What is the self-employment tax rate?

15.3% in total: 12.4% Social Security (up to the wage base) and 2.9% Medicare, applied to 92.35% of net profit.

Do I pay self-employment tax on a side hustle?

Yes, once net self-employment earnings reach $400, even if you also have a W-2 job.

Is this calculator tax advice?

No. It is an estimate. Confirm your figures with a tax professional or the IRS Schedule SE instructions.

Free tool · US tax

Self-employment tax calculator

Enter your net profit and see your estimated self-employment tax: 12.4% Social Security up to the wage base plus 2.9% Medicare, on 92.35% of profit. Then plan quarterly payments.

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Net earnings (92.35% of profit)$55,410

Social Security (12.4%)$6,871

Medicare (2.9%)$1,607

Self-employment tax$8,478

Deductible half (reduces income tax)$4,239

Per quarter, if paid in four estimates$2,119

An estimate, not tax advice. Income tax and the 0.9% Additional Medicare Tax are not included.

How self-employment tax is calculated

Self-employment tax is Social Security and Medicare for people who work for themselves. It applies to 92.35% of net profit: 12.4% for Social Security up to the annual wage base, and 2.9% for Medicare with no cap. If you also had W-2 wages, those count toward the wage base first. Below $400 of net earnings there is no self-employment tax.

Half of the tax is deductible when you work out income tax. High earners may also owe the 0.9% Additional Medicare Tax, which this calculator does not include. The wage base changes every year; the calculator defaults to the 2026 figure and you can edit it.

Paying it: quarterly estimated tax

Self-employment tax is usually paid through quarterly estimated payments along with income tax. See the quarterly estimated tax guide for due dates, and keep your profit figure current by running a P&L in HelloBooks Free.

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FAQ

Frequently asked questions

What is the self-employment tax rate?: 15.3% in total: 12.4% Social Security (up to the wage base) and 2.9% Medicare, applied to 92.35% of net profit.
Do I pay self-employment tax on a side hustle?: Yes, once net self-employment earnings reach $400, even if you also have a W-2 job.
Is this calculator tax advice?: No. It is an estimate. Confirm your figures with a tax professional or the IRS Schedule SE instructions.