If you are self-employed, a sole proprietor, or an independent professional, no employer withholds Social Security or Medicare taxes from your earnings; you are personally responsible for paying the full amount of these taxes (covering both the employee and employer shares). This self-employment tax calculator determines the exact amount you owe, taking into account your net profit, any other income as an employee (W-2 income), and your tax filing status. Enter your details below to get a complete breakdown, including the income tax-deductible portion.
How this self-employment tax calculator works
The self-employment tax consists of three components, each calculated based on 92.35% of your net profit (rather than the total amount). This calculation method accounts for the fact that, for traditional employees, Social Security and Medicare taxes are calculated on gross wages, even before considering the employer’s share:
- Social Security (12.4%): applies up to the annual earnings limit subject to tax ($184,500 for 2026) and is aggregated with any income earned as an employee (W-2 income) during the same year.
- Medicare (2.9%): applies to all net earnings, with no maximum limit.
- Additional Medicare Tax (0.9%): applies only to income exceeding $200,000 (single filers) or $250,000 (married filing jointly), and only on the portion of income that exceeds that threshold.
In total, this results in a tax rate of 15.3%. However, since there is no cap on Medicare taxes—unlike Social Security taxes—your effective rate decreases once your income exceeds the Social Security earnings limit, as only the Medicare portion (2.9%) applies above that threshold.
Example of self-employment tax calculation: $100,000 in net profit
Below is a detailed calculation example from this self-employment tax calculator for a single person with $100,000 in net profit from self-employment and no other income as an employee (W-2 income):
- Net earnings subject to tax: $100,000 × 92.35% = $92,350
- Social Security: $92,350 × 12.4% = $11,451
- Medicare: $92,350 × 2.9% = $2,678
- Additional Medicare Tax: $0 (below the $200,000 threshold)
- Total self-employment taxes: $14,129
Half of this amount—approximately $7,065—is deductible from gross income (known as an “above-the-line” adjustment). This lowers your taxable income for federal income tax purposes, even if you do not claim itemized deductions.
What happens if you also have a job as an employee?
If, in addition to your self-employment income, you earn a salary (W-2 income)—a common scenario for those with a side business alongside a full-time job—that salary takes precedence when calculating the Social Security wage base limit. This means the 12.4% Social Security portion of your self-employment tax applies only to the remaining amount below the $184,500 cap; conversely, the 2.9% Medicare portion applies to your entire net self-employment income, regardless of the circumstances. This calculator automatically takes this into account as soon as you enter your W-2 salary amount.
Self-employment tax vs. FICA contributions for employees
A standard employee (who receives compensation via Form W-2) pays 7.65% in FICA contributions (6.2% for Social Security and 1.45% for Medicare), while the employer pays an equivalent 7.65%; the total thus amounts to 15.3%, split equally. Self-employed individuals must cover both portions; consequently, their tax rate is also 15.3%, as the entire amount is paid by a single person rather than being divided between employer and employee. You can find detailed official information regarding self-employment tax directly from the IRS.
It is important to note that self-employment tax is distinct from federal income tax; this self-employment tax calculator computes only the tax related to self-employment. If you wish to assess your overall tax situation, including income tax, our paycheck calculator can help you understand how tax brackets apply to your total income.
What is the self-employment tax rate for 2026?
A total of 15.3%: 12.4% for Social Security (up to the $184,500 contribution limit) and 2.9% for Medicare (with no limit), plus an additional 0.9% Medicare tax on income exceeding $200,000 (single filers) or $250,000 (married couples filing jointly).
Does self-employment tax apply to my entire business income?
No: this tax is calculated on 92.35% of net profit, not the total amount; this principle reflects the fact that, for the employee FICA tax, the employer’s share is not included in the taxable base.
Can I deduct self-employment tax from my taxes?
Yes: this self-employment tax calculator accounts for the fact that you can deduct half of this tax (the Social Security and Medicare portions, but not the additional Medicare tax) from your taxable income, even if you do not choose to itemize deductions.
Does self-employment tax apply if I also work as an employee?
Yes, but your employee income (income reported on Form W-2) takes priority regarding the Social Security contribution limit; this means that if your employee income already exceeds the $184,500 limit, only the Medicare portion (which has no limit) would apply to your self-employment income.
Who must pay self-employment tax?
Anyone who earns at least $400 in net self-employment income during the year. This includes independent professionals, independent entrepreneurs, sole proprietorships, and most owners of single-member limited liability companies (LLCs).