Compute your SE tax (Social Security + Medicare), the deductible half, and its impact on your AGI. Built for freelancers, 1099 contractors, sole proprietors, and single-member LLCs.
Enter Your Self-Employment Details
Tax Year 2025 · Schedule SE rates
Business Income
Gross Business Revenue Total before any deductions
When you're self-employed, you pay both the employee and employer portions of Social Security and Medicare. That's 12.4% SS + 2.9% Medicare = 15.3% total. Employees only pay 7.65% because their employer covers the other half.
The 92.35% Multiplier
You don't pay SE tax on 100% of net self-employment income. The IRS applies a 92.35% factor (equivalent to 1 - 7.65%) to approximate the "employer deduction." So SE tax = Net Income × 92.35% × 15.3%.
The Deductible Half
You can deduct 50% of SE tax as an above-the-line adjustment to income on Form 1040. This reduces your AGI (and potentially your income tax bracket) without requiring itemizing.
Social Security Wage Base 2025
The SS wage base for 2025 is $176,100. Income above this threshold is still subject to the 2.9% Medicare tax — but not the 12.4% Social Security portion. High earners (over $200k single / $250k joint) also pay a 0.9% Additional Medicare Tax.
📊 2025 SE Tax Rates
Social Security Rate12.4%
Medicare Rate2.9%
Total SE Rate15.3%
SE Tax Base Factor92.35%
SS Wage Base$176,100
Add'l Medicare Threshold$200k / $250k
Add'l Medicare Rate+0.9%
Deductible Portion50%
💡 Reduce Your SE Tax
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S-Corp Election: Pay yourself a reasonable salary; take remaining profit as distributions — no SE tax on distributions.
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SEP-IRA: Contribute up to 25% of net SE income (max $70,000) — fully deductible, reduces net income subject to SE tax.
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Home Office: Deduct the business portion of home expenses — reduces net SE income directly.
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Vehicle Expenses: Track business miles at 70¢/mile (2025) or deduct actual expenses including depreciation.