Uses 2024 Social Security Wage Base ($168,600)

Self-Employment Tax
Calculator 2024

See exactly how much SE tax you owe — Social Security, Medicare, and Additional Medicare Tax. Includes the deductible half of SE tax. Free. No signup.

Self-Employment Tax Estimator

Enter your net self-employment income and filing details to see your SE tax breakdown.

How Self-Employment Tax Is Calculated

1

Enter Your Net SE Income

Net self-employment income is your gross self-employment earnings minus allowable business deductions. This is the starting point for all SE tax calculations.

2

SE Tax Applies to 92.35% of Net Income

The IRS applies SE tax to 92.35% of net self-employment income (not 100%). This multiplier accounts for the employer-equivalent deduction built into the SE tax formula.

3

Social Security Wage Base Cap

The 12.4% Social Security portion only applies up to the wage base ($168,600 for 2024). W-2 wages count toward this limit first, so entering other W-2 income gives a more accurate result.

4

Medicare and Additional Medicare Tax

The 2.9% Medicare tax applies to all net SE earnings with no cap. An additional 0.9% applies to combined SE and W-2 income above $200,000 (single) or $250,000 (married filing jointly).

5

SE Tax Deduction Reduces Your Income Tax

You can deduct half of your SE tax (the employer-equivalent portion) from gross income when calculating your adjusted gross income. This deduction applies to the Social Security and Medicare portions, not the Additional Medicare Tax.

Important Disclaimer

This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Self-employment tax calculations involve many variables including deductions, credits, and filing status nuances that this simplified tool cannot fully account for. Results are estimates only. This tool does not create a professional-client relationship. Please consult a licensed CPA or tax professional before making any tax decisions based on these results.

Self-Employment Tax FAQ

What is self-employment tax?
Self-employment (SE) tax covers your Social Security and Medicare contributions. Employees split these taxes with their employer — each paying 7.65%. As a self-employed person, you pay both sides: 15.3% total (12.4% Social Security + 2.9% Medicare) on 92.35% of your net SE income.
Why is SE tax calculated on 92.35% of net income, not 100%?
The 92.35% factor (= 1 minus 7.65%) reflects the employer half of FICA taxes. Employers deduct their share of payroll taxes as a business expense before paying employees. The IRS gives self-employed individuals an equivalent adjustment so they are taxed on net earnings comparable to what an employee would receive.
What is the Social Security wage base?
For 2024, the Social Security wage base is $168,600. The 12.4% Social Security tax only applies to SE earnings (and W-2 wages) up to this limit. There is no wage base cap for the 2.9% Medicare tax.
What is the Additional Medicare Tax?
The Additional Medicare Tax is 0.9% on net SE income (plus W-2 wages) that exceeds $200,000 for single filers or $250,000 for married filing jointly. It was introduced by the Affordable Care Act and is not split with an employer — self-employed individuals pay the full 0.9% themselves.
Can I deduct half of my SE tax?
Yes. You can deduct 50% of your SE tax (the Social Security + Medicare portions) as an above-the-line deduction on your income tax return. This deduction reduces your adjusted gross income and therefore your income tax, but it does not reduce your SE tax itself. The Additional Medicare Tax is not eligible for this deduction.
How do I reduce my self-employment tax?
Common strategies include: (1) Deduct all legitimate business expenses to lower net SE income, (2) Contribute to a SEP-IRA or Solo 401(k), which reduces taxable income but not SE tax directly, (3) Elect S-Corp status for your LLC once profit exceeds ~$40,000 — S-Corp owners pay SE tax only on their salary, not on distributions.

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