Self-employment tax calculator
Social Security and Medicare on self-employed profit, with the 92.35% adjustment, the wage-base offset from any W-2 job, and the deductible half.
Covers 2026 payroll year · rates as at 2026-01-01
Self-employment tax
Estimate$11,304
15.3% on 73,880 of net earnings, half of it deductible
- Social Security portion
- $9,161.12
- Medicare portion
- $2,142.52
- Deductible half
- $5,651.82
| Net profit | $80,000 |
|---|---|
| Net earnings (92.35%) | $73,880 |
| Social Security 12.4% | -$9,161.12 |
| Medicare 2.9% | -$2,142.52 |
| Total | -$11,304 |
- This is on top of federal income tax, not instead of it.
On $80,000 of net profit, 15.3% applies to $73,880 of net earnings — about $11,304, with roughly $5,652 deductible above the line.
How this is calculated
How this is calculated
Why 92.35% and not 100%
An employee pays 7.65% and the employer pays the other 7.65% as a deductible business expense. The 92.35% multiplier is the statutory stand-in for that deduction, so $80,000 of profit is charged on $73,880.
net earnings = profit × 0.9235W-2 wages fill the wage base first
Social Security stops at $184,500 of combined wages and net earnings. If a job already paid you $150,000, only $34,500 of your profit is charged the 12.4% — the remainder pays Medicare alone.
SS earnings = min(net earnings, 184,500 − W-2 wages)Half is deductible, but not the surtax
One half of the 15.3% comes off adjusted gross income as an above-the-line deduction. The 0.9% Additional Medicare above $200,000 is not deductible, which is why the deductible half is smaller than half the total for high earners.
Worked example: $80,000 of net profit, no W-2 job
| Net profit | $80,000 |
|---|---|
| W-2 wages | $0 |
| Net earnings | $73,880 |
|---|---|
| Self-employment tax | about $11,304 |
| Deductible half | about $5,652 |
That $11,304 is due on top of federal income tax, and nobody withholds it for you — it lands as four quarterly estimated payments.
What this assumes
- Sole proprietor or single-member LLC filing Schedule C.
- Profit is already net of business expenses.
- No S-corporation salary split.
- Federal self-employment tax only, no income tax.
Where this commonly goes wrong
- Nobody withholds this, so a first profitable year commonly produces both a large bill and an underpayment penalty at filing.
- A loss year still owes zero self-employment tax but also earns zero Social Security credits, which reduces your eventual benefit.
- Two jobs plus a business can over-collect Social Security across employers — the excess only comes back through your return.
Questions
How much is self-employment tax?
15.3% — 12.4% Social Security and 2.9% Medicare — charged on 92.35% of net profit. On $80,000 of profit that is roughly $11,304, of which about $5,652 is deductible against your income tax.
Why is it charged on 92.35% of profit?
An employer would deduct its 7.65% share as a business expense. The 92.35% multiplier gives the self-employed the equivalent relief, so $80,000 of profit is charged on $73,880 of net earnings.
Do I still pay it if I also have a job?
Yes for Medicare, and partly for Social Security. W-2 wages fill the $184,500 wage base first, so if a job paid $150,000 only $34,500 of profit is charged the 12.4%. The 2.9% Medicare applies to all of it.
When do I have to pay it?
Quarterly, alongside estimated income tax — mid April, June, September and the following January. Waiting until you file triggers an underpayment penalty even if you pay the full amount then.
Can an S-corporation reduce it?
Sometimes. An S-corp pays FICA on a reasonable salary only, leaving distributions free of it. The saving has to cover payroll and filing costs, and an unreasonably low salary is a well-known audit trigger.
Is there a minimum before it applies?
Yes — $400 of net earnings. Below that no self-employment tax is due, though the income is still reportable for income tax and earns no Social Security credits.
Related tools
Sources
Estimate only, based on published IRS figures for 2026 payroll year. Not tax or legal advice. Confirm your position with the IRS, a CPA, or an enrolled agent.
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