TAXES

Self-Employment Tax Calculator

When you work for yourself, you pay both the employee and the employer share of Social Security and Medicare tax, because there is no employer to split the bill with you. This calculator works out your self-employment tax for 2025 from your net self-employment income, and shows the part of that tax you can deduct on your income tax return.

How to use this self-employment tax calculator

1. Enter your net self-employment income. This is your profit after business expenses, the figure that ends up on Schedule C of your tax return. Your bookkeeping software or last year’s return shows it.
2. If you also had a job as an employee this year, enter the W-2 wages that already had Social Security tax taken out of them. Your most recent payslip shows the year-to-date figure. Enter 0 if you had no employee wages.
3. Press Calculate. You will see your taxable self-employment income, your total self-employment tax, the Social Security part, the Medicare part, the amount you can deduct on your income tax return, and your effective rate on your net income.

A worked example

Say your net self-employment income is $80,000 for the year and you had no W-2 wages.

The calculator taxes only 92.35% of that income, giving taxable self-employment income of $73,880.00. Social Security tax at 12.4% comes to $9,161.12, and Medicare tax at 2.9% comes to $2,142.52.

Your total self-employment tax is $11,303.64, which works out at an effective rate of 14.13% on your net income. Half of that tax, $5,651.82, can be deducted on your income tax return, which takes some of the sting out of the bill. The Internal Revenue Service explains self-employment tax and how to pay it.

Related calculators

• Estimated Tax Calculator: estimate your federal income tax bill and the quarterly payments to set aside.
• Income Tax Calculator: estimate the federal income tax on wages and other income.
• Salary to Hourly Calculator: turn an annual salary into its hourly rate and pay per week, paycheck and month.
• Retirement Calculator: check whether your savings are on track for the retirement you want.

How this self-employment tax calculator works

Employees split Social Security and Medicare tax with their employer. Each side pays 7.65%, so the employee has 7.65% taken from their pay and the employer pays the same amount again on top.

If you are self-employed, you pay both halves yourself: 15.3% in total. That is why the IRS taxes only 92.35% of your net earnings. An employee never pays tax on the employer’s share, and the 92.35% adjustment gives you the same treatment by taking that employer share out of the amount taxed. This calculator applies the 92.35% adjustment first, then charges Social Security tax at 12.4% up to the 2025 wage base and Medicare tax at 2.9% with no cap.

Half of your self-employment tax is deductible against your income tax. That deduction does not reduce the self-employment tax itself, but it lowers the income on which your income tax is worked out, which softens the bill.

Practical tips

• Set aside 25% to 30% of every payment you receive, so the money for self-employment tax and income tax is there when you need it.
• Pay quarterly estimated taxes during the year, so you do not face a large bill and an underpayment penalty at filing time.
• Track your deductible business expenses carefully. Every deductible expense lowers your net income, and therefore lowers this tax too.
• Once your profits grow, ask a tax professional whether running your business as an S corporation could reduce your bill.

Frequently asked questions

What is self-employment tax?

Self-employment tax is the Social Security and Medicare tax charged on self-employed earnings. For 2025 it totals 15.3%, made up of 12.4% for Social Security and 2.9% for Medicare.

Why is only 92.35% of my income taxed?

Employees never pay tax on their employer’s share of Social Security and Medicare tax. The 92.35% adjustment gives self-employed people the same treatment, by taking the employer share out of the amount taxed.

What is the Social Security wage cap for 2025?

For 2025, Social Security tax applies only up to $176,100 of combined wages and self-employment income. Medicare tax has no cap, so it applies to all of your taxable self-employment income.

Can I deduct part of my self-employment tax?

Yes. You can deduct half of your self-employment tax against your income tax. The deduction does not reduce the self-employment tax itself, only the income tax you pay on top of it.