Financial glossary
Self-Employment Tax
In plain English
Social Security and Medicare tax generally calculated on 92.35% of net self-employment profit, coordinated with the wage base when wages also exist.
Self-employment tax
Self-employment tax generally covers Social Security and Medicare tax on net earnings from a trade or business. It is separate from regular federal income tax.
Schedule SE generally applies the combined 12.4% Social Security and 2.9% Medicare rates to 92.35% of net self-employment profit. Social Security applies only up to the annual combined wage base, while Medicare has no equivalent cap. Additional Medicare tax can apply above filing-status thresholds.
Covered employee wages use the Social Security wage base before self-employment earnings, so taxpayers with both W-2 wages and business income must coordinate the two.
The self-employment tax calculator uses the 2026 $184,500 Social Security base and displays the potentially deductible half of regular self-employment tax separately.
Related calculators
- 2026 Self-Employment Tax CalculatorEstimate 2026 self-employment tax on business profit, including Social Security, Medicare, Additional Medicare tax, and the deductible half.
- 2026 Federal Income Tax CalculatorEstimate 2026 federal income tax using current brackets, filing status, deductions, and credits. See taxable income, marginal rate, and effective rate.
- 2026 Tax Refund EstimatorEstimate a 2026 federal refund or amount owed from projected tax liability, withholding, payments, deductions, and nonrefundable credits.