What income is subject to self-employment tax?

Net profit from a business you run as a sole proprietor or single-member LLC, including freelance, contract and gig-app work, generally once it reaches $400 for the year. Net profit is income minus your business expenses, so tracking expenses lowers this tax too.

Does an S corporation avoid self-employment tax?

An S corp owner pays Social Security and Medicare through payroll on a reasonable salary instead, and profit paid out beyond that salary isn't subject to those taxes. It can save money once profit is steady, but adds payroll and a separate return.

Is this calculator exact?

It's an estimate using 2025 rates. It doesn't include the additional 0.9% Medicare tax, church employee income or farm optional methods.

Self-Employment Tax Calculator

Enter your net profit from self-employment to estimate your 2025 self-employment tax: the Social Security and Medicare tax that employers would normally split with you. It runs in your browser; nothing is sent to us.

Net self-employment profit for 2025

Business income minus business expenses (Schedule C line 31).

W-2 wages from a job, if any

Wages count toward the $176,100 Social Security wage base first.

Earnings subject to SE tax (92.35%): $0
Self-employment tax: $0
Deductible half: $0
Per quarter, SE tax only: $0

An estimate for general information, not tax advice.

How self-employment tax is calculated

Self-employment tax is 15.3% of 92.35% of your net profit: 12.4% for Social Security and 2.9% for Medicare. The Social Security part stops at the yearly wage base, $176,100 for 2025, and any W-2 wages you earned use up that base first. Medicare has no cap. An additional 0.9% Medicare tax can apply to high earners and isn't included here.

You can deduct half of your self-employment tax when figuring your income tax. Self-employment tax is on top of regular federal income tax, which depends on your total income, deductions and credits.

Paying it during the year

Nobody withholds tax from 1099 income, so the IRS expects quarterly estimated payments if you'll owe $1,000 or more: April 15, June 15, September 15 and January 15. Setting aside 25% to 30% of each payment you receive covers self-employment tax and income tax for most people.

Frequently asked questions

What income is subject to self-employment tax?: Net profit from a business you run as a sole proprietor or single-member LLC, including freelance, contract and gig-app work, generally once it reaches $400 for the year. Net profit is income minus your business expenses, so tracking expenses lowers this tax too.
Does an S corporation avoid self-employment tax?: An S corp owner pays Social Security and Medicare through payroll on a reasonable salary instead, and profit paid out beyond that salary isn't subject to those taxes. It can save money once profit is steady, but adds payroll and a separate return.
Is this calculator exact?: It's an estimate using 2025 rates. It doesn't include the additional 0.9% Medicare tax, church employee income or farm optional methods.