Self-employment tax calculator (US)
In the US, self-employed people pay both halves of Social Security and Medicare tax. Enter your net profit and the Social Security wage base for the year to estimate the amount. This is an estimate, not tax advice.
Runs in your browser: nothing you enter is sent anywhere.
How to use it
- Enter your net profit for the year.
- Enter the Social Security wage base for that year. Add any wages from a job.
- Read the total and its parts.
How it works
Net earnings = profit × 0.9235. Social Security = 12.4% × the smaller of net earnings and (wage base − wages), not below zero. Medicare = 2.9% × net earnings. The total is the sum. Half of it is shown as the deductible part.
Worked example
Profit 40,000: net earnings 36,940. With a wage base of 100,000 the Social Security part is 4,580.56 and Medicare 1,071.26, total 5,651.82 (15.3% of 36,940). With profit 200,000, net earnings are 184,700; the Social Security part stops at 12.4% × 100,000 = 12,400 and Medicare is 5,356.30, total 17,756.30.
Tips
- Set money aside during the year: this tax is paid on top of income tax.
- Business expenses reduce net profit and therefore this tax.
- For a salaried view, use the paycheck take-home calculator.
Frequently asked questions
How is self-employment tax calculated?
Multiply net profit by 92.35% to get net earnings. The tax is 12.4% Social Security on earnings up to the wage base plus 2.9% Medicare on all earnings, 15.3% in total below the base.
Why do I enter the wage base myself?
The Social Security wage base is raised from year to year, so any number built into a page would soon be wrong. Enter the figure for the tax year you are calculating.
What does the optional wages box do?
Wages from a job also count toward the wage base. The Social Security part is limited to what is left of the base after those wages.
What is not included?
Income tax, the additional Medicare tax that applies at higher incomes, state taxes and any special cases. It is an estimate for orientation and not tax advice; check the tax authority's instructions or an adviser.
Why is half of the tax shown?
Half of self-employment tax can generally be deducted when working out income tax. The line is shown for information, and your own situation may differ.