After deducting business expenses
Estimated SE Tax (2025)
$0
Includes employer & employee portion
Net Self-Employment Income$—
92.35% of net income (SE tax base)$—
Social Security portion (12.4% up to cap)$—
Medicare portion (2.9% on all earnings)$—
Additional Medicare (0.9% over $200k/$250k)$0
Total Self-Employment Tax$—
💡 Tax deduction reminder: You can deduct 50% of your SE tax on Form 1040 (adjustment to income). This calculator shows your SE tax liability before that deduction. The deduction reduces AGI but not the SE tax itself.

📘 Understanding Self-Employment Tax (US)

If you are a sole proprietor, independent contractor, freelancer, or gig worker, you pay Self-Employment (SE) tax instead of Social Security and Medicare withholding. The SE tax rate is 15.3% — which covers both the "employer" (12.4% Social Security) and "employee" portion (2.9% Medicare). However, you are allowed to deduct the employer-equivalent portion (50% of SE tax) when calculating your adjusted gross income.

📌 How the 2025 SE Tax Works

  • Social Security portion: 12.4% of your net earnings up to the wage base limit ($176,100 for 2025). If you also have W-2 wages, the cap applies across combined earnings.
  • Medicare portion: 2.9% on all net earnings (no cap).
  • Additional Medicare tax: 0.9% on combined self-employment + W-2 income above $200,000 (single) / $250,000 (married joint).
  • Your SE tax is calculated on 92.35% of your net business income (to account for the deductible portion of the employer-equivalent tax).

🧮 How to Use This Calculator

Step 1: Enter your Net Business Income from Schedule C — total revenue minus ordinary business expenses (supplies, software, home office, etc.).
Step 2: If you have a W-2 job that already pays Social Security taxes near the annual limit, select "Yes" and input your W-2 wages. This ensures you don't overpay Social Security (excess will be credited on your tax return).
Step 3: Click "Update Self-Employment Tax" to see the breakdown: Social Security, Medicare, and any Additional Medicare tax.
Important: The result is your total SE tax (Schedule SE, line 13). You'll report it on Form 1040 Schedule 2 and you can claim a deduction for half of it on Schedule 1.

✅ Example

A freelance designer earns $80,000 net profit in 2025, no other W-2 wages. SE tax base = $80,000 × 92.35% = $73,880. Social Security (12.4% on first $176,100) = $9,161. Medicare (2.9%) = $2,142. Total SE tax ≈ $11,303. The designer can deduct $5,651 on Form 1040.

⚠️ Important Notes

This calculator provides an estimate for federal self-employment tax only. State taxes, estimated quarterly payments, and the Qualified Business Income (Section 199A) deduction are not included. Always consult a CPA or tax professional for personalized advice. Tax limits are based on 2025 IRS parameters (Revenue Procedure 2024-40).

Disclaimer: This tool is for educational and estimation purposes. Actual tax liability may vary based on additional income, filing status, deductions, and IRS regulations. Always file accurate returns and consult a qualified tax advisor.