Self-Employment Tax Calculator
Estimate the 15.3% self-employment tax you owe on your net business profit. This calculator breaks out the Social Security and Medicare portions, applies the 2025 $176,100 Social Security cap and the 0.9% Additional Medicare Tax, and shows the half you can deduct. Figures are for US tax year 2025.
How self-employment tax works in 2025
When you work for yourself, you pay both the employee and employer halves of payroll tax - together called self-employment (SE) tax. The combined rate is 15.3%, made up of two parts:
- 12.4% Social Security, on net earnings up to the 2025 wage base of $176,100. Earnings above that cap are not subject to the Social Security portion.
- 2.9% Medicare, with no income cap, on all of your net earnings.
Crucially, SE tax applies to only 92.35% of your net profit. Schedule SE multiplies your net profit by 0.9235 to get your "net earnings from self-employment," and the 15.3% rate is applied to that figure.
The Additional Medicare Tax and the deductible half
- +0.9% Additional Medicare Tax applies to net earnings above $200,000 (single) or $250,000 (married filing jointly).
- Half is deductible. You can deduct one-half of your SE tax as an above-the-line deduction, which lowers the income tax you owe (though not the SE tax itself).
Self-employment tax is separate from - and on top of - your federal and state income tax. To see your full bill, use the 1099 tax calculator.
Frequently asked questions
How much is self-employment tax in 2025? +
Self-employment tax is 15.3% - 12.4% for Social Security plus 2.9% for Medicare - but it applies to only 92.35% of your net profit, not the full amount. So while the headline rate is 15.3%, the effective rate against your net profit is closer to 14.1%. This calculator shows your exact figure for tax year 2025.
Why is only 92.35% of my profit taxed? +
Schedule SE multiplies your net profit by 0.9235 before applying the 15.3% rate. This adjustment exists because a W-2 employee's share of payroll tax isn't counted as taxable wages, so the self-employed get an equivalent reduction. The result is your 'net earnings from self-employment.'
Is there a cap on self-employment tax? +
Yes, on the Social Security portion. For 2025 the 12.4% Social Security tax applies only to the first $176,100 of combined wages and net earnings. The 2.9% Medicare portion has no cap and applies to all of your net earnings.
What is the Additional Medicare Tax? +
An extra 0.9% Medicare tax applies to net earnings above $200,000 (single or head of household), $250,000 (married filing jointly), or $125,000 (married filing separately). The calculator adds it automatically once your earnings exceed the threshold for your filing status.
Can I deduct self-employment tax? +
You can deduct half of your self-employment tax as an above-the-line deduction against your income tax. It does not reduce the SE tax itself, but it lowers your adjusted gross income and therefore your federal (and usually state) income tax. The calculator shows this deductible half.
Estimate your full 1099 tax bill
Self-employment tax is just one piece. See your total federal, state, and SE tax - and how much to set aside.
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