Self-Employment Tax Calculator
Example: Net self-employment earnings: 80000 $
| Total self-employment tax | $11,304 |
| Social Security portion | $9,161 |
| Medicare portion | $2,143 |
| Deductible half | $5,652 |
Worked example
On $80,000 of net self-employment earnings, the tax applies to 92.35% of it, or $73,880. The Social Security piece is 12.4% of that, about $9,161, and the Medicare piece is 2.9%, about $2,143, for a total self-employment tax near $11,304. Half of that, about $5,652, is deductible against your income tax, which softens the blow.
Frequently asked questions
Why is the rate 15.3%?
It combines the 12.4% Social Security tax and the 2.9% Medicare tax. As an employee you would split these with an employer, but self-employed people owe both halves, which is why the full rate lands on you.
Why is only 92.35% of my earnings taxed?
The law lets you multiply net earnings by 0.9235 before applying the tax, an adjustment that approximates the employer-half deduction employees effectively get. This calculator applies it automatically.
Is there a cap on this tax?
The 12.4% Social Security portion applies only up to an annual wage base that rises each year; earnings above it owe only the 2.9% Medicare portion, plus an extra 0.9% Medicare surtax at higher incomes. This tool uses the standard rates and current wage base.
Can I deduct any of it?
Yes. You can deduct one-half of your self-employment tax as an adjustment to income on your federal return, which lowers your income tax even if you do not itemize.