Self-Employment Tax Calculator

How Schedule SE self-employment tax works

In a W-2 job, you and your employer each pay 6.2% for Social Security and 1.45% for Medicare (7.65% each), the rates in Publication 15. When you work for yourself, you pay both halves under 26 U.S.C. § 1401. As IRS Topic No. 554 states, "The law sets the self-employment tax rate as a percentage of your net earnings from self-employment. This rate consists of 12.4% for Social Security and 2.9% for Medicare taxes." Compare W-2 pay in the take-home pay calculator or bonus pay in the bonus tax calculator.

Because an employer can deduct its FICA half as a business cost, the law gives you two matching breaks. First, under 26 U.S.C. § 1402(a)(12) and Schedule SE line 4a, you multiply net profit by 92.35% (0.9235) before you figure the tax. Below the wage cap, 15.3% of 92.35% is 14.12955% of profit. Second, under 26 U.S.C. § 164(f) and line 13, you deduct 50% of your SE tax on Schedule 1 line 15. As IRS Topic No. 554 notes, "When figuring your adjusted gross income on Form 1040, Form 1040-SR, or Form 1040-NR, you can deduct one-half of the self-employment tax." Model how that Schedule 1 line 15 write-off lowers your bracket tax in the federal income tax calculator.

Under 26 U.S.C. § 1402(b)(2), you owe this tax only when net earnings reach $400.00 or more. That takes $433.13 of profit ($434.00 in whole dollars). As Schedule SE line 4c states, "Combine lines 4a and 4b. If less than $400, stop; you don’t owe self-employment tax." (Church worker pay uses a $108.28 floor.) At $433.00 of profit, net earnings are $399.88 and your tax is $0.00. At $434.00 of profit, net earnings are $400.80 and SE tax is $61.32 ($49.70 Social Security plus $11.62 Medicare).

Schedule SE and Form 8959 formulas

Net earnings (Schedule SE Line 4a) = Net profit × 92.35% (26 U.S.C. § 1402(a)(12); $0.00 tax if Net earnings < $400.00)
Social Security tax (Line 10) = min(Net earnings, max($0.00, Wage base − W-2 Social Security wages)) × 12.4% (26 U.S.C. § 1401(a))
Medicare tax (Line 11) = Net earnings × 2.9%; SE tax (Line 12) = Social Security tax + Medicare tax
Deductible half (Line 13) = 50% × SE tax (26 U.S.C. § 164(f); Schedule 1 line 15)
Additional Medicare Tax (Form 8959 Line 13) = max($0.00, Net earnings − max($0.00, Threshold − Medicare wages)) × 0.9%, where Medicare wages are the larger of your box 3 plus box 7 and box 5 wages, plus your spouse's box 5 wages on a joint return

Worked self-employment tax examples

Default 2026 Single freelancer ($60,000.00 profit, $0.00 W-2 wages). Under [How It Works](#how-it-works), Schedule SE line 4a gives $55,410.00 of net earnings. With $0.00 of W-2 wages, the full 2026 [Social Security wage base](#wage-base) is open on line 9. Line 10 gives $6,870.84 of Social Security tax and line 11 gives $1,606.89 of Medicare tax. Line 12 adds them for $8,477.73 of SE tax (14.13% of profit). Line 13 gives a $4,238.87 write-off, which leaves $55,761.13 of profit after that deduction. That is your adjusted gross income only if you have no other income or adjustments. Since net earnings are below the Single [Additional Medicare floor](#additional-medicare), the surtax is $0.00.

Side business with $150,000.00 of 2026 W-2 wages ($60,000.00 profit, Single, box 3 and box 5 both $150,000.00). Net earnings on line 6 are $55,410.00. Subtracting $150,000.00 of W-2 pay from the 2026 [Social Security wage base](#wage-base) leaves $34,500.00 on line 9. That exempts the other $20,910.00 of net earnings from Social Security tax. Line 10 is $4,278.00 and line 11 is $1,606.89, for $5,884.89 of SE tax and a $2,942.45 write-off. Under [Additional Medicare Tax](#additional-medicare), your $150,000.00 of W-2 pay cuts the Single floor to $50,000.00 on line 11. The remaining $5,410.00 owes $48.69 of surtax and $5,933.58 in total (9.89% of profit).

Medicare wages above the wage base ($60,000.00 profit, Single, 2026). A W-2 shows $184,500.00 in box 3 and $250,000.00 in box 5. Box 3 fills the whole wage base, so Social Security tax is $0.00 and Medicare tax is $1,606.89. The $250,000.00 of Medicare wages cuts the Single floor to $0.00, so all $55,410.00 of net earnings owes surtax: $498.69, for $2,105.58 in total. Entering $184,500.00 in both boxes would leave $15,500.00 of the floor and show only $359.19 of surtax.

Two single filers from the Form 8959 instructions. In Example 3, Carl has $145,000.00 of net earnings ($157,011.37 of profit) and $130,000.00 of wages. His wages cut the Single [Additional Medicare floor](#additional-medicare) to $70,000.00, so $75,000.00 owes surtax of $675.00. The instructions stop there. Using this page's 2026 wage base, Carl also owes $6,758.00 of Social Security tax on the $54,500.00 left and $4,205.00 of Medicare tax, which makes $11,638.00 in total. In Example 2, Bob has $220,000.00 of net earnings ($238,224.15 of profit) and $0.00 wages. Social Security tax stops at $22,878.00 and Medicare tax is $6,380.00 ($29,258.00 SE tax; $14,629.00 write-off). The $20,000.00 above the Single floor owes $180.00 of surtax, for $29,438.00 in total.

Joint return with spouse's W-2 wages ($100,000.00 profit, $0.00 own wages, $200,000.00 spouse wages, 2026 Joint). Net earnings are $92,350.00. Because the [Social Security wage base](#wage-base) is per person, your spouse's $200,000.00 of pay leaves your own cap open. Social Security tax is $11,451.40 and Medicare is $2,678.15 ($14,129.55 SE tax; $7,064.78 write-off). Under [Additional Medicare Tax](#additional-medicare), your spouse's $200,000.00 of pay cuts the joint floor to $50,000.00. That leaves $42,350.00 subject to the surtax for $381.15 ($14,510.70 total).

A joint return where both spouses are self-employed (2026 Joint, $150,000.00 profit each, no wages). Each spouse has $138,525.00 of net earnings, so $277,050.00 together against the one $250,000.00 threshold. The surtax is 0.9% of $27,050.00, which is $243.45. This page, given one profit of $150,000.00, shows a surtax of $0.00, so use the additional Medicare tax calculator for a case like this.

Assumptions, boundaries, and scope

• Figures Schedule SE Part I and Form 8959 Part II in whole cents (half-up rounding) across all 5 filing statuses for 2025 and 2026.
• Uses the net earnings multiplier in 26 U.S.C. § 1402(a)(12) and the $400.00 floor in § 1402(b)(2) ([How It Works](#how-it-works)). Church employee pay, the Part II optional methods, unreported tips (Form 4137) and Form 8919 wages (Schedule SE lines 8b and 8c) are not modeled.
• A self-employed nonresident alien living in the United States owes this tax only when an international social security agreement covers them, as the Instructions for Schedule SE state. This page does not check that. It shows a tax for any status you pick.
• Wages: enter your Social Security wages (boxes 3 and 7) and, when it is higher, your Medicare wages (box 5), each added over all your jobs. Box 5 sets the surtax threshold. Box 3 sets the Social Security cap. A joint return adds your spouse's box 5 wages to the threshold only.
• Joint returns: your spouse's business profit is not an input. Form 8959 line 8 combines the self-employment income of both spouses. If you both have business profit, the surtax here is too low, and your spouse's own Schedule SE tax is not figured. Use the additional Medicare tax calculator for that case.
• A net loss owes no self-employment tax. The Form 8959 instructions say a self-employment loss shouldn’t be considered for the surtax. Enter $0 for a loss year. With two or more businesses, enter the combined profit, because a loss in one reduces the income of another.
• The totals include the surtax on self-employment income (Part II) only. The surtax on wages above the threshold (Part I) is separate. So are regular income tax and the QBI write-off. So are state LLC fees (see the California LLC annual tax and fee calculator). Your employer withholds 0.9% on wages over $200,000.00 in a calendar year (IRS Publication 15 requires it).

These figures are estimates for learning and planning, not financial, tax, legal or investment advice. Terms of use.

What to do with your Schedule SE numbers

Send your profit and wages to the quarterly estimated tax calculator with the link above. It adds your income tax and splits the total into 4 payments. The link leaves out your wages when your Medicare wages are higher than your Social Security wages and those are still under the wage base, because that page has one wage box.

You generally have to pay estimated tax when both of these hold. You expect to owe at least $1,000.00 for the year after subtracting withholding and refundable credits. And you expect your withholding and refundable credits to be less than the smaller of 90% of this year's tax or 100% of last year's tax. Last year's tax counts only if that return covered all 12 months. This page figures self-employment tax only, so those tests apply to your whole tax bill, income tax included.

Most taxpayers avoid the underpayment penalty when their balance after withholding and credits is under the first test's amount, or when they pay in at least the smaller amount in the second test across the 4 payment dates. If a payment was missed or short, the IRS penalty and interest calculator estimates the cost.

Several things change those tests. If last year's adjusted gross income was over $150,000.00 ($75,000.00 if you file separately this year), use 110% of last year's tax. If at least two-thirds of your gross income is from farming or fishing, use two-thirds in place of the current-year percentage and skip the 110% rule. You need no estimated tax at all if you owed no tax last year, were a U.S. citizen or resident alien for the whole of last year, and last year covered 12 months.

If you also hold a W-2 job or file with a W-2 spouse, you can raise Form W-4 Step 4(c) withholding instead of mailing checks. Use the federal paycheck withholding calculator to test the per-paycheck change.

Cut your total tax bill by pairing your Schedule 1 line 15 write-off with retirement savings. Compare solo 401(k) and IRA savings in the 401(k) calculator and the Roth vs. traditional calculator. A loss year owes no self-employment tax. To see how a business loss can offset income tax in other years, use the net operating loss calculator.

Self-employment tax questions