Self-Employment Tax Calculator 2025 / 2026
Self-employed individuals pay both the employer and employee portions of Social Security and Medicare taxes, totaling 15.3% of net income up to the Social Security wage base (dollar 176,100 for 2025), then 2.9% Medicare above that threshold. This calculator computes your self-employment tax on Schedule SE, shows the breakdown between Social Security and Medicare portions, and calculates the deductible half of SE tax that reduces your adjusted gross income. The calculator applies the 92.35% income adjustment (the IRS Schedule SE multiplier) and accounts for the annual Social Security wage base limit, automatically switching between years. Results are sourced from IRS Publication 533 and the Social Security Administration's contribution and benefit base announcements.
On $80,000.00 net self-employment income in 2025, your SE tax is approximately $11,303.64. You can deduct $5,651.82 (half the SE tax) from your gross income on Schedule 1.
How self-employment tax works
When you work for an employer, your employer pays half of FICA (Social Security and Medicare) and you pay the other half through payroll withholding. When you are self-employed, you pay both halves yourself. The combined rate is 15.3%: 12.4% for Social Security and 2.9% for Medicare.
However, IRS Schedule SE first reduces your net self-employment income by 7.65% (multiplying by 0.9235) before applying the rate. This mirrors the employee experience, where FICA is calculated on wages before the employer's matching share is added. After computing the SE tax, you may deduct half of it from your adjusted gross income on Schedule 1, Line 15.
adjusted net = net SE income x 0.9235
SE tax = min(adjusted net, SS wage base) x 0.153 + max(0, adjusted net - SS wage base) x 0.029
deductible amount = SE tax / 2
taxable income = net SE income - deductible amount
Worked example for 2025
Suppose a freelancer has $80,000.00 in net self-employment income for 2025. The Social Security wage base is $176,100.
- Adjusted net earnings: $80,000.00 x 0.9235 = $73,880.00.
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Because $73,880.00 is below the $176,100 wage base, the full 15.3% rate applies:
SS portion (12.4%): $73,880.00 x 0.124 = $9,161.12.
Medicare portion (2.9%): $73,880.00 x 0.029 = $2,142.52. - Total SE tax: $9,161.12 + $2,142.52 = $11,303.64.
- Deductible half: $11,303.64 / 2 = $5,651.82.
- Income subject to federal income tax: $80,000.00 - $5,651.82 = $74,348.18.
SE tax above the Social Security wage base
If your adjusted net earnings exceed $176,100 (the 2025 SS wage base), only the 2.9% Medicare portion applies to the excess. There is no cap on Medicare. For example, on adjusted net earnings of $200,000:
- SS tax: $176,100 x 12.4% = $21,836.40.
- Medicare on full amount: $200,000 x 2.9% = $5,800.00.
- Total SE tax: $27,636.40.
Note that Additional Medicare Tax (0.9%) applies to wages and self-employment income above $200,000 (single filers), but it is computed separately on Form 8959, not as part of Schedule SE.
Self-employment tax: frequently asked questions
What is the self-employment tax rate?
The self-employment tax rate is 15.3% on net self-employment earnings up to the Social Security wage base ($176,100 for 2025). Above that threshold, only the 2.9% Medicare portion applies. The rate breaks down as 12.4% Social Security plus 2.9% Medicare. Source: IRS Publication 533.
Why is only 92.35% of my net income taxed?
IRS Schedule SE multiplies your net self-employment income by 0.9235 (92.35%) before computing the tax. This adjustment mirrors the fact that employees only pay FICA on their wages, not on the employer's matching contribution. The 7.65% reduction is the equivalent of the employer half of FICA that employees never see in their paycheck.
Can I deduct self-employment tax?
Yes. You can deduct half of your SE tax from your gross income on Schedule 1 (Form 1040), Line 15. This deduction reduces your adjusted gross income and therefore your federal income tax, though it does not reduce the SE tax itself. The calculator shows this deductible amount in the results.
Do I pay self-employment tax if I earned less than $400?
No. The IRS does not require you to pay self-employment tax or file Schedule SE if your net self-employment income is less than $400 for the year. Source: IRS Schedule SE instructions.
Official sources
- SE tax rates and Schedule SE instructions: IRS Publication 533, Self-Employment Tax.
- Schedule SE form and instructions: IRS Schedule SE (Form 1040).
- 2025 Social Security wage base ($176,100): SSA Contribution and Benefit Base.
- Additional Medicare Tax (Form 8959): IRS Topic 560, Additional Medicare Tax.
Reviewed by the CalculatorHub team, edited by James Graham, 12 June 2026. See our methodology. General information, not financial or tax advice.