Self-employment tax calculator

If you freelance, drive for an app or run a sole proprietorship, you pay both halves of Social Security and Medicare yourself. That is the self-employment tax.

Enter your net profit to see the tax, the deduction you get for half of it and a quarterly amount to set aside.

How it's calculated

Only 92.35% of your net profit is taxed. If that amount is under $400, you owe nothing.
Social Security takes twice 6.2% on net earnings up to $184,500, minus any W-2 wages you already earned this year.
Medicare takes twice 1.45% on all net earnings. Above $200,000 ($250,000 on a joint return), the Additional Medicare Tax of 0.9% applies too.
Half of the self-employment tax is a deduction from your income for income tax purposes.

An example

With $50,000 of profit, $46,175 is taxed. Self-employment tax is $7,064.78 and you deduct $3,532.39 when you figure your income tax.

Frequently asked questions

What is the self-employment tax rate?

15.3% on net earnings: 12.4% for Social Security up to the wage base and 2.9% for Medicare with no limit.

Why is only part of my profit taxed?

An employee's FICA isn't charged on the employer's half. The 92.35% factor gives you the same break.

Do I have to pay it every quarter?

Usually yes. When you have no paycheck withholding to cover it, the IRS expects estimated payments in April, June, September and January. Our quarterly estimated tax calculator shows the safe amount.

Key terms

Net earnings from self-employment: Your net profit multiplied by 92.35%.
Schedule SE: The IRS form where you figure this tax. It goes with your Form 1040.