Self-Employment Tax
The 15.3% federal tax on net earnings from self-employment, covering the employer + employee portions of Social Security and Medicare.
Full definition
When someone works for an employer, Social Security (6.2%) and Medicare (1.45%) are withheld from wages, and the employer pays a matching share. Self-employed people (sole props, freelancers, gig workers) pay both halves themselves — that's SE tax. It applies to 92.35% of net Schedule C profit and totals 15.3% up to the Social Security wage base ($168,600 in 2026), then drops to 2.9% Medicare-only above that. Solo operators frequently underestimate this — it's often the largest single line on their tax bill.
Used for
- freelancer tax planning
- solo business quarterly estimates
- gig worker tax filing
Sources
Related SailsAndShore resources
Workbooks
Free calculators
- Side Hustle Tax Reserve Calculator — Type your monthly income. See what to set aside.
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