$8,478self-employment tax on $60,000 of profit — 14.1% of it
| Net earnings from self-employment | $60,000 × 92.35% | $55,410 |
| Social Security, 12.4% | $55,410 of the $184,500 base | $6,871 |
| Medicare, 2.9% | $55,410 — no wage base | $1,607 |
| Deductible half of SE tax | half of $8,478, against income tax | −$4,239 |
- You deduct $4,239 of this when figuring adjusted gross income. The Additional Medicare Tax is not deductible.
- This is self-employment tax alone. Income tax is separate and sits on top.
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The figures this uses
| Figure | 2026 | Source |
|---|---|---|
| Self-employment tax rate | 15.3% — 12.4% Social Security plus 2.9% Medicare, applied to 92.35% of net profit | irs.gov |
| Filing requirement | net earnings from self-employment of $400 or more. Net earnings are 92.35% of net profit, so the crossover is about $433 of profit | irs.gov |
| Social Security wage base | $184,500 for 2026. Only Social Security has a wage base; Medicare has none | irs.gov |
| Additional Medicare Tax | 0.9% above $250,000 married filing jointly · $125,000 married filing separately · $200,000 single, head of household and qualifying surviving spouse. No employer match | irs.gov |
How the calculation works
The calculator follows the order of Schedule SE, and each step appears in the result so you can check it against your own form.
- Net earnings. Your net profit, the figure on Schedule C line 31, is multiplied by 92.35%. If the result is under $400, you owe no self-employment tax and the calculation stops there.
- Social Security, 12.4%. Charged on net earnings up to the Social Security wage base of $184,500 for 2026. If you also had W-2 wages, they fill the base first, and only what is left of it is charged at 12.4%.
- Medicare, 2.9%. Charged on all of your net earnings. There is no base.
- Additional Medicare Tax, 0.9%. Applied to the part of your net earnings and wages together that is above the threshold for your filing status: $200,000 single or head of household, $250,000 married filing jointly, $125,000 married filing separately. It is figured on Form 8959, not Schedule SE.
- The deductible half. Half of the 12.4% and 2.9% parts is deducted on Schedule 1, line 15.
The headline is steps 2 to 4 added together: the self-employment tax you pay on top of income tax.
What it leaves out
- Income tax. This is self-employment tax alone; income tax sits on top of it.
- The optional methods. In a year with a small profit or a loss you can report more net earnings to keep earning Social Security credit. See Schedule SE.
- Income that is not self-employment earnings, such as a notary's fees or most rent. Leave those out of the profit you enter. See the notary exemption and rental income.
- Farm income, which the calculator treats like any other profit; the farm optional method is not modelled.
For the filing threshold and why it catches people with small side income, see $400 is not the line most people think it is.
Common questions
Why does it start by multiplying my profit by 92.35%?
Because self-employment tax is charged on net earnings from self-employment, not on profit itself. Net earnings are 92.35% of net profit, the adjustment that stands in for the employer's half of payroll tax that an employee never sees.
I made $420 of profit. Why does it say I owe nothing?
The filing test is $400 of net earnings, not of profit. $420 × 92.35% is about $388, under the line. The crossover is about $433 of profit. Income tax can still be due on the $420.
Where does the deductible half go?
On Schedule 1, line 15, where it lowers adjusted gross income and so income tax. It does not reduce the self-employment tax itself, and the 0.9% Additional Medicare Tax is not part of it.
I have a W-2 job too. Why does that change the answer?
Your Social Security wages use up the same $184,500 base first, so less of your self-employment earnings is left for the 12.4% part. The 2.9% Medicare part has no base and applies to all of it.
This calculator is for educational purposes only and does not constitute tax, legal, or financial advice. It covers United States federal tax and simplifies in the ways noted beside each result. Consult a qualified tax professional about your situation.