Self Employment Tax Calculator
Calculate your self-employment tax (Social Security and Medicare) with our free calculator. Self-employed individuals, freelancers, and independent contractors pay both the employer and employee portions of these taxes—totaling 15.3% on net earnings.
Self-Employment Tax Breakdown (2024)
| Tax Component | Rate | Wage Base Limit | Notes |
|---|---|---|---|
| Social Security (Employee) | 6.2% | $168,600 | Same as W-2 workers |
| Social Security (Employer) | 6.2% | $168,600 | Paid by self-employed |
| Medicare (Employee) | 1.45% | No limit | All earnings taxed |
| Medicare (Employer) | 1.45% | No limit | Paid by self-employed |
| Additional Medicare | 0.9% | Over $200,000 | High-income surcharge |
| Total SE Tax | 15.3% | Varies | On 92.35% of net earnings |
How Self-Employment Tax Works
You pay SE tax on 92.35% of net self-employment income (after business expenses). Half of the SE tax is deductible on your income tax return, reducing your adjusted gross income. This mirrors how employers deduct their portion of payroll taxes.
Self-Employment Tax Calculator
``javascript
function calculateSelfEmploymentTax(netEarnings) {
const seTaxableAmount = netEarnings * 0.9235; // Only 92.35% is taxable
const socialSecurityLimit = 168600; // 2024 limit
// Social Security: 12.4% up to wage base
const socialSecurityTax = Math.min(seTaxableAmount, socialSecurityLimit) * 0.124;
// Medicare: 2.9% on all earnings
let medicareTax = seTaxableAmount * 0.029;
// Additional Medicare tax: 0.9% over $200k
if (seTaxableAmount > 200000) {
medicareTax += (seTaxableAmount - 200000) * 0.009;
}
const totalSETax = socialSecurityTax + medicareTax;
const deductiblePortion = totalSETax / 2;
return {
totalSETax: totalSETax.toFixed(2),
socialSecurityTax: socialSecurityTax.toFixed(2),
medicareTax: medicareTax.toFixed(2),
deductiblePortion: deductiblePortion.toFixed(2),
effectiveRate: (totalSETax / netEarnings * 100).toFixed(2) + '%'
};
}
``
Reducing Self-Employment Tax
Consider an S-corp election if earnings exceed $50,000—paying yourself a reasonable salary and taking remaining profit as distributions can reduce SE tax. Maximize business expense deductions to lower net earnings. Contribute to SEP-IRA or Solo 401(k) to reduce both income tax and SE tax base.
Worked Through the Brackets
On $90,000 of gross income, filing single, taking the $14,600 standard deduction — so $75,400 of taxable income:
| Bracket | Range | Income taxed here | Tax |
|---|---|---|---|
| 10% | $0 – $11,600 | $11,600 | $1,160 |
| 12% | $11,600 – $47,150 | $35,550 | $4,266 |
| 22% | $47,150 – $100,525 | $28,250 | $6,215 |
| Total | $11,641 |
The Same Income, Different Sources
| Source | Federal tax on it |
|---|---|
| Wages (above) | $11,641 |
| Self-employment profit | $11,641 income tax plus $12,717 SE tax |
| Long-term capital gain of $10,000 | $1,500 at 15% |