Self-Employment Tax Estimator
Estimate your 15.3% self-employment tax on net earnings — the Social Security and Medicare share, plus the deductible half.
How it works
Taxable base = net earnings × 92.35% · SE tax = 12.4% (to wage base) + 2.9% Medicare = 15.3% · Deductible half = SE tax ÷ 2
Self-employed people pay both the employee and employer share of Social Security and Medicare, which is why the combined rate is 15.3% rather than the 7.65% withheld from a W-2 paycheck. The tax applies to 92.35% of net earnings (net profit minus the employer-equivalent deduction), not the full amount. The 12.4% Social Security portion stops at the annual wage base ($176,100 in 2025), while the 2.9% Medicare portion has no cap. You can deduct half of the SE tax when computing your federal income tax.
Worked example
A freelancer with $60,000 in net earnings is taxed on 60,000 × 0.9235 = $55,410. Since that is below the Social Security wage base, SE tax is 55,410 × 15.3% ≈ $8,478 — split into about $6,871 Social Security and $1,607 Medicare. Half, roughly $4,239, is deductible against income tax.
Frequently asked questions
Why is self-employment tax 15.3% and not 7.65%?
W-2 employees pay 7.65% and their employer pays a matching 7.65%. As your own employer you pay both halves, so the combined rate is 15.3% — 12.4% Social Security plus 2.9% Medicare.
What is the 92.35% factor?
You only pay SE tax on 92.35% of net earnings. The 7.65% reduction mirrors the employer-share deduction a business would take, so the self-employed are not taxed on money that would otherwise be a deductible employer expense.
Is any of the SE tax deductible?
Yes. You can deduct one-half of your self-employment tax as an above-the-line deduction when figuring your adjusted gross income, which lowers your federal income tax (though not the SE tax itself).
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Educational estimate using approximate 2025 US federal figures — not tax advice. Brackets, deductions and thresholds are simplified and ignore credits, state rules and W-4 details; consult a tax professional or the IRS for your actual liability.