Self-Employment Tax Calculator

Self-employment tax covers Social Security (12.4%) and Medicare (2.9%) — totaling 15.3% of net earnings. Employees only pay half (7.65%) because their employer pays the other half, but self-employed individuals pay both halves.

You can deduct half of your SE tax from your gross income. Business expenses also reduce your net self-employment income. Forming an S-corp can further reduce SE tax on income above a reasonable salary.

SE tax applies to net self-employment income above $400. Only the Social Security portion has a cap ($168,600 in 2024). Medicare tax applies to all net earnings with no cap, plus a 0.9% additional Medicare tax on income over $200,000.