Self-employment tax calculator
See the Social Security and Medicare tax on your business income, line by line. It’s an estimate from your numbers, not advice; Krystal checks the real picture on a call.
Start from an example
Gross income minus business expenses (Schedule C, line 31).
W-2 wages
W-2 wages count toward the Social Security wage base first.
Estimated self-employment tax
Illustrative$14,130 / year
Tax year 2026. About $3,532 a quarter.
- Quarterly payment
- $3,532
- $1,177 a month
- Effective rate
- 14.1%
- Of net SE income
- Deductible half
- $7,065
- Reduces your AGI
- Net income
- $85,870
- After SE tax
Line by line
Social Security applies to $92,350 of earnings. Medicare has no cap.
| Line item | Amount |
|---|---|
| Net self-employment income | $100,000 |
| Earnings taxed (92.35%) | $92,350 |
| Social Security, employee half (6.2%) | $5,726 |
| Social Security, employer half (6.2%) | $5,726 |
| Medicare, employee half (1.45%) | $1,339 |
| Medicare, employer half (1.45%) | $1,339 |
| Total self-employment tax | $14,130 |
Half of it, $7,065, is deductible and reduces your AGI.
Social Security wage base
$184,500 for 2026. Social Security (12.4%) stops at the wage base; Medicare (2.9%) doesn’t. W-2 wages count toward it first.
Earnings toward the wage base
Your earnings taxed (after 92.35%)
$92,350
Earnings toward the wage base: $92,350
| Mark | Value |
|---|---|
| Earnings toward the wage base | $92,350 |
| Wage base | $184,500 |
Your earnings are under the wage base, so all of them carry the 12.4% Social Security tax.
As a W-2 paycheck
An employee pays 7.65% of FICA and the employer pays the other 7.65%. Self-employed, you pay both halves.
| Line item | Amount |
|---|---|
| Your net self-employment income | $100,000 |
| Take-home after SE tax | $85,870 |
| W-2 salary with the same take-home | $92,984 |
| Employer half of FICA on that salary | +$7,113 |
| Cost to an employer | $100,097 |
As an S-Corp
An illustration with a salary of 60% of profit and the rest taken as distributions. S-Corp running costs aren’t included.
Comparison
Today · Self-employment tax: $14,130
| Item | Value |
|---|---|
| Today · Self-employment tax | $14,130 |
| S-Corp · Payroll tax | $9,180 |
Estimated difference: $4,950 a year, before running costs.
At this income an S-Corp election may lower your payroll tax. The salary has to be reasonable for the work you do, so the real figure depends on your numbers.
Run the S-Corp calculatorAt other income levels
The effective rate falls above the Social Security wage base, where only Medicare applies.
Self-employment tax by income
$25K: $3,532 (14.1%)
| Label | Value |
|---|---|
| $25K | $3,532 (14.1%) |
| $50K | $7,065 (14.1%) |
| $75K | $10,597 (14.1%) |
| $100K (you) | $14,130 (14.1%) |
| $150K | $21,194 (14.1%) |
| $200K | $28,234 (14.1%) |
| $250K | $29,851 (11.9%) |
| $300K | $31,606 (10.5%) |
| Income | Self-employment tax | Effective rate |
|---|---|---|
| $25K | $3,532 | 14.1% |
| $50K | $7,065 | 14.1% |
| $75K | $10,597 | 14.1% |
| $100KYou | $14,130 | 14.1% |
| $150K | $21,194 | 14.1% |
| $200K | $28,234 | 14.1% |
| $250K | $29,851 | 11.9% |
| $300K | $31,606 | 10.5% |
Tax year 2026. Self-employment tax only; income tax is left out. Results vary. This is not tax advice.
See it across several years
The multi-year tax planner starts from these numbers and shows the wider picture.
Method
How the estimate works.
What the calculator works out
Self-employment tax is the Social Security and Medicare tax for people who work for themselves. An employee pays half (7.65%) and the employer pays the other half; self-employed, you pay both, 15.3%.
- Social Security (12.4%) up to the wage base for the tax year; W-2 wages count toward it first
- Medicare (2.9%) on all earnings, with no cap
- Additional Medicare (0.9%) above $200,000 single or head of household, or $250,000 married filing jointly
The 92.35% factor
The tax applies to 92.35% of net self-employment earnings, not all of them. That mirrors an employee, who doesn’t pay tax on the employer’s half of FICA. Half of the tax itself is then deductible when figuring AGI.
What it leaves out
- Federal and state income tax.
- A spouse’s self-employment income.
- The S-Corp preview leaves out payroll and filing costs, and uses a fixed salary share.
Krystal covers those on a call.
Ways the tax can come down
- An S-Corp election: payroll tax applies to a reasonable salary, not to distributions above it.
- Business expenses you can document lower net profit, and the tax with it.
FAQ
Self-employment tax questions.
What is the self-employment tax rate?
The self-employment tax rate is 15.3%, consisting of 12.4% for Social Security and 2.9% for Medicare. Self-employed individuals pay both the employee and employer portions. However, only 92.35% of your net SE income is subject to this tax.
Why do I pay both halves of Social Security and Medicare?
As a W-2 employee, your employer pays half of FICA taxes (7.65%) and you pay the other half through paycheck withholding. When you're self-employed, you are both the employer and employee, so you pay both halves — the full 15.3%.
What is the 92.35% factor?
The IRS allows you to reduce your net SE income by 7.65% (to 92.35%) before calculating SE tax. This mirrors the fact that W-2 employees don't pay tax on the employer's share of FICA. It's a small but automatic deduction built into the calculation.
How can I reduce my self-employment tax?
Electing S-Corp status and paying a reasonable salary is the main lever. Retirement contributions and self-employed health insurance lower income tax, not self-employment tax.
When do I stop paying Social Security tax?
Social Security tax (12.4%) only applies up to the wage base limit — $184,500 for 2026. Income above this cap is only subject to Medicare tax (2.9% + 0.9% Additional Medicare Tax for high earners). If you have W-2 wages, they count toward the cap first.
Do I have to pay quarterly estimated taxes?
Yes, if you expect to owe $1,000 or more in taxes for the year and don't have sufficient withholding from other income sources. The IRS expects you to pay as you earn throughout the year. Failure to make quarterly payments can result in underpayment penalties.
Keep reading
Related.
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Quarterly estimated tax calculator
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