Self-Employment Tax Calculator
Enter your net profit to estimate your Social Security and Medicare tax. Nothing you enter is saved.
Last updated November 5, 2026
How it is worked out
Your net profit is multiplied by 92.35%. Social Security tax of 12.4% applies to that amount up to the wage base, which is $184,500 for 2026 and $192,300 for 2027. W-2 wages use up the base first. Medicare tax of 2.9% applies to all of it.
Sources: Social Security wage base and IRS self-employment tax.
Questions
What is the self-employment tax rate?
15.3% of net earnings: 12.4% for Social Security, up to the year's wage base, and 2.9% for Medicare with no limit. It applies to 92.35% of your net profit.
Who has to pay self-employment tax?
Generally anyone with $400 or more in net earnings from self-employment, including most sole proprietors, partners and one-owner LLCs.
Is self-employment tax on top of income tax?
Yes. It is separate, though you can deduct half of it when working out your income tax.
Can an LLC lower self-employment tax?
An LLC taxed by default pays it the same way. An election to be taxed as an S corporation can reduce it in some cases, but it adds payroll and filing costs.
How do I pay it?
You report it on Schedule SE with your Form 1040, and generally pay during the year through quarterly estimated tax payments.
For sole proprietors and LLCs
See whether moving from LLC to S corp could help, or learnhow a sole proprietor gets an EIN.
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