Net Earnings
$70,000
Total Tax
$18,215
Net Income
$51,785
Effective Rate
26.0%
What is the self-employment tax rate?
The self-employment tax rate is 15.3%, consisting of 12.4% for Social Security (on earnings up to $176,100 in 2025) and 2.9% for Medicare (on all earnings). An additional 0.9% Medicare surtax applies to earnings over $200,000 for single filers ($250,000 for married filing jointly).
Why is only 92.35% of net earnings taxable?
The IRS allows self-employed individuals to multiply their net earnings by 92.35% (or 0.9235) before calculating SE tax. This adjustment is equivalent to the employer-paid half of FICA that W-2 employees do not pay directly. It ensures self-employed workers are taxed on a similar basis as employees.
Can I deduct half of self-employment tax?
Yes. You can deduct the employer-equivalent portion (half) of your self-employment tax when calculating your adjusted gross income (AGI). This deduction reduces your federal income tax but does not reduce your self-employment tax itself. It is taken on Form 1040 Schedule 1.
What is Schedule SE?
Schedule SE (Self-Employment Tax) is the IRS form used to calculate your self-employment tax. It is filed with your annual tax return (Form 1040). If your net self-employment income is $400 or more, you are required to file Schedule SE and pay self-employment tax.
IRS-Aligned: This calculator uses 2025 IRS self-employment tax rates, Social Security wage base ($176,100), and federal/state income tax brackets. For complex situations, consult a tax professional.
Disclaimer: This calculator provides estimates based on current IRS rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your filing status, state of residence, deductions, and individual circumstances. Always consult a qualified tax professional or CPA before making financial decisions. Read our terms
This calculator uses official rates and thresholds from:
- IRS Publication 334 — Tax Guide for Small Business
- IRS Schedule SE — Self-Employment Tax Instructions
- IRS Topic 751 — Social Security and Medicare Withholding Rates
Last verified: March 2026 · Tax year 2025. Results are indicative — consult a qualified accountant for personalised advice.