Schedule SE: Self-Employment Tax Rate and Calculator
Schedule SE (Form 1040) figures self-employment (SE) tax, which the IRS says consists of 12.4% for Social Security and 2.9% for Medicare, for a combined 15.3% (12.4% plus 2.9%, our arithmetic) until the 12.4% part stops at the Social Security wage base ($176,100 for 2025, $184,500 for 2026); generally the amount subject to the tax is 92.35% of net earnings from self-employment, and the instructions say to file Schedule SE if line 4c is $400 or more.
Maintained by Archie Chang · Sources checked against IRS text on November 2, 2026 · Methodology & sources
Who must file Schedule SE and who pays SE tax
The IRS About page describes the form, and the instructions say who must file it:
“Use Schedule SE (Form 1040) to figure the tax due on net earnings from self-employment. The Social Security Administration uses the information from Schedule SE to figure your benefits under the social security program. This tax applies no matter how old you are and even if you are already getting social security or Medicare benefits.”
“You must file Schedule SE if:
The amount on line 4c of Schedule SE is $400 or more, or
You had church employee income of $108.28 or more. (Income from services you performed as a minister, member of a religious order, or Christian Science practitioner isn’t church employee income.) See Employees of Churches and Church Organizations, later.”
“Exception to filing Schedule SE. If you filed Form 4029 or Form 4361 and received IRS approval, you may not need to file Schedule SE. See Ministers, Members of Religious Orders, and Christian Science Practitioners and Members of Certain Religious Sects, later, for information on how to report your self-employment earnings.”
The instructions then say who must pay SE tax. This is a partial list: the instructions go on to ministers, members of religious sects, people employed by foreign governments, people living outside the United States, nonresident aliens, chapter 11 bankruptcy cases and others, which are not quoted here.
“You must pay SE tax if you had net earnings of $400 or more as a self-employed person. If you are in business (farm or nonfarm) for yourself, you are self-employed.
[…]
You must also pay SE tax on your share of certain partnership income and your guaranteed payments. See Partnership Income or Loss, later.”
“If you had church employee income of $108.28 or more, you must pay SE tax. Church employee income is wages you received as an employee (other than as a minister, member of a religious order, or Christian Science practitioner) of a church or qualified church-controlled organization that has a certificate in effect electing an exemption from employer social security and Medicare taxes.”
“Even if you had a loss or a small amount of income from self-employment, it may be to your benefit to file Schedule SE and use either "optional method" in the instructions for Part II of Schedule SE (discussed later).”
The self-employment tax rate and the 92.35% step
The IRS explains the amount subject to the tax and the rate in Tax Topic 554:
“You usually must pay self-employment tax if you had net earnings from self-employment of $400 or more. Generally, the amount subject to self-employment tax is 92.35% of your net earnings from self-employment. You calculate net earnings by subtracting ordinary and necessary trade or business expenses from the gross income you derived from your trade or business. You can be liable for paying self-employment tax even if you currently receive Social Security benefits. The law sets a maximum amount of net earnings subject to the Social Security tax. This amount changes annually. All of your net earnings are subject to the Medicare tax.”
“Self-employment tax rate
The law sets the self-employment tax rate as a percentage of your net earnings from self-employment. This rate consists of 12.4% for Social Security and 2.9% for Medicare taxes.”
15.3% (12.4% plus 2.9%, our arithmetic) is the sum of those two rates. The SSA lists the same combined rate for self-employed people, and the SSA wage base page gives the two rates separately:
“Tax Rate
2026
2027
Employee
7.65%
7.65%
Self-Employed
15.30%
15.30%”
“The OASDI tax rate for self-employment income in 2027 is 12.4 percent.
[…]
Tax rates under the HI program are 1.45 percent for employees and employers, each, and 2.90 percent for self-employed persons.”
In the order of the lines on Part I (the line table below has the wording):
- Line 3 combines the farm and non-farm net profit or loss; line 4a multiplies it by 92.35% (0.9235) if it is more than zero.
- Line 4c is the amount tested against $400; the form says to stop if it is less (with an exception for church employee income).
- Line 10 multiplies the smaller of line 6 or line 9 by 12.4%, where line 9 is the wage base on line 7 minus wages.
- Line 11 multiplies line 6 by 2.9%. Line 12 adds lines 10 and 11, and line 13 is half of line 12.
Social Security wage base by year
The 12.4% part applies only up to the wage base, which the 2025 Schedule SE prints on line 7. The table shows the 2025, 2026 and 2027 amounts with their sources; they equal the figures on Social Security tax limit 2027.
| Tax year | Wage base | Sources |
|---|---|---|
| 2025 | $176,100 | 2025 Instructions for Schedule SE (Form 1040), opening change notes; Schedule SE (Form 1040) 2025, line 7 |
| 2026 | $184,500 | Publication 15 (2026); line 7 and opening change notes of the early release draft 2026 Schedule SE and its instructions |
| 2027 | $192,300 | SSA, Contribution and Benefit Base and 2027 COLA fact sheet (Internet Archive captures of the ssa.gov pages) |
“Maximum income subject to social security tax. For 2025, the maximum amount of self-employment income subject to social security tax is $176,100.”
“For 2026, the social security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% total). The social security wage base limit is $184,500.”
“Maximum income subject to social security tax. For 2026, the maximum amount of self-employment income subject to social security tax is $184,500.”
“For earnings in 2027, this base is $192,300.”
“2025 176,100
2026 184,500
2027 192,300”
“Maximum Taxable Earnings
Social Security (OASDI only)
$184,500
$192,300”
Schedule SE, line by line (2025 form)
These are all the numbered lines of the 2025 Schedule SE (Form 1040), cat. no. 11358Z, created 5/7/25, with the printed notes and check box A, in the order printed. Small numbers after a few words in lines 15 and 17 are footnote markers printed in the PDF text. The form’s heading says where it goes:
“Attach to Form 1040, 1040-SR, 1040-SS, or 1040-NR.”
| Part | Line | What the IRS form says |
|---|---|---|
| Part I | Note (church employee income) | Note: If your only income subject to self-employment tax is church employee income, see instructions for how to report your income and the definition of church employee income. |
| Part I | A | If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you had $400 or more of other net earnings from self-employment, check here and continue with Part I |
| Part I | Before 1a | Skip lines 1a and 1b if you use the farm optional method in Part II. See instructions. |
| Part I | 1a | Net farm profit or (loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A |
| Part I | 1b | If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AQ |
| Part I | Before 2 | Skip line 2 if you use the nonfarm optional method in Part II. See instructions. |
| Part I | 2 | Net profit or (loss) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other than farming). See instructions for other income to report or if you are a minister or member of a religious order |
| Part I | 3 | Combine lines 1a, 1b, and 2 |
| Part I | 4a | If line 3 is more than zero, multiply line 3 by 92.35% (0.9235). Otherwise, enter amount from line 3 |
| Part I | Note under 4a | Note: If line 4a is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. |
| Part I | 4b | If you elect one or both of the optional methods, enter the total of lines 15 and 17 here |
| Part I | 4c | Combine lines 4a and 4b. If less than $400, stop; you don’t owe self-employment tax. Exception: If less than $400 and you had church employee income, enter -0- and continue |
| Part I | 5a | Enter your church employee income from Form W-2. See instructions for definition of church employee income |
| Part I | 5b | Multiply line 5a by 92.35% (0.9235). If less than $100, enter -0- |
| Part I | 6 | Add lines 4c and 5b |
| Part I | 7 | Maximum amount of combined wages and self-employment earnings subject to social security tax or the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2025 |
| Part I | 8a | Total social security wages and tips (total of boxes 3 and 7 on Form(s) W-2) and railroad retirement (tier 1) compensation. If $176,100 or more, skip lines 8b through 10, and go to line 11 |
| Part I | 8b | Unreported tips subject to social security tax from Form 4137, line 10 |
| Part I | 8c | Wages subject to social security tax from Form 8919, line 10 |
| Part I | 8d | Add lines 8a, 8b, and 8c |
| Part I | 9 | Subtract line 8d from line 7. If zero or less, enter -0- here and on line 10 and go to line 11 |
| Part I | 10 | Multiply the smaller of line 6 or line 9 by 12.4% (0.124) |
| Part I | 11 | Multiply line 6 by 2.9% (0.029) |
| Part I | 12 | Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 2 (Form 1040), line 4, or Form 1040-SS, Part I, line 3 |
| Part I | 13 | Deduction for one-half of self-employment tax. Multiply line 12 by 50% (0.50). Enter here and on Schedule 1 (Form 1040), line 15 |
| Part II | 14 | Maximum income for optional methods |
| Part II | 15 | Enter the smaller of: two-thirds (2/3) of gross farm income1 (not less than zero) or $7,240. Also, include this amount on line 4b above |
| Part II | 16 | Subtract line 15 from line 14 |
| Part II | 17 | Enter the smaller of: two-thirds (2/3) of gross nonfarm income4 (not less than zero) or the amount on line 16. Also, include this amount on line 4b above |
The Additional Medicare Tax is not figured on Schedule SE: the instructions say to use Form 8959 for it. The instructions and Tax Topic 554 describe the thresholds, and the calculator below does not figure it either:
“A 0.9% Additional Medicare Tax may apply to you if the total amount on line 6 of all your Schedules SE exceeds one of the following threshold amounts (based on your filing status).
Married filing jointly— $250,000
Married filing separately— $125,000
Single, Head of household, or Qualifying surviving spouse— $200,000
If you have both wages and self-employment income, the threshold amount for applying the Additional Medicare Tax on the self-employment income is reduced (but not below zero) by the amount of wages subject to Additional Medicare Tax.”
“Additional Medicare tax applies to self-employment income above a threshold. The threshold amounts are $250,000 for a married individual filing a joint return, $125,000 for a married individual filing a separate return, and $200,000 for all others.”
Worked example: $60,000 of net profit on the 2025 form (our arithmetic)
This example takes $60,000 on line 2, no farm income and no W-2 wages, and follows the 2025 line steps with each multiplication rounded half up to the cent. It is our arithmetic on the form’s steps, not an IRS example, and it is not a return.
| 1a. Net farm profit or (loss) | $0.00 |
|---|---|
| 2. Net profit or (loss) other than farming (Schedule C, line 31, and similar) | $60,000.00 |
| 3. Combine lines 1a, 1b (not used here) and 2 | $60,000.00 |
| 4a. If line 3 is more than zero, line 3 times 92.35% (0.9235); otherwise line 3 | $55,410.00 |
| 4b. Optional methods (lines 15 and 17) | not used |
| 4c. Combine lines 4a and 4b; the form says to stop if this is less than $400 | $55,410.00 |
| 5a / 5b. Church employee income and line 5a times 92.35% | not used |
| 6. Add lines 4c and 5b | $55,410.00 |
| 7. Maximum combined wages and self-employment earnings subject to social security tax for 2025 | $176,100.00 |
| 8a. Total social security wages and tips (W-2 boxes 3 and 7) | $0.00 |
| 8b. Unreported tips subject to social security tax (Form 4137, line 10) | $0.00 |
| 8c. Wages subject to social security tax (Form 8919, line 10) | $0.00 |
| 8d. Add lines 8a, 8b and 8c | $0.00 |
| 9. Line 7 minus line 8d, not less than zero | $176,100.00 |
| 10. The smaller of line 6 or line 9, times 12.4% (0.124) | $6,870.84 |
| 11. Line 6 times 2.9% (0.029) | $1,606.89 |
| 12. Self-employment tax: add lines 10 and 11 | $8,477.73 |
| 13. Deduction for one-half of self-employment tax: line 12 times 50% (0.50) | $4,238.87 |
Self-employment tax calculator (our arithmetic)
The calculator follows the same lines for tax year 2025 (final form, line 7 of $176,100) or tax year 2026 (line 7 of $184,500 from the early release draft 2026 Schedule SE; the 2026 lines are our arithmetic on that draft). W-2 wages on line 8a reduce the room under the wage base as the form does. It leaves out the optional methods (Part II), church employee income (lines 5a and 5b), Conservation Reserve Program payments (line 1b) and the Additional Medicare Tax.
Rounding: the 2025 Instructions for Form 1040 let a filer round to whole dollars, with these conditions:
“You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar.”
The calculator keeps cents and rounds each multiplication half up to the cent (the site’s convention). Filers who round to whole dollars can get results that differ from this calculator’s by a few dollars. Near the $400 test on line 4c the outcome can differ too: $433 on line 2 gives $399.88 on line 4a, so the calculator stops, while rounded to whole dollars line 4a would be $400. The $400 test uses the exact product before any rounding: $433.13 on line 2 gives 399.9956, which is below $400, so the calculator stops even though line 4a shows $400.00. The 2025 Instructions for Schedule SE (Form 1040) contain no rounding rule of their own.
Your figures
Enter losses as negative numbers. Left out: the optional methods (Part II), church employee income (lines 5a and 5b), Conservation Reserve Program payments (line 1b) and the Additional Medicare Tax.
Schedule SE arithmetic, tax year 2026
Enter your net profit or (loss) on line 2 (0 or a loss is fine) to see the Schedule SE lines. Wages are optional.
An estimate from the form’s line steps, not a return.
Optional methods
Part II has two optional methods. The instructions describe them as follows. The calculator does not use them, because they depend on gross farm and nonfarm income figures that it does not take.
“Social security coverage. The optional methods may give you credit toward your social security coverage even though you have a loss or a small amount of income from self-employment.”
“Farm optional method. You may use this method to figure your net earnings from farm self-employment if your gross farm income was $10,860 or less or your net farm profits were less than $7,840.
[…]
There is no limit on how many years you can use this method.
Under this method, report in Part II, line 15, two-thirds of your gross farm income, up to $7,240, as your net earnings.”
“Nonfarm optional method. You may be able to use this method to figure your net earnings from nonfarm self-employment if your net nonfarm profits were less than $7,840 and also less than 72.189% of your gross nonfarm income.
[…]
To use this method, you must also be regularly self-employed. You meet this requirement if your actual net earnings from self-employment were $400 or more in 2 of the 3 consecutive taxable years immediately preceding the year you use the nonfarm optional method.
[…]
You can use the nonfarm optional method to figure your earnings from self-employment for only 5 years. The 5 years don’t have to be consecutive.”
“Using the optional methods as described above may be beneficial, but they may also increase your SE tax.”
Joint returns and more than one business
“Show the name of the spouse with self-employment income on Schedule SE. If both spouses have self-employment income, each must file a separate Schedule SE.
Include the total profits or losses from all businesses on Form 1040 or 1040-SR. Enter the combined SE tax on Schedule 2 (Form 1040), line 4.”
“If you had two or more businesses subject to SE tax, your net earnings from self-employment are the combined net earnings from all of your businesses. If you had a loss in one business, it reduces the income from another. Figure the combined SE tax on one Schedule SE.”
Line 2 takes net profit from Schedule C, line 31; see Schedule C. For the form that reports payments to independent contractors see Form 1099-NEC and for payment dates see the estimated tax due dates. Self-employed retirement plan limits are on the solo 401(k) and SEP IRA pages. The IRS forms for nondeductible IRAs and HSAs have their own pages: Form 8606 and Form 8889.
Revisions and drafts
The line table and quotes on this page come from the 2025 revisions: Schedule SE (Form 1040) 2025, cat. no. 11358Z, created 5/7/25, and the 2025 Instructions for Schedule SE (Form 1040), catalog number 24334P, dated Oct 23, 2025. When we checked on November 2, 2026, IRS.gov also had an early release draft of the 2026 form (created 4/27/26) and of the 2026 instructions. Drafts are marked as not for filing:
“Caution: DRAFT—NOT FOR FILING This is an early release draft of an IRS tax form, instructions, or publication, which the IRS is providing for your information. Do not file draft forms.”
When we checked on November 2, 2026, the IRS About Schedule SE page listed a correction to the 2025 instructions, dated 20-FEB-2026. The correction said there were three updates, each concerning the words to enter on Schedule 2 (Form 1040), line 4, in three situations; none of the sentences quoted on this page was one of them.
“If you downloaded or printed the 2025 Instructions for Schedule SE (Form 1040), please be advised that there are three updates. Filers should rely on these updates for the changes described, which will be incorporated into the next revision of the instructions, as applicable.”
The opening change notes of the 2025 Instructions for Schedule SE (Form 1040) do not mention renumbered lines. The line table above is the 2025 form and is not a statement about the 2026 draft.
What this page does not cover
- The full list of who must pay SE tax, ministers and members of religious orders, and income and losses included or not included in net earnings.
- Form 1040-SS for residents of U.S. territories, community income and qualified joint ventures beyond the quotes above.
- Whether income is self-employment income, and state taxes.
Frequently asked questions
What is the self-employment tax rate for 2026?
Tax Topic 554 says the rate consists of 12.4% for Social Security and 2.9% for Medicare taxes, which is 15.3% (12.4% plus 2.9%, our arithmetic); the SSA 2027 COLA fact sheet (Internet Archive capture of 2026-10-25) lists 15.30% for the self-employed under both 2026 and 2027. The 12.4% part applies up to the wage base: $184,500 for 2026 (Publication 15 (2026) and the early release draft 2026 Instructions for Schedule SE), $176,100 for 2025.
Who must file Schedule SE?
The 2025 instructions say you must file Schedule SE if the amount on line 4c is $400 or more, or if you had church employee income of $108.28 or more. They add an exception: if you filed Form 4029 or Form 4361 and received IRS approval, you may not need to file Schedule SE. The instructions have further sections for ministers, partners, people outside the United States and others, covered in the instructions as well.
What is the 92.35% on line 4a?
Line 4a says that if line 3 is more than zero, multiply line 3 by 92.35% (0.9235); otherwise enter the amount from line 3. Tax Topic 554 words it this way: generally, the amount subject to self-employment tax is 92.35% of your net earnings from self-employment.
What is the Social Security wage base for 2025, 2026 and 2027?
The 2025 Instructions for Schedule SE give $176,100 for 2025. Publication 15 (2026) gives $184,500 for 2026, the same figure printed on line 7 of the early release draft 2026 Schedule SE. The SSA Contribution and Benefit Base page, as captured on 2026-10-21, gives $192,300 for earnings in 2027.
How do W-2 wages change the Schedule SE calculation?
Line 8a takes the social security wages and tips from Form(s) W-2 (boxes 3 and 7); the form says that if line 8a is equal to or more than the line 7 wage base, skip lines 8b through 10 and go to line 11. Otherwise line 8d adds lines 8a, 8b and 8c, line 9 is line 7 minus line 8d (not less than zero), and line 10 is the smaller of line 6 or line 9 times 12.4%. Line 11 is line 6 times 2.9% either way.
What is the deduction for one-half of self-employment tax?
Line 13 reads: Deduction for one-half of self-employment tax. Multiply line 12 by 50% (0.50). Enter here and on Schedule 1 (Form 1040), line 15. Tax Topic 554 says one-half of the self-employment tax can be deducted when figuring adjusted gross income on Form 1040, 1040-SR or 1040-NR.
What are the optional methods on Part II?
The instructions describe a farm optional method (gross farm income of $10,860 or less or net farm profits of less than $7,840) and a nonfarm optional method (net nonfarm profits of less than $7,840 and also less than 72.189% of gross nonfarm income, with other conditions), each reported on lines 15 and 17 and carried to line 4b. They say the methods may give credit toward social security coverage but may also increase SE tax. FedRateCalc’s calculator leaves them out.
Does Schedule SE include the Additional Medicare Tax?
No line of Part I figures it. The instructions say a 0.9% Additional Medicare Tax may apply if the total on line 6 of all your Schedules SE exceeds $250,000 (married filing jointly), $125,000 (married filing separately) or $200,000 (single, head of household, or qualifying surviving spouse), reduced by wages subject to the tax, and that Form 8959 is used to figure it. FedRateCalc’s calculator leaves it out.
Related IRS form pages and calculators
- Form 8606: Nondeductible IRAs and Roth Conversions
- Form 8889: HSA Contributions and Distributions, Part by Part
- Social Security tax limit 2027
- Schedule C: profit or loss from business
- Estimated tax due dates
- Form 1099-NEC: who gets one, threshold and due date
- Solo 401(k) calculator
- SEP IRA contribution limits
Sources (checked November 2, 2026): IRS: Schedule SE (Form 1040) 2025, PDF · IRS: 2025 Instructions for Schedule SE (Form 1040), PDF · IRS: About Schedule SE (Form 1040) · IRS: Correction to the 2025 Instructions for Schedule SE (Form 1040) · IRS: Schedule SE (Form 1040) 2026, early release draft, PDF · IRS: 2026 Instructions for Schedule SE (Form 1040), early release draft, PDF · IRS: 2025 Instructions for Form 1040 (rounding to whole dollars) · IRS: Tax Topic 554, Self-employment tax · IRS: Publication 15 (2026), (Circular E), Employer’s Tax Guide · SSA: Contribution and Benefit Base (Internet Archive capture of the ssa.gov page, 2026-10-21) · SSA: 2027 COLA fact sheet (Internet Archive capture of the ssa.gov page, 2026-10-25)