Self Employment Tax Calculator
This calculator estimates self-employment tax (Social Security and Medicare) and provides a simple federal income tax estimate and suggested quarterly payment. It supports a detailed split of taxes and a quick rule-of-thumb mode.
Results are estimates only. Use the detailed mode for closer alignment with IRS-defined components (net earnings, Social Security wage base, Additional Medicare Tax thresholds). Do not consider this a substitute for professional tax advice.
Calculates net earnings at 92.35% of profit, splits Social Security and Medicare, applies an optional Social Security wage base cap, and applies Additional Medicare Tax thresholds by filing status.
Inputs
Results
Net earnings from self-employment
$60,027.50
Self-employment tax (total)
$9,184.21
Deductible employer-equivalent portion
$4,592.10
Simple federal income tax estimate
$13,289.74
Estimated total tax liability
$22,473.94
Suggested quarterly payment
$5,618.49
| Output | Value | Unit |
|---|---|---|
| Net earnings from self-employment | $60,027.50 | USD |
| Self-employment tax (total) | $9,184.21 | USD |
| Deductible employer-equivalent portion | $4,592.10 | USD |
| Simple federal income tax estimate | $13,289.74 | USD |
| Estimated total tax liability | $22,473.94 | USD |
| Suggested quarterly payment | $5,618.49 | USD |
Visualization
Methodology
Net earnings from self-employment are computed as 92.35% of net profit (gross receipts minus allowable business expenses) to reflect the IRS calculation for self-employment tax.
Self-employment tax is split into Social Security (12.4% on the applicable wage base) and Medicare (2.9% on net earnings). Additional Medicare Tax (0.9%) is applied on earnings above filing-status thresholds. The calculator optionally applies a Social Security wage base if provided.
Income tax is estimated by applying a user-provided effective federal tax rate to a simplified taxable income estimate (other taxable income plus net profit minus the deductible half of SE tax). This is a simplified approach for planning and is not a substitute for a full tax return calculation.
Worked examples
Example (detailed): Gross income $80,000; expenses $15,000; net earnings = ($80,000 − $15,000) × 0.9235 = $60,372. Self-employment tax splits into Social Security, Medicare, and any Additional Medicare as applicable. The employer-equivalent deduction reduces estimated taxable income.
Example (quick): Same profit with 15.3% applied to net earnings gives a fast SE tax estimate without wage-base capping or Additional Medicare splitting.
Key takeaways
Use the detailed mode for closer alignment with IRS calculations. Use the quick mode for a fast planning estimate.
Enter a Social Security wage base to cap the Social Security portion when you know the current year wage base. Leave it zero to ignore the cap (useful for partial-year planning or when other wages are not known).
Further resources
External guidance
Expert Q&A
Is this an exact tax return calculation?
No. This tool produces planning estimates only and does not replace a tax return, professional advice, or software that computes tax with full schedules and credits.
Where do the rates come from?
The calculator uses common statutory SE tax rates (12.4% Social Security, 2.9% Medicare, plus 0.9% Additional Medicare above thresholds). Wage bases and exact thresholds change yearly; enter a wage base value if you want the cap applied.
Why do you use 92.35% of net profit?
The IRS prescribes that net earnings subject to self-employment tax are generally 92.35% of net profit to account for the employer-equivalent portion that self-employed people effectively pay.
Is this tool secure and reliable?
We follow recognized security and testing practices (see citations) for data handling. Accuracy depends on user inputs and assumptions; always verify with official IRS guidance or a tax professional.
Sources & citations
- IRS — Self-Employment Tax — https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax
- NIST — Cybersecurity and data handling guidance — https://www.nist.gov/cyberframework
- ISO — Information security management (reference) — https://www.iso.org/isoiec-27001-information-security.html
- IEEE Standards Association — https://standards.ieee.org
- OSHA — workplace standards and guidance — https://www.osha.gov