2025 Self-Employment Tax Calculator
If you freelance, drive, consult, sell online, or run a business as a sole proprietor, you owe self-employment tax — the Social Security and Medicare taxes that an employer would normally split with you. Enter your net profit below (and any W-2 wages, if you also have a job) to see your 2025 SE tax broken down exactly the way Schedule SE does it, including the deductible half you can claim on your return.
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How self-employment tax is figured in 2025
The confusing thing about self-employment tax is that it is not simply 15.3% of your profit. The tax code makes two adjustments that trip people up, and this calculator handles both. First, it taxes only 92.35% of your net profit, because an employee's share of the equivalent payroll tax would not itself be counted as wages — so the self-employed get the same treatment. Second, the 12.4% Social Security piece stops at the annual wage base, which for 2025 is $176,100. Everything above that is only touched by the 2.9% Medicare piece, which has no ceiling.
The practical effect is that a freelancer earning $60,000 does not owe $9,180. They owe 15.3% of $55,410 (which is 92.35% of $60,000), or about $8,478 — and they get to deduct roughly $4,239 of that on the front of their return. The breakdown table above walks through each of these steps with your own numbers so nothing is a black box.
The part most calculators get wrong: a second job
If you have a W-2 job and a side business, the Social Security wage base is shared across both. Say your day job already paid you $150,000 in Social Security wages. Only $26,100 of room remains under the $176,100 cap, so no matter how large your freelance profit is, at most $26,100 of it can be taxed for Social Security. Enter your W-2 wages above and the calculator applies this offset automatically — a detail that quietly saves higher earners a meaningful amount and that many free tools ignore entirely.
Don't get surprised in April: pay as you go
Because no one is withholding tax from your freelance income, the IRS expects you to send it in four times a year through estimated tax payments. Self-employment tax is due on top of your regular income tax, so a useful habit is to set aside a flat percentage of every payment you receive — often 25% to 30% once both taxes are combined — into a separate account. Our guide to estimated taxes for freelancers covers the deadlines and the safe-harbor rules that keep you clear of penalties.
Frequently asked questions
What is the self-employment tax rate for 2025?
It is 15.3% — 12.4% for Social Security plus 2.9% for Medicare — applied to 92.35% of your net earnings. Social Security stops at $176,100 of earnings; Medicare has no cap.
Why is it based on 92.35% of my profit?
Employees don't pay tax on their employer's share of payroll tax, so the self-employed reduce profit by 7.65% first to stay even. That is the same as multiplying by 92.35%.
Can I deduct part of it?
Yes — one-half of your base SE tax is an above-the-line deduction that lowers your taxable income. The extra 0.9% Medicare tax on high earners is not deductible.
Do I owe it on a small side gig?
If net self-employment earnings reach $400 for the year, you file Schedule SE and pay SE tax, even if you already receive Social Security benefits.