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15.3% Tax Rate

Self-Employment Tax Calculator

Calculate your self-employment tax (15.3%) and see how much you could save by switching to an S-Corporation.

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Enter your income details to calculate self-employment tax

Understanding Self-Employment Tax

What it is, who pays it, and how to reduce it

What is Self-Employment Tax?

Self-employment tax is a 15.3% tax that covers Social Security (12.4%) and Medicare (2.9%). It's essentially both the employer and employee portion of FICA taxes.

Social Security12.4%
Medicare2.9%
Total SE Tax Rate15.3%

Who Pays SE Tax?

  • Sole proprietors
  • Freelancers and independent contractors
  • LLC members (taxed as sole prop or partnership)
  • General partners in partnerships
  • Self-employed consultants and service providers

The S-Corporation Strategy

The most popular strategy to reduce self-employment tax is forming an S-Corporation. Here's how it works:

  • •Pay yourself a reasonable salary (subject to 15.3% payroll tax)
  • •Take remaining profits as distributions (NOT subject to SE tax)
  • •Typical savings: $5,000-$15,000+ annually
  • •Best for: Net income over $60,000/year

Stop Overpaying Self-Employment Tax

Schedule a consultation to discuss whether an S-Corporation or other entity structure could save you thousands in taxes.

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