Calculate your exact SE tax, Social Security, and Medicare amounts. See how deductions reduce your bill and what you can deduct to pay less.
Only deductions that reduce net self-employment income affect SE tax.
These reduce income tax but NOT self-employment tax.
12.4% goes to Social Security (up to $168,600 in wages) + 2.9% goes to Medicare (no limit). Together: 15.3% SE tax.
The IRS multiplies net income by 92.35% before applying 15.3%. This accounts for the employer-side deduction that employees get automatically.
You can deduct 50% of SE tax from your gross income — like employers do for payroll taxes. This reduces income tax but not SE tax itself.
Only reducing net self-employment income reduces SE tax. Business expenses, mileage, and home office all reduce net income — and therefore SE tax.
SEP-IRA and 401(k) contributions reduce income tax but NOT self-employment tax. SE tax is calculated before retirement deductions.
Income above $200K (single) or $250K (married) is subject to an additional 0.9% Medicare tax. This is separate from SE tax and not shown in basic calculators.
False. Retirement contributions reduce your adjusted gross income and income tax — but SE tax is calculated on net self-employment income before retirement deductions. Business expenses reduce both.
False. SE tax (15.3%) is in addition to federal income tax. Most 1099 workers pay 25–35% total: roughly 14% SE tax (after the half deduction) + 12–22% income tax.
An LLC by itself does not change SE tax. Only an S-Corp election allows you to split income into salary + distributions — reducing SE tax on the distribution portion.
SE tax and income tax are separate. SE tax funds Social Security and Medicare. Income tax funds general government. They are calculated differently and paid together but are distinct obligations.
Not sure if an expense reduces SE tax or just income tax? Ask and get a clear, specific answer instantly.
Log income and expenses monthly. Your SE tax estimate updates in real time — no April surprises.
SE tax is paid through quarterly estimated payments. We remind you before every deadline with your exact amount.
Self-employment tax is 15.3% of 92.35% of net self-employment income. It consists of 12.4% Social Security tax and 2.9% Medicare tax. Self-employed workers pay both the employee and employer share, unlike W2 employees who split it with their employer.
Yes. You can deduct half of your SE tax (7.65%) from gross income as an above-the-line deduction. This reduces AGI and therefore income tax. The calculator above shows this deduction.
Yes. In 2026, the Social Security wage base is $168,600. Income above this is subject to only the 2.9% Medicare tax. The calculator above applies this limit automatically.
You owe SE tax on net self-employment income — gross 1099 minus business expenses. The IRS multiplies net income by 92.35% before applying 15.3%. Enter your deductions above to see your actual SE tax.
Reduce net self-employment income through legitimate deductions: business expenses, mileage (67¢/mile), and home office. These reduce both SE tax and income tax. Retirement contributions reduce income tax but not SE tax.
ClickTaxEasy calculates your SE tax automatically based on your monthly income — so you always know what to set aside.
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