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Freelance Finance

Self-Employment Tax Calculator

Estimate US Schedule SE tax, the deductible half, and how existing W-2 wages change your Social Security and Medicare exposure.

Net self-employment profit ($) Schedule C or partnership income subject to self-employment tax.
W-2 Social Security wages ($) Optional. Reduces remaining Social Security wage base.
W-2 Medicare wages ($) Optional. Used for Additional Medicare threshold math.
Filing status

Used for Additional Medicare thresholds.

Social Security wage base ($)

2025 default is 176,100. Edit for another tax year.

Schedule SE uses 92.35% of net profit as self-employment earnings before applying the 12.4% Social Security and 2.9% Medicare rates.

What this means

Net earnings used by Schedule SE
$92,350.00
Remaining Social Security wage base
$176,100.00
Additional Medicare threshold
$200,000

Estimated self-employment tax

$14,129.55

Effective rate on profit: 14.13%

Breakdown

Social Security tax
$11,451.40
Medicare tax
$2,678.15
Additional Medicare tax
$0.00
Schedule SE tax
$14,129.55
Deductible half of SE tax
$7,064.78
Quarterly set-aside
$3,532.39

How self-employment tax works

Self-employment tax is the freelancer version of payroll tax. Instead of splitting Social Security and Medicare with an employer, you pay both halves yourself. The IRS first multiplies net profit by 92.35%, then applies the Social Security and Medicare rates to that reduced base.

The formulas

net_earnings              = net_profit * 0.9235
social_security_taxable   = min(net_earnings, social_security_wage_base - w2_ss_wages)
social_security_tax       = social_security_taxable * 0.124
medicare_tax              = net_earnings * 0.029
schedule_se_tax           = social_security_tax + medicare_tax
deductible_half           = schedule_se_tax / 2

# Additional Medicare
combined_excess           = max(0, w2_medicare_wages + net_earnings - threshold)
wage_only_excess          = max(0, w2_medicare_wages - threshold)
additional_medicare_tax   = max(0, combined_excess - wage_only_excess) * 0.009

Why W-2 wages matter

If you also have a job, your W-2 Social Security wages use up part of the annual wage base before your freelance income does. That can sharply reduce the 12.4% portion of self-employment tax. W-2 Medicare wages also affect whether your self-employment income pushes you above the Additional Medicare threshold.

What this calculator includes

This tool estimates Schedule SE tax, the deductible half of that tax, and any Additional Medicare tax attributable to self-employment income. It does not estimate federal income tax, state income tax, quarterly penalties, QBI deductions, S-corp payroll planning, or business credits.

FAQ

Is this my total tax bill?

No. This is only payroll-style self-employment tax. You may also owe federal and state income tax.

Why does the calculator use 92.35% of profit?

That is the IRS adjustment used on Schedule SE before applying Social Security and Medicare tax rates.

Can I use this for a different tax year?

Yes. Update the Social Security wage base input for the year you care about. The default 176,100 value is the 2025 IRS Schedule SE amount.