US Self-Employment Tax (rough)
Approximate Schedule SE-style Social Security + Medicare on net profit. Strongly approximate — verify with IRS publications or a tax professional.
Disclaimer: This is not tax advice and TakeHome is not a CPA or tax preparer. Figures are approximate educational estimates only. Income tax, state tax, Additional Medicare Tax, deductions, and credits are omitted. Confirm on IRS.gov and consult a qualified advisor.
Formula
netEarnings = profit × 0.9235
SS = min(netEarnings, max(0, wageBase − otherWages)) × 12.4%
Medicare = netEarnings × 2.9%
SE tax = SS + Medicare
FAQ
Is this tax advice?
No. Not tax advice, not a CPA, not a substitute for IRS forms or a qualified advisor. Rough Schedule SE-style estimate only.
What does the model include?
Applies 92.35% to net profit, then 12.4% Social Security (up to the 2026 wage base $184,500, reduced by other SS wages) + 2.9% Medicare. Ignores income tax, state tax, Additional Medicare Tax, quarterly estimates, and credits.
Where do rates come from?
IRS self-employment tax overview and 2026 Schedule SE / SSA wage base figures ($184,500). Verify on IRS.gov / SSA.gov.
Does this include federal income tax or state tax?
No. Only the modeled Social Security and Medicare SE pieces. Income tax, state tax, and Additional Medicare Tax are out of scope.
Are quarterly estimated payments included?
No. This is a rough annual-style estimate — talk to a qualified tax professional for filing and estimates.