Self-Employment Tax Calculator
SE tax, deductible half, and effective rate from net self-employment earnings.
What it does
Self-employment tax replaces the payroll taxes a paycheck would carry: 12.4% Social Security plus 2.9% Medicare, applied to 92.35% of net profit. The 7.65% haircut first mirrors the employer half wage earners never see taxed.
The tool above takes yearly net earnings from self-employment. It returns the SE tax with the deductible half and the effective rate on earnings beside them.
The default of $60,000 owes $8,477.73 with $4,238.87 deductible, an effective 14.13%. At $100,000 the same rate gives $14,129.55 with $7,064.78 deductible.
The math follows IRS Schedule SE instructions with the self-employment tax guide matching each line. Both tax 92.35% of earnings at 15.3% and let half deduct against income tax.
How to use
- Enter net profit after business expenses.
- Read SE tax first for the amount owed.
- Read the deductible half for the income tax break.
- Read the effective rate to compare with wage work.
- Pay quarterly estimates so April holds no surprise.
Formula
- 92.35%
- Schedule SE haircut mirroring the employer half.
- 15.3%
- 12.4% Social Security plus 2.9% Medicare.
- 1/2
- Employer equivalent half deductible from income.
Below the Social Security wage base throughout; past it the 12.4% part stops while Medicare continues. Income tax itself sits outside: this page prices payroll tax only.
Worked example
Example: $60,000 net earnings
Default: earnings 60000.
- Taxable: 60,000 x 92.35% = $55,410.00.
- Tax: 55,410 x 15.3% = $8,477.73.
- Deductible: 8,477.73 / 2 = $4,238.87.
- Effective: 8,477.73 / 60,000 = 14.13% of earnings.
- Tool shows $8,477.73, $4,238.87, 14.13 % of earnings.
Reference table
| Net earnings | SE tax | Deductible half |
|---|---|---|
| $60,000 | $8,477.73 | $4,238.87 |
| $100,000 | $14,129.55 | $7,064.78 |
| $300 | $0.00 | $0.00 |
Limits
- Payroll tax only; income tax needs its own math.
- Wage base cap ignored: high earners overpay the 12.4% part here.
- Losses and multi business netting need Schedule SE proper.
- State and local self-employment rules excluded.
Common mistakes
- Taxing gross receipts instead of net profit.
- Skipping the 92.35% haircut and overpaying.
- Forgetting quarterly estimates until April.
- Missing the half deduction on the income return.
- Ignoring the $400 filing threshold both ways.
Try it yourself
Quick checks. Answers sit tucked under each question.
$100,000 net earnings?
$92,350 taxable: $14,129.55 tax, $7,064.78 deductible.
$300 of net earnings?
$0.00: under $400 owes no SE tax.
Why 92.35%?
It mirrors the employer half wage earners never pay tax on.
Questions
What is the self-employment tax rate?
15.3% on 92.35% of net earnings: 12.4% Social Security plus 2.9% Medicare.
Who must pay it?
Net earnings of $400 or more from self-employment, filed on Schedule SE.
Is half really deductible?
Yes. Half of SE tax deducts from income (not from SE tax itself).
Does W-2 work count?
Separately. Wages face FICA; only self-employment profit faces SE tax.
What about the wage base?
Past the Social Security cap the 12.4% part stops; this page assumes earnings below it.
Quarterly payments?
Usually yes. Payers rarely withhold from contractors, so estimates cover it.