What is the self-employment tax rate?

15.3% on net SE income up to the Social Security wage base ($168,600 for 2024): 12.4% Social Security + 2.9% Medicare. Above the wage base, only 2.9% Medicare applies.

You can deduct 50% of SE tax on Schedule 1 (above-the-line deduction), reducing your adjusted gross income even without itemizing.

What is the Additional Medicare Tax?

0.9% surtax on earned income above $200,000 (single) or $250,000 (MFJ). Combined with the regular Medicare rate, high earners pay 3.8% Medicare on SE income above the threshold.

What counts as net SE income?

Net SE income = Schedule C profit multiplied by 92.35% (accounting for the employer-equivalent deduction). Both employer and employee shares of FICA are borne by the self-employed person.

Does S-corp election reduce SE tax?

Yes. S-corp shareholders pay SE tax only on reasonable W-2 salary, not distributions. Can significantly reduce SE tax for profitable businesses, but must pay reasonable compensation.

US Self-Employment Tax (SE Tax) Calculator

Calculate self-employment tax: 15.3% on net SE income up to Social Security wage base ($168,600 for 2024), then 2.9% Medicare above. Includes 0.9% Additional Medicare Tax over $200,000.

Use the full interactive calculator below, or

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Frequently Asked Questions

What is the self-employment tax rate?

Can I deduct SE tax?

What is the Additional Medicare Tax?

What counts as net SE income?

Does S-corp election reduce SE tax?