Calculator
Estimate Social Security and Medicare taxes on self-employment income using the usual 92.35% net earnings adjustment and the Social Security wage base cap.
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How is self-employment tax calculated?
First, net profit is multiplied by 92.35% to estimate net earnings subject to SE tax. Then the Social Security part is taxed at 12.4% up to the wage base, and Medicare is taxed at 2.9%.
What is the half-SE-tax deduction?
You can usually deduct half of your self-employment tax as an adjustment to income. This does not reduce SE tax itself, but it may reduce income tax.
Does this include Additional Medicare Tax?
No. This calculator keeps the estimate simple and does not add the high-income Additional Medicare Tax.
How this self-employment tax calculator works
This calculator estimates self-employment tax from annual net profit. It multiplies net profit by 92.35% to estimate net earnings subject to self-employment tax, applies the Social Security portion up to the wage base, applies Medicare tax to net earnings, and shows the estimated half-SE-tax deduction.
Net profit
Use estimated Schedule C net profit after ordinary business expenses. This is different from gross revenue because expenses reduce the profit used for the estimate.
Social Security portion
The Social Security part is estimated at 12.4% of net earnings, limited by the Social Security wage base after any W-2 wages already counted.
Medicare portion
The Medicare part is estimated at 2.9% of net earnings in this simplified calculator. Additional Medicare Tax is not included.
What net profit means
Net profit is business income after business expenses. For many sole proprietors and freelancers, this is the profit number that flows from Schedule C. If you earned $60,000 from clients and had $10,000 of ordinary business expenses, your estimated net profit would be $50,000.
Do not enter gross revenue unless you have no business expenses. If you enter revenue instead of profit, the calculator may overstate self-employment tax.
Why 92.35% of net profit is used
Self-employment tax is generally calculated on net earnings from self-employment, not directly on 100% of net profit. A common simplified way to estimate net earnings is to multiply net profit by 92.35%.
The calculator uses that 92.35% adjustment before applying the Social Security and Medicare portions. This mirrors the usual self-employment tax worksheet structure, while keeping the page simple enough for quick planning.
What the half-SE-tax deduction means
The half-SE-tax deduction is an income-tax deduction equal to half of estimated self-employment tax. It does not reduce self-employment tax itself. Instead, it may reduce income subject to regular federal income tax.
This calculator shows the deduction estimate separately because it is useful when comparing 1099 income, estimating federal income tax, or planning quarterly payments.
Example: estimating self-employment tax
If a freelancer has $50,000 of net profit, the calculator first estimates net earnings by multiplying by 92.35%. It then applies the 12.4% Social Security portion up to the wage base and the 2.9% Medicare portion to net earnings. The result is the estimated self-employment tax.
If that freelancer also had W-2 wages during the year, those wages can reduce the remaining Social Security wage base available for self-employment income. That is why the calculator includes an optional W-2 wages field.
What this estimate does not include
This calculator estimates Social Security and Medicare self-employment tax. It does not include regular federal income tax, state income tax, local tax, the qualified business income deduction, tax credits, retirement contributions, health insurance deductions, Additional Medicare Tax, or entity-specific tax rules.
For a fuller contractor estimate, pair this page with the 1099 vs W-2 calculator, federal income tax calculator, and quarterly estimated tax calculator.
Sources and review
This page is based on general U.S. self-employment tax concepts for educational planning. Always confirm important tax decisions with official IRS guidance or a qualified tax professional.
- IRS self-employment tax guidance
- IRS Schedule SE information
- Social Security contribution and benefit base
- TheDailyo educational-use disclaimer
Last reviewed: May 4, 2026.
FAQ
Is self-employment tax the same as income tax?
No. Self-employment tax covers Social Security and Medicare taxes for self-employed income. Regular federal income tax is separate and may also apply to the same business profit.
Do business expenses reduce self-employment tax?
Yes, ordinary business expenses can reduce net profit, and net profit is the starting point for this estimate. That is why the calculator asks for net profit rather than gross revenue.
Why enter W-2 wages?
W-2 wages can use up part or all of the Social Security wage base. If you had employee wages and self-employed income in the same year, entering W-2 wages can make the Social Security portion estimate more realistic.
Does this calculate quarterly payments?
No. This page estimates self-employment tax only. Use the quarterly estimated tax calculator to split an annual tax estimate into simple quarterly payments.