Self-Employment Tax Calculator
Estimate self-employment tax (Social Security + Medicare) on net business profit, with the net-earnings factor and Social Security wage base as editable assumptions.
How to use this tool
- Enter your net self-employment profit (receipts minus deductible expenses).
- Confirm or update the net-earnings factor, Social Security and Medicare rates, and wage base.
- Read your total SE tax, its Social Security and Medicare parts, and the deductible half.
Estimate the Social Security and Medicare tax you owe as a self-employed worker. Enter your net business profit; the rates, net-earnings factor, and wage base are editable so the result stays accurate for your tax year and country.
Formula
Taxable base = Net profit × Net earnings factor (US: 92.35%)
Social Security = min(base, wage base) × Social Security rate
Medicare = base × Medicare rate (no cap)
SE tax = Social Security + Medicare | Deductible half = SE tax ÷ 2
How it works
Self-employed workers pay both the employee and employer share of Social Security and Medicare, collectively called self-employment (SE) tax. The calculation first multiplies net business profit by a net-earnings factor (92.35% in the United States, which removes the employer-equivalent half before the rate is applied). Social Security is then charged up to an annual wage base, while Medicare applies to the full taxable base with no cap.
Every rate and threshold here is an editable field with a US default, so the tool generalizes across tax years and jurisdictions: update the Social Security rate, Medicare rate, net-earnings factor, and wage base to match your authority's current figures. Half of the SE tax is generally deductible against income tax — shown here for planning. This estimate excludes the Additional Medicare Tax on high earners and any income-tax owed on the same profit.
Reviewed by the AbraCalc Tax Desk. Educational estimate only, not tax advice; verify current rates and the wage base with your tax authority (for the United States, the IRS).
Worked example
$50,000 net profit (US defaults)
- Taxable base = 50,000 × 92.35% = 46,175.
- Base is below the wage base, so Social Security = 46,175 × 12.4% = 5,725.70.
- Medicare = 46,175 × 2.9% = 1,339.075.
- Self-employment tax = 5,725.70 + 1,339.075 = 7,064.775.
- Deductible half = 7,064.775 ÷ 2 = 3,532.3875.
Self-employment tax = $7,064.78 (Social Security $5,725.70 + Medicare $1,339.08)
Self-employment tax by net profit (US 2024 defaults)
| Net profit | Taxable base (92.35%) | SE tax | Deductible half |
|---|---|---|---|
| $10,000 | $9,235 | $1,412.96 | $706.48 |
| $25,000 | $23,087.50 | $3,532.39 | $1,766.19 |
| $50,000 | $46,175 | $7,064.78 | $3,532.39 |
| $75,000 | $69,262.50 | $10,597.16 | $5,298.58 |
| $100,000 | $92,350 | $14,129.55 | $7,064.78 |
| $168,600 | $155,702.10 | $23,822.42 | $11,911.21 |
| $200,000 | $184,700 | $26,262.70 | $13,131.35 |
Key terms
- Self-employment tax
- The Social Security and Medicare tax paid by self-employed people, covering both employer and employee shares.
- Net earnings factor
- The 92.35% multiplier applied to net profit before SE tax, reflecting the deduction of the employer-equivalent half.
- Social Security wage base
- The annual cap on earnings subject to the Social Security portion ($168,600 in the US for 2024).
- Deductible half
- Half of SE tax that can generally be deducted when computing income tax.
Frequently asked questions
- Why is only 92.35% of my profit taxed?
- The net-earnings factor (92.35% in the US) removes the employer-equivalent half of the tax before applying the rate, mirroring how employees are not taxed on their employer's share. It equals 100% minus half of the 15.3% combined rate.
- Does Social Security tax stop above a certain income?
- Yes. The Social Security portion only applies up to the annual wage base ($168,600 in the US for 2024). Medicare has no cap and applies to all taxable net earnings.
- Can I deduct any of the self-employment tax?
- Generally you can deduct one half of your SE tax when calculating income tax. This calculator shows that deductible half, but it is not income-tax advice.