How the estimate is formed
Schedule SE generally multiplies net profit by 92.35% to determine net earnings from self-employment. If those net earnings are below $400, self-employment tax generally does not apply. The Social Security portion is limited by the selected year's wage base after relevant W-2 Social Security wages, while Medicare tax is not subject to that wage-base limit.
Frequently asked questions
What does this self-employment tax calculator include?
It estimates Schedule SE Social Security and Medicare taxes for 2025 or 2026. It also shows the deductible employer-equivalent portion. That deduction does not include Additional Medicare Tax.
Why are W-2 wages requested?
Social Security wages from employment use part of the annual Social Security wage base before self-employment earnings are considered. Medicare tax generally has no wage-base cap, and Additional Medicare Tax depends on combined wages, self-employment earnings, and filing status.
Does this calculate all tax on business income?
No. It does not calculate federal or state income tax, credits, the qualified business income deduction, business deductions, estimated payments, penalties, or a refund. Start with net profit after allowable business expenses.