Tax Calculators

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.

Inputs
$

Estimates only. Adjust any value to recalculate instantly.

Results
2016 self-employment tax $12,717 15.3% on $83,115 of net earnings
Social Security portion (12.4%) $10,306
Medicare portion (2.9%) $2,410
Total SE tax $12,717
Deductible half $6,358
Self-employment tax
Self-employment tax Social Security: $10kMedicare: $2.4k
  • Social Security $10k
  • Medicare $2.4k

Because you are both employer and employee, you pay the full 15.3% — 12.4% Social Security (up to the $118,500 2016 wage base) plus 2.9% Medicare — on 92.35% of net earnings. You can deduct half ($6,358) as an above-the-line deduction on your income taxes.

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

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

The formula

2016 SE tax = 12.4% × min(net × 0.9235, $118,500) + 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.

Frequently asked

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.