FullCalculator

Self-Employment Tax Calculator

Calculate SE Tax

Calculate self-employment tax on net earnings

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Formula

SE Tax = (Net Income × 92.35%) × 15.3%. Social Security = min(Taxable Base, $168,600) × 12.4%. Medicare = Taxable Base × 2.9%.

Frequently Asked Questions

What is the self-employment tax rate?
The SE tax rate is 15.3%, consisting of 12.4% for Social Security and 2.9% for Medicare. This is calculated on 92.35% of net self-employment income. You effectively pay both the employee and employer portions of FICA taxes.
Why is SE tax calculated on 92.35% of income?
The 92.35% factor (100% - 7.65%) accounts for the employer-equivalent portion of FICA. As an employee, your employer pays half of FICA. As self-employed, you get an equivalent adjustment by only paying SE tax on 92.35% of net earnings.
Can I deduct self-employment tax?
You can deduct half of your self-employment tax (the employer-equivalent portion) from your gross income on Schedule 1 of Form 1040. This reduces your adjusted gross income (AGI) and your income tax, but not the SE tax itself.

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