈ $10,597.16
- Half: ≈ $5,298.58
Formula
SE taxable income = Net earnings × 0.9235
SE tax = SE taxable income × 0.153
Employer-equivalent half = SE tax ÷ 2
Helpful tips
- Transfer SE + income tax estimates to a separate tax savings account each month.
- Pair with the Quarterly Tax Reserve Calculator so cash is ready for 1040-ES dates.
- If you have employees or a different entity type, SE rules may not apply the same way—get professional advice.
FAQ
What is self-employment tax?
In the United States, self-employment tax covers Social Security and Medicare for people who work for themselves. It is separate from income tax and is commonly 15.3% on a defined base of net earnings.
Why multiply by 92.35%?
IRS rules generally apply SE tax to 92.35% of net earnings (reflecting the employer-equivalent half). This calculator follows that widely used baseline for planning.
Does this include the Social Security wage base?
This version assumes net earnings stay under the annual Social Security wage base. High earners may owe Medicare on more income while Social Security stops above the cap. Confirm official IRS limits for your year.
Is this tax advice?
No. It is an educational estimate for freelancers and small businesses. Tax law changes, and your situation may differ—use IRS guidance or a qualified tax professional for filing.
Related tools
Key terms
Self-employment tax
Definition. U.S. Social Security and Medicare taxes paid by self-employed people on net earnings from self-employment.
In simple terms. Employees split FICA with their employer. Freelancers generally pay both sides (with deductions and rules that change—verify with IRS guidance or a tax pro).
Often estimated from net self-employment income × applicable SE tax rates
Example. Many owners reserve roughly 15% of profit as a starting SE-tax ballpark, then refine with real forms and credits.
Common mistake. Only budgeting income tax and forgetting SE tax until quarterly payments are due.
Related calculators. Self-Employment Tax Calculator, Quarterly Tax Reserve Calculator
Related terms. Quarterly tax reserve, Estimated tax, After-tax income
Estimated tax
Definition. Advance payments of income tax (and often self-employment tax) made during the year when withholding is not enough.
In simple terms. The IRS expects tax to be paid as you earn. Freelancers commonly use quarterly estimated payments based on projected profit.
Varies—often based on projected taxable income and prior-year safe harbors
Example. A profitable sole prop with little withholding may send four estimated payments instead of waiting until filing season.
Common mistake. Skipping estimates when you had a large prior-year liability and triggering underpayment penalties.
Related calculators. Estimated Tax Calculator, Quarterly Tax Reserve Calculator
Related terms. Quarterly tax reserve, Self-employment tax
Quarterly tax reserve
Definition. Money set aside during the year so estimated tax payments and year-end balances are less painful.
In simple terms. Independent businesses often owe tax throughout the year. A reserve turns irregular income into a predictable habit instead of a April surprise.
Reserve ≈ expected annual tax ÷ number of set-aside periods (e.g. 4)
Example. If you expect $12,000 of tax for the year, reserving about $3,000 per quarter (or a % of each payout) keeps you closer to current.
Common mistake. Spending every invoice and hoping future months cover last quarter’s tax.
Related calculators. Quarterly Tax Reserve Calculator, Estimated Tax Calculator
Related terms. Estimated tax, Self-employment tax, After-tax income
Notes & Assumptions
Based on commonly published US SE tax structure (15.3% on 92.35% of net earnings). Confirm current figures with IRS self-employment tax guidance.
Last reviewed: July 2026