Use our free Self-Employment Tax Calculator to quickly estimate your 2024 Social Security and Medicare taxes. Perfect for freelancers, independent contractors, and small business owners, this tool helps you understand your tax obligations and the deductible portion of your SE tax.
Formula:
The Self-Employment (SE) tax covers Social Security and Medicare for individuals who work for themselves. It is typically calculated on 92.35% of your net earnings from self-employment.
- Net Earnings from Self-Employment (NESE) = Net Business Profit \u00d7 0.9235
- Social Security Tax = 12.4% of NESE (up to annual limit, e.g., $168,600 for 2024)
- Medicare Tax = 2.9% of NESE (no earnings limit)
- Total SE Tax = Social Security Tax + Medicare Tax
- Deductible Portion = Total SE Tax \u00d7 0.5 (for income tax purposes)