Figuring Self Employment Tax

Using the regular method to figure out self employment earnings

Remember that you must use the regular method unless you are eligible to use one or both of the optional methods.

Using the regular method, you multiply your net self employment income by 92.35% (0.9235) to get the net self employment earnings.

Calculating self employment tax

To arrive at your self employment tax, you multiply the net earnings you figured by the tax rate. The self employment tax rate is 15.3%. It is the same for net earnings figured under each method.