Self-Employment Tax Calculator (Tax Year 2016)
If you are self-employed, operate a farm or are a church employee use this calculator to determine your self-employment taxes for 2016.
How the self-employment tax calculator (tax year 2016) works
For 2016 it takes 92.35% of your net self-employment income, charges 12.4% Social Security up to the $118,500 wage base plus 2.9% Medicare on all of it, and shows the deductible half.
Worked example: with net self-employment income of $90,000, the self-employment tax calculator (tax year 2016) shows 2016 self-employment tax of $12,717.
- Social Security portion (12.4%)
- $10,306
- Medicare portion (2.9%)
- $2,410
- Total SE tax
- $12,717
- Deductible half
- $6,358
| Net self-employment income | 2016 self-employment tax |
|---|---|
| $40,000 | $5,652 |
| $90,000 | $12,717 |
| $160,000 | $18,979 |
| $250,000 | $21,389 |
The formula
2016 SE tax = 12.4% × min(net × 0.9235, $118,500 − W-2 wages) + 2.9% × (net × 0.9235); deduction = half of the SE tax.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the self-employment tax calculator (tax year 2016)
Why do the self-employed pay more?
Employees split Social Security and Medicare taxes with their employer; the self-employed pay both halves — the full 15.3% — though they deduct half against income tax.
What was the 2016 Social Security wage base?
$118,500. The 12.4% Social Security portion applied only up to that amount; the 2.9% Medicare portion had no cap.
Is any of the SE tax deductible?
Yes — you deduct half of your self-employment tax as an above-the-line adjustment, which lowers your income tax (though not the SE tax itself).
Is the Self-Employment Tax Calculator (Tax Year 2016) free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.