What is the self-employment tax rate?

The combined self-employment tax rate is 15.3%, consisting of 12.4% Social Security and 2.9% Medicare for eligible earnings.

Why does the calculator use 92.35% of business income?

The IRS allows a deduction for the employer-equivalent portion of self-employment tax, so self-employment tax is computed on 92.35% of net earnings.

Yes. The Social Security portion is only applied up to the annual Social Security wage base, which is capped each year by the IRS.

This calculator focuses on the basic self-employment tax formula and may not include the additional 0.9% Medicare tax for very high-income earners.

2026

1

Tax is based on your self-employment earnings after ordinary deductible business costs.

2

The IRS allows a deduction for the employer-equivalent share of payroll tax before calculating SE tax.

3

Most earnings are subject to 12.4% Social Security and 2.9% Medicare, with caps and thresholds applied.

4

The final number is the combined tax that must be set aside before filing your annual return.

Worked example

What does 92.35% mean here?+

It reflects the IRS deduction that recognizes the employer-side payroll taxes you would normally pay in a W-2 job.

Does this include income tax?+

Is Social Security tax always owed?+

Do I need to pay this if I have a side hustle?+