Self-Employment Tax Explained (15.3%)
What self-employment tax is, how the 15.3% rate applies to 92.35% of net earnings, the Social Security wage base, and why half is deductible.
What it is
Employees split Social Security and Medicare with their employer. The self-employed pay both halves — that is self-employment (SE) tax, a total of 15.3%.
How it is calculated
SE tax applies to 92.35% of your net self-employment earnings: 12.4% Social Security up to the $184,500 wage base (2026) plus 2.9% Medicare with no cap.
Half is deductible
You can deduct one half of your SE tax when figuring your federal income tax, which softens the overall burden. SE tax is separate from and on top of income tax.
FAQ
Is SE tax the same as income tax?
No. SE tax funds Social Security and Medicare and is separate from federal income tax, which you also owe.
What about the extra Medicare tax?
An additional 0.9% Medicare tax applies to earnings above $200,000 (single) or $250,000 (married filing jointly).
Related calculators
Last updated: 2026-07-25 · This content is a 2026 reference and may differ from actual rules and rates.