Self-Employment Tax Calculator 2025 β€” SS & Medicare

Calculate self-employment tax (Social Security + Medicare) on your self-employment income. Includes deductible half of SE tax and net income breakdown.

$
After business expenses, before SE tax deduction
$
Used for SS wage base calculation
SS cap: $176,100 • Medicare: no cap
$0
Total SE Tax
$0
Social Security Tax (12.4%)
$0
Medicare Tax (2.9%)
$0
Deductible Half of SE Tax

SE Tax Calculation Breakdown

How to Use This Self-Employment Tax Calculator

Enter your net self-employment income β€” your business revenue minus ordinary and necessary business expenses (but before the SE tax deduction). If you also have W-2 wages, enter them too because wages already subject to Social Security taxes reduce the SE income subject to the SS portion.

The calculator applies the 92.35% factor (1 minus the deductible employer-equivalent portion) to your net income, then calculates SS tax up to the $176,100 cap and Medicare tax on all earnings.

The Formula

Net SE Earnings = Net SE Income Γ— 0.9235
SS Tax = Min(Net SE Earnings, $176,100) Γ— 12.4%
Medicare Tax = Net SE Earnings Γ— 2.9%
Total SE Tax = SS Tax + Medicare Tax
Deductible Half = Total SE Tax Γ· 2

Example

Alex, freelance developer, $80,000 net SE income in 2025:
Net SE earnings: $80,000 Γ— 0.9235 = $73,880
SS tax: $73,880 Γ— 12.4% = $9,161
Medicare tax: $73,880 Γ— 2.9% = $2,143
Total SE tax: $11,304
Deductible half: $5,652 (reduces federal income tax)
Extended

Income vs SE Tax Chart & Breakdown

Visual chart showing how SE tax scales with income and SS cap impact

See how SE tax scales with income and where the Social Security cap creates a rate change.

Net SE IncomeSE Earnings (92.35%)SS TaxMedicare TaxTotal SE TaxEffective SE Rate

Frequently Asked Questions

What is self-employment tax?
Self-employment tax is the Social Security and Medicare tax that self-employed individuals must pay. It covers both the employee (6.2% SS + 1.45% Medicare) and employer (6.2% SS + 1.45% Medicare) portions, totaling 15.3%. Employees only pay the employee half because their employer pays the other half.
How is self-employment tax calculated?
SE tax is calculated on 92.35% of your net self-employment income (net earnings Γ— 0.9235). The Social Security portion (12.4%) applies only to the first $176,100 of net SE income in 2025. The Medicare portion (2.9%) applies to all net SE income with no cap.
Can I deduct self-employment tax?
Yes. You can deduct half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI). This deduction reduces your federal income tax, partially offsetting the SE tax burden. The deductible amount is shown in the calculator results.
What is the Social Security wage base for 2025?
The Social Security wage base (also called the SS cap) is $176,100 for 2025. This means only the first $176,100 of your net SE income is subject to the 12.4% Social Security tax. Income above this amount is only subject to the 2.9% Medicare tax.
Do I owe SE tax if I made less than $400?
No. If your net self-employment income is less than $400 for the year, you are not required to pay self-employment tax or file Schedule SE. However, you may still need to file a regular income tax return if your total income exceeds the filing threshold.