It approximates the employer-side FICA deduction so the self-employed person isn't taxed on the portion that would have been deducted.

Can I avoid SE tax with an S-Corp?

Partially — distributions from an S-Corp aren't subject to SE tax, but the IRS requires a reasonable W-2 salary first.

Is SE tax in addition to income tax?

Yes. SE tax replaces FICA; you still owe federal (and usually state) income tax on the same earnings.

Self-Employment Tax Calculator

See exactly what you owe in SE tax on freelance, contractor, or side-business income — including the deductible half.

Self-employment tax

Net self-employment earnings

Filing status (for additional Medicare)

How it works

Multiply net earnings by 92.35% to get the SE tax base.
Apply Social Security 12.4% up to the 2025 wage base ($176,100).
Apply Medicare 2.9% on all earnings; add 0.9% additional Medicare above $200k single / $250k MFJ.

Assumptions

Net SE earnings are after business expenses on Schedule C.
W-2 wages are not netted against the SS wage base here.
Half of SE tax is deductible above the line on Form 1040.

Frequently asked questions

Related calculators

Quarterly estimated tax
S-Corp salary
1099 vs W-2

These calculators provide estimates for general planning only and are not tax, legal, or financial advice. Always verify with a licensed CPA for your specific situation.