Self Employment Tax Calculator 2025

Q: What is self-employment tax?

Self-employment tax is Social Security and Medicare tax applied to net earnings from self-employment. Employees typically split these taxes with an employer; self-employed individuals generally pay both portions.

Q: Why does the calculator use 92.35% of net profit?

A common Schedule SE step is to compute net earnings as a percentage of net profit before applying SE tax rates. This calculator uses 92.35% as a standard approximation for planning.

What this calculator covers

If you’re a freelancer, contractor, or small business owner, you typically owe self-employment tax in addition to income tax. This calculator estimates your Schedule SE tax using standard mechanics: net profit → 92.35% net earnings → Social Security + Medicare. For official references, see IRS Schedule SE overview and the Schedule C overview. For a plain-English explanation of 1099/self-employed taxes, see NerdWallet’s freelancer tax guide and a definitions-first reference at Investopedia.

Self-employment tax rates: 12.4% Social Security + 2.9% Medicare (15.3% total on net earnings)

Social Security wage base (planning assumption used here): $168,600

50% SE tax deduction shown as an above-the-line deduction (Schedule 1 concept)

Quarterly planning output: SE-related taxes ÷ 4 (income tax not included)

Inputs

Filing Status

Net self-employment income Schedule C net profit (after business expenses).

W-2 Medicare wages (if any) Used to determine (a) remaining Social Security wage base room and (b) Additional Medicare threshold tests.

Other taxable income (optional) Displayed for context only (does not drive Additional Medicare tax in this simplified model).

Want to validate with a second method? Compare your scenario against the IRS guidance on self-employed taxes and quarterly planning rules on estimated taxes.

Results

Schedule SE tax (SS + Medicare)

Net SE income$0

Net earnings (92.35%)$0

Social Security portion (12.4%)$0

Medicare portion (2.9%)$0

Additional Medicare tax (0.9%)$0

50% SE tax deduction$0

SE + Additional Medicare (total)$0

Quarterly planning amount

$0 per quarter

Need help optimizing SE taxes?

If you have mixed W-2 + 1099 income, multi-state activity, or are considering an S-Corp election, planning can materially change your outcome.

Talk to NexGen Taxes

How self-employment tax is computed

Start with net profit

Use Schedule C net profit after business expenses. If you’re unsure what counts, the IRS provides a Schedule C overview and examples.

Apply 92.35%

SE tax is generally computed on net earnings (often 92.35% of net profit). This is the standard Schedule SE mechanic.

Split into SS + Medicare

Social Security has a wage base limit; Medicare generally does not. A simple reference: Investopedia’s explainer and the IRS SE tax center.

Plan quarterly payments

Quarterly estimates depend on total tax (income tax + SE-related taxes). This tool shows an SE-focused quarterly number; for broader planning, see the IRS estimated tax overview.

Frequently asked questions

What is self-employment tax?+

Self-employment tax is the Social Security and Medicare tax applied to net earnings from self-employment. Employees typically split these taxes with an employer; self-employed individuals generally pay both portions. See Investopedia’s overview and the IRS SE Tax Center.

Why does the calculator use 92.35%?+

A common Schedule SE step is to compute net earnings (a percentage of net profit) before applying SE tax rates. This is a standard “net earnings” adjustment used in SE tax mechanics (and is also described across many practitioner resources). For the official framework, start with Schedule SE.

Does Additional Medicare tax count as “SE tax”?+

Additional Medicare tax (0.9%) is a separate calculation that can apply when Medicare wages and/or net earnings exceed thresholds. This tool shows it separately and also shows a combined total for planning. For background, see IRS Topic 560 (Additional Medicare Tax).

Do I need to pay quarterly estimated taxes?+

Many self-employed taxpayers should consider quarterly payments if they expect to owe a meaningful amount at filing time. The IRS overview is here: Estimated taxes. For a practical freelancer-focused explanation, see NerdWallet.

What forms are commonly involved?+

Common forms include Schedule C (business profit), Schedule SE (SE tax computation), and Form 1040-ES (estimated tax vouchers). Start at the IRS pages for Schedule C and Schedule SE.

Self-Employment Tax Calculator 2025

What this calculator covers

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