Self-Employment Tax Calculator
Calculate your self-employment tax (SE tax) on freelance or business income. Enter your net self-employment earnings to see the Social Security and Medicare portions, taxable earnings, and the deductible half you can claim.
Self-Employment Tax Calculator
FAQ
What is self-employment tax?
Self-employment tax covers Social Security and Medicare taxes for people who work for themselves. The combined rate is 15.3% (12.4% for Social Security and 2.9% for Medicare), which is applied to 92.35% of your net self-employment earnings.
Why is the rate applied to 92.35% of earnings?
The 92.35% factor (100% minus half of the 15.3% SE tax rate) mirrors the fact that employers pay half of FICA for employees. This adjustment ensures self-employed individuals are treated similarly to employees for tax purposes.
Can I deduct self-employment tax?
Yes, you can deduct the employer-equivalent portion (half) of your self-employment tax when calculating your adjusted gross income. This is an above-the-line deduction, meaning you do not need to itemize to claim it.