Self-Employment Tax Calculator
Estimate your 2026 Social Security and Medicare taxes as a freelancer, contractor, or small business owner.
Your business income
Your estimated tax
Important: This is an estimate, not a tax return. It estimates self-employment tax, not your total federal or state income tax. The Social Security wage limit is shared with applicable W-2 wages. The Additional Medicare Tax calculation is simplified and may differ from your final Form 8959. Special rules may apply to multiple businesses, spouses, clergy, partnerships, and other situations. Consult IRS Schedule SE and a qualified tax professional for filing.
What Is Self-Employment Tax?
Self-employment tax is a federal tax that generally applies to individuals who earn income through self-employment activities. Freelancers, independent contractors, consultants, sole proprietors, and other eligible business owners may need to pay this tax on their net business earnings.
Self-employment tax mainly covers Social Security and Medicare contributions. Unlike traditional employees, self-employed individuals generally pay both the employer and employee portions of these taxes.
How Does a Self-Employment Tax Calculator Work?
A self-employment tax calculator estimates the Social Security and Medicare taxes you may owe based on your business income, deductible expenses, and other applicable wages. It uses your selected tax year and filing status to estimate the relevant tax amounts.
Our Self-Employment Tax Calculator follows these general steps:
- Enter gross business income: Add the total income earned from your self-employment activities.
- Enter business expenses: Include eligible ordinary and necessary business expenses.
- Calculate net business profit: Subtract business expenses from gross business income.
- Calculate taxable self-employment earnings: The calculator applies a 92.35% factor to net business profit.
- Estimate Social Security and Medicare taxes: The calculator applies the relevant rates and Social Security wage limit.
- Estimate Additional Medicare Tax: Your filing status and other Medicare wages are considered in the simplified calculation.
- Display estimated tax: Review your estimated self-employment tax, deduction, remaining profit, and monthly reserve.
How to Calculate Self-Employment Tax
Self-employment tax is calculated using net earnings from self-employment rather than simply applying the tax rates to total business revenue.
Step 1: Calculate Net Business Profit
For example, if your gross business income is $100,000 and your deductible business expenses are $20,000, your net business profit is $80,000.
Step 2: Calculate Net Earnings Subject to Self-Employment Tax
The calculator applies the 92.35% factor to estimate earnings subject to self-employment tax.
Step 3: Calculate Social Security Tax
The calculator applies the combined Social Security tax rate of 12.4% to eligible self-employment earnings, subject to the annual Social Security wage limit. Applicable W-2 Social Security wages are also considered when calculating the remaining wage limit.
Step 4: Calculate Medicare Tax
The calculator applies a combined Medicare tax rate of 2.9% to estimated self-employment earnings. Medicare tax does not use the Social Security wage limit.
Step 5: Calculate Additional Medicare Tax
An additional Medicare tax of 0.9% may apply when combined Medicare wages and self-employment earnings exceed the applicable threshold for your filing status. The calculator uses your filing status and the additional Medicare wages entered.
Step 6: Estimate Total Self-Employment Tax
Understanding Self-Employment Tax Deductions
Self-employed individuals may generally deduct the employer-equivalent portion of their self-employment tax when calculating adjusted gross income for federal income tax purposes, subject to applicable rules.
Our calculator displays an estimate of the deduction for half of self-employment tax. This deduction is not the same as a reduction in the self-employment tax itself.
Social Security Tax vs Medicare Tax
Social Security and Medicare are the two main components of self-employment tax. Both help fund federal benefit programs, but their calculation rules are different.
- Social Security tax: The combined self-employment rate is 12.4%, subject to the annual Social Security wage limit.
- Medicare tax: The combined self-employment rate is 2.9% and does not have the same wage limit.
- Additional Medicare Tax: An additional 0.9% may apply when the applicable income threshold is exceeded.
Who Needs to Pay Self-Employment Tax?
Self-employment tax may apply to people who earn income from independent business activities rather than receiving all their income as traditional employees.
- Freelancers and independent contractors.
- Consultants and professional service providers.
- Sole proprietors and eligible small business owners.
- Individuals earning income through eligible side businesses.
- Some partners receiving income from partnerships.
The exact tax treatment depends on the type of business, income, and applicable IRS rules.
How to Use Our Self-Employment Tax Calculator
- Select the tax year you want to estimate.
- Enter your gross business income.
- Enter your deductible business expenses.
- Add any W-2 Social Security wages, if applicable.
- Select your federal income tax filing status.
- Enter other Medicare wages, if applicable.
- Click Calculate Tax to view your estimated results.
You can use the Reset button to restore the calculator's default values and enter a different set of business income details.
Frequently Asked Questions
1. What is a self-employment tax calculator?
A self-employment tax calculator is an online tool that estimates Social Security and Medicare taxes on eligible net earnings from self-employment.
2. What is the self-employment tax rate?
The combined standard self-employment tax rate is generally 15.3%, consisting of 12.4% Social Security tax and 2.9% Medicare tax. Additional Medicare Tax may also apply.
3. Is self-employment tax different from income tax?
Yes. Self-employment tax generally covers Social Security and Medicare contributions. Federal income tax is a separate tax calculated under different rules.
4. Can I deduct business expenses?
Eligible ordinary and necessary business expenses can generally reduce your net business profit. Enter qualifying expenses in the business expenses field.
5. What is the 92.35% calculation?
The calculator multiplies net business profit by 92.35% to estimate net earnings subject to self-employment tax.
6. Do W-2 wages affect self-employment tax?
Yes. Social Security wages from employment can reduce the remaining Social Security wage limit available for self-employment earnings. Other Medicare wages can also affect Additional Medicare Tax.
7. What is the deduction for half of self-employment tax?
Eligible self-employed individuals may generally deduct one-half of their self-employment tax when calculating adjusted gross income for federal income tax purposes.
8. Does this calculator estimate quarterly taxes?
No. This calculator estimates self-employment tax and a monthly reserve amount. It does not calculate your complete quarterly estimated federal tax payments.
9. Is the self-employment tax estimate exact?
No. The result is an estimate based on the information entered and the calculator's assumptions. Your final tax liability may differ depending on your complete tax situation.
Plan Your Self-Employment Taxes
Understanding your self-employment tax can help you prepare for tax payments and manage your business finances. Use the calculator above to estimate your Social Security and Medicare tax obligations based on your business income and expenses.