Self-Employment Tax Calculator: SE Tax on Net Earnings
Work out the self-employment tax owed on net business earnings — the Social Security and Medicare tax that self-employed people pay in full, both the employee and employer halves.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Self-employment tax | Net earnings after SE tax |
|---|---|---|
| 15.3% of $60,000 | 9,180 | 50,820 |
| 15.3% of $30,000 (side income) | 4,590 | 25,410 |
| 15.3% of $120,000 | 18,360 | 101,640 |
| 2.9% of $50,000 (above SS wage base) | 1,450 | 48,550 |
How This Calculator Works
Enter the SE tax rate (15.3% standard) and your net self-employment earnings. The calculator multiplies the two to give the SE tax and shows the earnings net of it. Self-employment tax is separate from and on top of federal and state income tax — budget for all three.
The Formula
Percentage of an Amount
Amount is the base value, Percentage is the rate applied to it
Worked Example
On $60,000 of net self-employment earnings at the 15.3% rate, SE tax is $9,180, leaving $50,820 before income tax. This is on top of federal and state income tax — which is why self-employed people typically set aside 25% to 35% of net earnings for total tax. The good news: half the SE tax ($4,590 here) is deductible above the line, reducing income-tax-able income.
Key Insight
Self-employment tax is the hidden cost of being your own boss. Employees pay 7.65% FICA and never see the employer's matching 7.65% — but the self-employed pay both halves, 15.3% total. On $60,000 of profit that's $9,180 before any income tax. Two mitigations: half the SE tax is deductible above the line, and an S-corp election can reduce SE tax by splitting income into a 'reasonable salary' (subject to FICA) and distributions (not subject to SE tax) — though it adds payroll and compliance cost. For profit above ~$80,000, the S-corp election often saves more than it costs.
Frequently Asked Questions
How is self-employment tax calculated?
Multiply net self-employment earnings by 15.3% (12.4% Social Security + 2.9% Medicare). $60,000 of net earnings owes $9,180. Technically it applies to 92.35% of net earnings; the exact figure comes from Schedule SE.
Why is it 15.3% when employees pay 7.65%?
Employees pay 7.65% FICA and their employer matches another 7.65% (which the employee never sees). The self-employed are both employee and employer, so they pay both halves — 15.3% total. It's the structural tax cost of self-employment.
Is self-employment tax on top of income tax?
Yes — SE tax is separate from and additional to federal and state income tax. This is why the self-employed typically set aside 25% to 35% of net earnings: roughly 15.3% SE tax plus 10% to 24% income tax, before state. Quarterly estimated payments are usually required.
Is any of it deductible?
Yes — half the self-employment tax is deductible above the line (it reduces your adjusted gross income, lowering income tax). On $9,180 of SE tax, $4,590 is deductible. This partially offsets the burden of paying both FICA halves.
Can an S-corp reduce SE tax?
Yes, often substantially above ~$80,000 of profit. An S-corp election splits income into a 'reasonable salary' (subject to FICA) and distributions (NOT subject to SE tax). The savings can exceed the added payroll and compliance cost for higher-profit businesses — consult a CPA to model your specific situation.
Related Calculators
Methodology & Review
Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) on net self-employment earnings. The Social Security portion applies only up to the annual wage base (~$168,600 in 2024); Medicare has no cap. Technically SE tax applies to 92.35% of net earnings, and half is deductible above the line — the calculator models the headline rate; consult Schedule SE for the exact figure.
Written by Ugo Candido · Last updated May 17, 2026.