Self-Employment Tax Calculator
TaxCalculate Social Security and Medicare self-employment tax for freelancers, 1099 contractors, and sole proprietors, for tax year 2024 instantly.
Reviewed by the thecalcu.com team · Last updated June 22, 2026
Total SE Tax
What is a SE Tax?
A self-employment tax calculator computes the Social Security and Medicare tax owed by freelancers, independent contractors, sole proprietors, and single-member LLC owners on their net self-employment income. It applies the 2024 IRS Schedule SE formula, multiplying net income by 92.35% and then by the combined 15.3% FICA rate, and also calculates the deductible half of SE tax that reduces your federal income tax liability.
Self-employment tax exists because the Social Security and Medicare system requires everyone who earns income from work to contribute, regardless of employment structure. W-2 employees have the burden split with their employer: each pays 7.65% (the combined 6.2% Social Security + 1.45% Medicare rate). Self-employed individuals have no employer to share the cost, so they pay the full 15.3%, but they are allowed to deduct the equivalent of the employer's share (50% of SE tax) from their gross income when calculating federal income tax.
The 92.35% factor in the formula accounts for this structure. Since a hypothetical employer would pay 7.65% on top of the employee's wages, the self-employed person's net income is treated as if 7.65% was already the "employer's share", so SE tax is applied to 92.35% (100% − 7.65%) of net income rather than the full 100%.
For 2024, the Social Security component (12.4%) applies only up to $168,600 of combined wages and self-employment income. Income above this threshold is not subject to Social Security tax. The Medicare component (2.9%) has no cap. For high earners, single filers with total income above $200,000 or married joint filers above $250,000, the Additional Medicare Tax of 0.9% applies to the excess.
After estimating your SE tax here, use the Federal Income Tax Calculator with the deductible SE tax amount (shown in the "Deductible SE Tax" output) entered as a pre-tax deduction to estimate your combined federal tax burden.
Why Use a Self-Employment Tax Calculator?
Plan quarterly estimated tax payments. Unlike W-2 employees who have tax withheld automatically from every paycheck, self-employed individuals must proactively pay estimated taxes four times per year. The IRS charges an underpayment penalty if you owe more than $1,000 at tax time without having made adequate quarterly payments. The calculator's Total SE Tax output, combined with your estimated federal income tax from the Federal Income Tax Calculator, gives you the annual tax burden to divide across four quarters.
Budget correctly for project pricing. Freelancers and contractors often underprice their services by forgetting that 15.3% of net income goes to SE tax before federal and state income taxes. If a W-2 employee earns $80,000, their effective FICA burden is 7.65%. A freelancer earning the same $80,000 net pays 12.82% ($9,887 on the 92.35% factor) in SE tax alone. Knowing the actual SE tax helps set a billing rate that genuinely reflects the full tax cost of self-employment.
Understand the deduction benefit. The half-of-SE-tax deduction is one of the most misunderstood tax provisions for freelancers. The calculator shows the exact deductible amount, helping you quantify the federal income tax saving it generates, useful when comparing the true net cost of W-2 employment versus self-employment.
Model the W-2 wage interaction. If you have a day job and freelance on the side, your W-2 wages count toward the Social Security wage base. Entering your W-2 wages in the "Other Wages" field shows how much of the SE income's Social Security tax is already offset, preventing double-calculation.
Who Should Use This Calculator?
Freelancers and independent contractors receiving 1099-NEC income who need to estimate their SE tax before filing or making quarterly payments. Even those who have filed taxes multiple times often underestimate SE tax because it is calculated on a separate form (Schedule SE) rather than appearing directly on the 1040.
Gig economy workers on platforms like Uber, Lyft, Instacart, DoorDash, and Upwork are self-employed for tax purposes. Their 1099-K income is subject to SE tax, a common shock at first tax season. The calculator removes that surprise.
Sole proprietors and single-member LLC owners managing cash flow who need to set aside the right percentage of business revenue for taxes. A common rule of thumb is setting aside 25–30% of net income for combined SE and federal income taxes, but the exact amount varies by income level and filing status.
Side hustlers with W-2 day jobs who want to understand how their freelance income interacts with their existing Social Security wage base, particularly those earning over $100,000 from their employer.
New small business owners transitioning from employment to self-employment who need to understand the full tax cost of their new income structure before setting prices or projecting take-home pay.
What Insights Does the SE Tax Calculator Give You?
Total SE Tax is the headline figure, the combined Social Security tax, Medicare tax, and Additional Medicare Tax (if applicable) owed for the year. This is the amount from Schedule SE that flows to Line 15 of Schedule 2, which in turn adds to your total tax on Form 1040. Budget for this amount quarterly.
Social Security Tax shows the 12.4% component, capped by the wage base. If your total income (W-2 wages plus SE income) approaches or exceeds $168,600, this output correctly reduces the SE portion of Social Security tax, preventing overpayment.
Medicare Tax shows the base 2.9% component on all net SE income with no cap. For high earners, the Additional Medicare Tax (0.9%) is included in the Total SE Tax figure.
Deductible SE Tax is exactly half of your Schedule SE tax (Social Security + Medicare base). This amount is entered on Schedule 1, Part II as an adjustment to income. Knowing this figure lets you correctly enter it when estimating your federal income tax, reducing your AGI and your federal income tax bill.
Net SE Income After Deduction is your self-employment income minus the deductible SE tax amount. This is the net figure that flows into your AGI calculation, representing your self-employment income's contribution to federal income tax.
How to use this SE Tax calculator
Enter your Net Self-Employment Income, this is your Schedule C net profit (gross revenue minus business expenses), not your gross billings. If you have multiple Schedule C activities, enter the combined net. If you have a partnership, enter your distributive share of self-employment income.
Select your Filing Status, this determines the Additional Medicare Tax threshold ($200,000 for single/MFS, $250,000 for MFJ). If you have no other income and your SE net income is below $200,000, this input does not affect the calculation.
Enter Other W-2 Wages, if you have a W-2 job alongside your self-employment, enter your annual W-2 wages here. This correctly reduces the Social Security component of your SE tax by the amount of the wage base already used by your employer wages. Leave at $0 if you have no W-2 income.
Read Deductible SE Tax, take this figure to the Federal Income Tax Calculator and enter it as a "Pre-tax Deduction" to compute your combined federal tax picture.
Show formula & methodology ↓Show less ↑
Formula & Methodology
Schedule SE formula (2024): Net Earnings Subject to SE Tax = Net SE Income × 92.35% Social Security Tax = min(Net Earnings, max(0, $168,600 − W-2 Wages)) × 12.4% Medicare Tax = Net Earnings × 2.9% Additional Medicare Tax = max(0, (Net SE Income + W-2 Wages − Threshold)) × 0.9% Thresholds: $200,000 (Single/MFS) | $250,000 (MFJ) Deductible SE Tax = (Social Security Tax + Medicare Tax) ÷ 2 Net SE Income After Deduction = Net SE Income − Deductible SE Tax Worked example: - Net SE income: $80,000 | No W-2 wages | Single filer Net earnings subject to SE tax: $80,000 × 92.35% = $73,880 Social Security tax: $73,880 × 12.4% = $9,161 Medicare tax: $73,880 × 2.9% = $2,143 Total SE tax: $9,161 + $2,143 = $11,304 Deductible SE tax: $11,304 ÷ 2 = $5,652 (reduces AGI by $5,652) Net SE income after deduction: $80,000 − $5,652 = $74,348 At a 22% federal marginal rate, the deduction saves $5,652 × 22% = $1,243 in federal income tax, partially offsetting the SE tax burden. Assumptions: Net self-employment income is assumed to be the net Schedule C profit. Partnership distributive shares of SE income follow the same formula. S-corporation wages are not SE income (they are W-2 wages subject to regular FICA withholding by the corporation). The Additional Medicare Tax is included in Total SE Tax but is not deductible as part of the half-of-SE-tax deduction. State-level self-employment or business taxes are not modelled.
Frequently Asked Questions
What is self-employment tax?
Who has to pay self-employment tax?
How is self-employment tax calculated?
What is the Social Security wage base for 2024?
What is the deductible portion of self-employment tax?
What is the Additional Medicare Tax and when does it apply?
How does having W-2 wages affect self-employment tax?
How do I pay self-employment tax during the year?
Can I reduce self-employment tax with business deductions?
How does self-employment tax compare to being a W-2 employee?
Is self-employment tax deductible?
How does a Solo 401(k) or SEP-IRA affect self-employment tax?
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