Self-Employment Tax
Self-employment tax is the 15.3% Social Security and Medicare tax that freelancers and business owners pay on their net earnings — covering both the employee and employer halves of FICA that a regular job splits with you. It's on top of income tax.
The 15.3% splits into 12.4% for Social Security, which applies only up to the annual wage base, and 2.9% for Medicare, which has no ceiling — with an additional 0.9% above higher income thresholds. It is charged on net earnings after business expenses, not on revenue, so legitimate deductions reduce it directly. Two provisions soften the total: it is calculated on 92.35% of net earnings rather than all of them, and half of the resulting tax is deductible against income tax. Because nobody withholds it for you, the usual mechanism is quarterly estimated payments, due in April, June, September and January; skipping them invites an underpayment penalty even if the final return is filed correctly.
Put it to work
Take-Home Pay Calculator
See your actual paycheck after federal tax, Social Security, Medicare, 401(k), health premiums, and state tax — per paycheck and per year (2026 figures).
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Convert an annual salary to hourly, weekly, biweekly, and monthly pay — adjusted for your real hours and weeks worked.