Approximate SE tax as net income × 0.9235 × 0.153 and show the effective rate on net income.
Overview
Self-employment tax covers Social Security and Medicare for people who work for themselves.
This calculator uses a common approximation: taxable SE earnings ≈ 92.35% of net income, then 15.3% combined SE rate (before wage-base caps).
High earners may hit the Social Security wage base; this simplified model does not cap—use tax software for filing.
Steps
Profit after business expenses.
Review SE tax and effective rate on net income.
Divide annual SE tax into quarterly payments.
SE tax is separate from income tax brackets.
Lower net income reduces this estimate.
Math
seTax = netIncome × 0.9235 × 0.153
Apply the 92.35% factor, then the 15.3% SE rate used in many planning estimates.
Worked cases
60,000×0.9235×0.153 ≈ $8,469
About $8,469 SE tax (~14.1% effective).
12,000×0.9235×0.153 ≈ $1,694
About $1,694 SE tax.
100,000×0.9235×0.153 ≈ $14,114
About $14,114 before wage-base limits.
Why use this
Questions