US Self-Employment Tax Calculator

Self-employment (SE) tax is the Social Security and Medicare tax paid by people who work for themselves. Employees split these taxes with their employer; the self-employed pay both halves, which is why the combined rate is 15.3%. It is separate from federal income tax.

The SE tax rate is 15.3% — 12.4% for Social Security plus 2.9% for Medicare. The Social Security portion applies only up to the 2025 wage base of $176,100; the Medicare portion has no upper limit. A further 0.9% Additional Medicare Tax applies to higher earners.

You first multiply your net self-employment earnings by 92.35% to get the SE tax base. Then you apply 12.4% Social Security (up to $176,100) and 2.9% Medicare to that base. This calculator does both steps for you and shows the breakdown.

Self-employment tax is charged on 92.35% of your net earnings, not 100%. The 7.65% reduction roughly mirrors the employer-side payroll tax that an employee would not pay tax on, keeping the self-employed broadly in line with employees.

Net earnings are your business income minus your deductible business expenses — essentially your profit. For most freelancers and sole proprietors this is the net profit from Schedule C. Enter that profit figure, not your gross revenue.

$176,100 for 2025. The 12.4% Social Security portion of SE tax only applies to your SE tax base up to this amount. Earnings above it are not subject to the Social Security portion, though the 2.9% Medicare portion continues with no cap.

It is an extra 0.9% Medicare tax on earnings above $200,000 (single) or $250,000 (married filing jointly). It is reported on Form 8959, separately from the standard 15.3% SE tax, and this calculator shows it as a separate line.

Yes. You can deduct half of your Schedule SE self-employment tax as an adjustment to income on your federal return. It does not reduce the SE tax itself, but it lowers your income tax. The calculator shows this deductible half for reference.

Yes — they are two separate taxes. Self-employment tax funds Social Security and Medicare; income tax is calculated separately on your taxable income. A freelancer typically owes both, which is why estimated quarterly payments matter.

No. If your business runs at a loss (negative net earnings), there is no self-employment tax, because there are no net earnings to tax. Losses can also affect your income tax position separately.

You generally must pay SE tax once your net self-employment earnings reach $400 in a year. Below $400 there is normally no SE tax, although you may still have income-tax filing obligations.

No — it shows self-employment tax only (Social Security and Medicare). Your federal income tax is calculated separately on your taxable income; see our US Federal Income Tax Calculator for that part of the picture.

Often not — but only if you claim the exemption. Under the US/UK Totalization Agreement, a self-employed American resident in the UK generally pays UK National Insurance instead and is exempt from US SE tax, provided you obtain a UK certificate of coverage. Without it, the IRS can charge the full 15.3%. This is a key cross-border point worth getting advice on.

No. The Foreign Earned Income Exclusion removes foreign earned income from US income tax, but it does not reduce self-employment tax. A self-employed American abroad can exclude all their income from income tax and still owe 15.3% SE tax unless the Totalization Agreement exemption applies.

Through quarterly estimated tax payments if you expect to owe $1,000 or more for the year. The 2025/2026 estimated dates fall in April, June, September and January. Paying quarterly avoids underpayment penalties at year end.

They fund the same programmes (Social Security and Medicare), but payroll tax is split between an employer and employee, while self-employment tax is the self-employed person paying both halves themselves — hence the 15.3% combined rate.

It can, because an S-corp owner pays SE-equivalent tax only on a reasonable salary, not on all profit. But it adds payroll, filing and compliance costs and is not right for everyone. It is a planning decision to weigh carefully, ideally with a specialist.

It uses the official 2025 rates and the $176,100 Social Security wage base and is accurate for a straightforward sole proprietor with no W-2 wages. If you also have employment wages, they use up part of the Social Security base, which can change the result.

The calculation runs entirely in your browser and nothing is stored unless you choose to download the branded PDF report, at which point you provide your name and email so we can send it. Phone and address are optional.

Yes. Enter your name and email (phone and address optional) and we generate a TaxStone-branded PDF of your self-employment tax breakdown to download instantly — handy for budgeting or sharing with your accountant.

If you are self-employed and especially if you have cross-border (US/UK) income, a quick check can save real money — on the Totalization exemption, S-corp planning, or estimated payments. Book a free 20-minute call with a TaxStone Enrolled Agent.