calculator · self-employment tax
understand your se tax burden
Break down exactly what you owe in self-employment tax, including Social Security and Medicare portions.
your info
Filing status affects Additional Medicare Tax threshold.
total se tax
$10,597.16
social security
$8,588.55
12.4% up to $168,600
medicare + additional
$2,008.61
2.9% + 0.9% over threshold
half se deduction (1040 line 15): $5,298.58
This reduces your federal taxable income.
what this means for you
As a sole proprietor, you're both the employee and employer, so you pay the full 15.3% self-employment tax (both sides of FICA) on 92.35% of your net profit. This is significantly higher than a W-2 employee, who only pays 7.65% while their employer covers the other half.
The good news: half of your SE tax is deductible above-the-line on line 15 of your Form 1040. This lowers your federal taxable income even if you take the standard deduction.
Example: At $75,000 profit, you owe $10,597.16 in SE tax, but $5,298.58 reduces your taxable income.
wondering about s-corp savings?
If your profit is substantial, electing S-corp status could save you thousands on self-employment tax. Check your breakeven.
s-corp breakeven calculatorDisclaimer: This calculator is for educational purposes only and does not constitute tax or legal advice. Please consult with a credentialed tax professional or CPA before making tax decisions.