Self-Employment Tax Calculator (2026)

Calculate your self-employment tax (15.3%) — the independent contractor equivalent of FICA.

Annual Net Self-Employment Income

After COGS but before SE tax

Business Deductions

Mileage, home office, supplies

✓Your Results

Net Self-Employment Income

$0.00

SE Tax Base (92.35%)

$0.00

92.35% of net income

Social Security (12.4%)

$0.00

Cap: $184,500

Medicare (2.9%)

$0.00

No income cap

Total SE Tax (15.3%)

$0.00

Quarterly Payment

$0.00

Due 4x/year

Effective Tax Rate

0.0%

Deductible Half

$0.00

AGI deduction

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Last Updated: June 2026Written by: Sarah Chen, CPAReviewed by: Verified against IRS Schedule SE instructionsSources:IRS Schedule SE·IRS 2026 Tax Adjustments

✓

Quick Answer: Self-employment tax in 2026 is 15.3% — 12.4% Social Security (on income up to $184,500) plus 2.9% Medicare (no cap). It is calculated on 92.35% of your net self-employment income. On $65,000 net income, you owe approximately $9,177 in SE tax, or $2,294 per quarter.

How to Use the Self Employment Tax Calculator

The Self Employment (SE) Tax is the independent contractor equivalent of FICA taxes. As a self-employed individual, you pay both the employee portion (7.65%) and the employer portion (7.65%), totaling 15.3%.

Enter your annual net self-employment income (total freelance/business income after COGS but before deducting business expenses). Then enter your total business deductions — mileage, home office, supplies, software, marketing. The calculator applies the 92.35% SE tax base rule and the Social Security wage cap automatically.

Self Employment Tax Formula (2026)

The IRS calculates SE tax on 92.35% of your net earnings — not 100%. This adjustment accounts for the employer-equivalent deduction:

SE Tax Base = Net Income × 0.9235
Social Security = min(SE Tax Base, $184,500) × 12.4%
Medicare = SE Tax Base × 2.9%
Total SE Tax = Social Security + Medicare
Deductible Half = Total SE Tax × 0.5 (reduces your AGI)

Example: $65,000 net income, $5,000 deductions → Taxable = $60,000 → SE Base = $55,410 → SS = $6,871 → Medicare = $1,607 → Total SE Tax = $8,478 → Quarterly = $2,120.

SE Tax Breakdown by Component

Calculated on 92.35% of net SE income. $184,500 Social Security wage cap for 2026.
Component	Rate	Wage Cap	On $50k Income	On $200k Income
Social Security (12.4%)	12.4%	$184,500 cap	$5,722	$20,129
Medicare (2.9%)	2.9%	No cap	$1,339	$5,355
Total SE Tax (15.3%)	15.3%	—	$7,061	$25,484
Quarterly Payment	—	—	$1,765	$6,371
Deductible Half	—	—	$3,531	$12,742

SE Tax at Different Income Levels

All figures assume no business deductions. Add deductions to reduce your SE tax base.
Metric	$40,000	$65,000	$100,000	$150,000
Gross Income	$40,000	$65,000	$100,000	$150,000
SE Tax Base (92.35%)	$36,940	$59,978	$92,350	$138,525
Total SE Tax	$5,652	$9,177	$14,130	$21,194
Quarterly Payment	$1,413	$2,294	$3,533	$5,299
Deductible Half	$2,826	$4,589	$7,065	$10,597

Real-Life Scenarios with Step-by-Step Math

Scenario 1: Full-Time Freelancer (Moderate Income)

Profile: Alex is a freelance graphic designer earning $85,000/year. After $12,000 in business deductions (software, home office, internet, marketing), his net SE income is $73,000.

Calculation:

SE Tax Base = $73,000 × 0.9235 = $67,416
Social Security = $67,416 × 12.4% = $8,360 (under $184,500 cap)
Medicare = $67,416 × 2.9% = $1,955
Total SE Tax = $8,360 + $1,955 = $10,315
Quarterly Payment = $10,315 ÷ 4 = $2,579
Deductible Half = $10,315 × 0.5 = $5,158 (reduces AGI)

Key insight: Alex pays $10,315 in SE tax plus roughly $9,800 in federal income tax (12% bracket), for a total tax burden of ~$20,115. His effective total tax rate is ~27.6% of net income. Setting aside 30% of every client payment would cover all taxes comfortably.

Scenario 2: High Earner Exceeding SS Cap

Profile: Priya runs a consulting LLC earning $250,000/year with $30,000 in expenses. Net SE income = $220,000.

Calculation:

SE Tax Base = $220,000 × 0.9235 = $203,170
Social Security = $184,500 (cap) × 12.4% = $22,878 (capped at SS wage base)
Medicare = $203,170 × 2.9% = $5,892 (no cap)
Additional Medicare (0.9%) on income over $200,000 = $3,170 × 0.9% = $29
Total SE Tax = $22,878 + $5,892 + $29 = $28,799
Quarterly Payment = $7,200

Key insight: Because Priya exceeds the Social Security cap ($184,500), her effective SE tax rate drops from 15.3% to ~12.6%. She should strongly consider S-Corp election — paying herself a reasonable salary of ~$150,000 (subject to SE tax) and taking the remaining $70,000 as distributions (not subject to SE tax). This could save her $8,000+ annually in SE tax.

Scenario 3: Part-Time Side Hustle

Profile: Marcus has a full-time W-2 job earning $60,000 and a side business on Etsy earning $15,000 with $3,000 in expenses. Net SE income = $12,000.

Calculation:

SE Tax Base = $12,000 × 0.9235 = $11,082
Social Security = $11,082 × 12.4% = $1,374
Medicare = $11,082 × 2.9% = $321
Total SE Tax = $1,695
Quarterly Payment = $424

Key insight: Even with a W-2 job, Marcus must file Schedule SE if his net SE income exceeds $400. His SE tax of $1,695 is on top of the FICA taxes already withheld from his W-2 job. He should make quarterly payments of ~$424 to avoid underpayment penalties.

Common Self-Employment Tax Mistakes to Avoid

Forgetting the 92.35% rule. SE tax is NOT calculated on 100% of your net income — it is calculated on 92.35%. Many freelancers overpay by calculating 15.3% on their full net income.
Not tracking deductions throughout the year. Every dollar of legitimate business expense reduces your SE tax base. Missing deductions like mileage, home office, software, and professional development means paying more SE tax than necessary.
Skipping quarterly payments. If you owe $1,000+ in taxes, the IRS requires quarterly payments. Missing them triggers underpayment penalties — currently ~7% per year on the underpaid amount.
Not deducting the employer-equivalent half. You can deduct 50% of your SE tax from your AGI on Schedule 1. Many freelancers forget this deduction, which effectively reduces their federal income tax — but not their SE tax itself.
Ignoring S-Corp election for high earners. Once your net income exceeds ~$50,000, an S-Corp election can save thousands in SE tax by splitting income between salary and distributions.

2026 SE Tax Key Numbers

SE tax rate: 15.3% (12.4% SS + 2.9% Medicare)
SE tax base: 92.35% of net earnings
Social Security wage cap: $184,500 (2026)
Medicare surtax: Additional 0.9% on income over $200,000 ($250,000 MFJ)
Minimum to owe SE tax: $400 net self-employment income
Quarterly due dates: April 15, June 16, September 15, January 15 (2027)
Form to file: Schedule SE (attached to Form 1040)

How to Reduce Your Self-Employment Tax

Maximize business deductions. Every dollar of legitimate business expense reduces your SE tax base. Common deductions: mileage ($0.725/mile), home office, phone, software, professional development.
Elect S-Corp status. Once your net income exceeds ~$40,000–$50,000, an S-Corp election can reduce SE tax by paying yourself a reasonable salary and taking the rest as distributions (not subject to SE tax). Consult a CPA before doing this.
Contribute to a Solo 401k or SEP-IRA. Retirement contributions reduce your taxable income, which reduces your SE tax base. A Solo 401k allows up to $70,000 in contributions for 2026.
Deduct the employer-equivalent half. You can deduct 50% of your SE tax from your gross income on Schedule 1. This calculator shows your deductible amount.

Frequently Asked Questions

Who needs to pay self-employment tax?

Anyone with net self-employment earnings of $400 or more must file Schedule SE and pay SE tax. This includes freelancers, independent contractors, gig workers (Uber, DoorDash, Fiverr), sole proprietors, and single-member LLCs. Even if you have a W-2 job, you owe SE tax on any side business income over $400.

What is the self-employment tax rate in 2026?

The SE tax rate is 15.3% — 12.4% for Social Security (on income up to $184,500) and 2.9% for Medicare (no cap). It is calculated on 92.35% of your net self-employment income, not 100%. High earners over $200,000 also pay an additional 0.9% Medicare surtax.

Can I deduct half of my self-employment tax?

Yes. The IRS allows you to deduct the employer-equivalent half (50%) of your SE tax when calculating your adjusted gross income (AGI). This deduction is taken on Schedule 1 of Form 1040 and reduces your federal income tax — but not your SE tax itself.

What is the Social Security wage cap for 2026?

The Social Security wage base is $184,500 for 2026. Only the first $184,500 of your SE tax base is subject to the 12.4% Social Security portion. The 2.9% Medicare portion has no wage cap. If you earn over $200,000, you also owe an additional 0.9% Medicare surtax.

When are quarterly estimated tax payments due?

Quarterly estimated tax payments are due: April 15 (Q1), June 16 (Q2), September 15 (Q3), and January 15, 2027 (Q4). If you expect to owe $1,000 or more in taxes for the year, you must make quarterly payments to avoid underpayment penalties. Use IRS Form 1040-ES to calculate and pay.

Does an LLC pay self-employment tax?

A single-member LLC (SMLLC) is taxed as a sole proprietor by default — you pay SE tax on all net profits. A multi-member LLC is taxed as a partnership — members pay SE tax on their distributive share. An LLC that elects S-Corp status can reduce SE tax by splitting income between salary (subject to SE tax) and distributions (not subject to SE tax).

Disclaimer: This tool is for estimation purposes only. We are not certified financial advisors, CPAs, or legal experts. Please consult a professional before making financial decisions.

About This Calculator

Calculate your self-employment tax instantly for 2026. Covers SE tax, deductions & quarterly payments. Free tool for freelancers, 1099 contractors, and gig workers. Use our free Self-Employment Tax Calculator 2026 to run accurate estimates instantly — no sign-up, no downloads, and no personal data stored.

Self-employment tax is the Social Security and Medicare tax that freelancers, independent contractors, and sole proprietors pay on their net earnings. Unlike W-2 employees who split these taxes 50/50 with their employer, self-employed individuals pay both halves — the employee portion and the employer portion — for a combined rate of 15.3%.

The 15.3% breaks down into two parts: 12.4% for Social Security (applied to the first $184,500 of net self-employment income in 2026) and 2.9% for Medicare (applied to all net self-employment income with no cap). If your income exceeds $200,000 as a single filer or $250,000 filing jointly, you also owe an additional 0.9% Medicare surtax on earnings above those thresholds.

Before calculating SE tax, the IRS lets you reduce your net self-employment income by 7.65% (multiply by 92.35%). This adjustment mirrors the fact that employers don't pay FICA on their own matching contribution. After that, you can deduct 50% of the SE tax you paid as an above-the-line deduction on your Form 1040, which reduces your adjusted gross income but not your SE tax itself.

You must pay self-employment tax if your net earnings from self-employment are $400 or more per year. This applies to freelance income, 1099-NEC payments, gig economy earnings, sole proprietor business profits, and partnership income. The $400 threshold is much lower than the $600 threshold for receiving a 1099 form — you owe SE tax even if no 1099 is issued.

Formula

Net SE Income = Gross Income − Business Expenses
Taxable SE Base = Net SE Income × 92.35%
SE Tax = Taxable SE Base × 15.3%
  → Social Security = Taxable SE Base × 12.4% (up to $184,500)
  → Medicare = Taxable SE Base × 2.9% (no cap)
  → Additional Medicare = 0.9% on income over $200K/$250K
Deduction = SE Tax × 50% (reduces income tax, not SE tax)

2026 Self-Employment Tax Rates

Component	Rate	Wage Base / Cap	Notes
Social Security	12.4%	$184,500	Only applies up to the wage base
Medicare	2.9%	No cap	Applies to all net SE income
Additional Medicare	0.9%	Over $200K (S) / $250K (MFJ)	Only on income above threshold
Total SE Tax	15.3%	—	Before the 92.35% adjustment
Deductible Portion	50%	—	Above-the-line deduction on 1040

How to Use the Self-Employment Tax Calculator 2026

Enter your total self-employment gross income — this includes all 1099-NEC, 1099-K, and cash payments received for services or products.
Enter your business deductions — home office, supplies, mileage ($0.725/mile in 2026), phone, internet, health insurance premiums, and retirement contributions.
Select your filing status (Single, MFJ, MFS, HoH) to calculate your federal income tax brackets alongside SE tax.
Review the breakdown: the calculator shows your SE tax, the 50% deduction, your effective tax rate, and quarterly estimated payment amounts with due dates.

All calculations run locally in your browser for privacy and speed. Results are estimates for planning purposes — consult a qualified tax professional, financial advisor, or accountant for advice specific to your situation.

Frequently Asked Questions

What is the self-employment tax rate in 2026?

The self-employment tax rate is 15.3% of net self-employment earnings, consisting of 12.4% for Social Security (on the first $184,500) and 2.9% for Medicare (on all earnings). Before applying this rate, you multiply your net income by 92.35% to get the taxable base.

Can I deduct self-employment tax on my return?

Yes. You can deduct 50% of your self-employment tax as an above-the-line deduction on Form 1040. This reduces your adjusted gross income and your income tax, but it does not reduce the SE tax itself. For example, if you owe $14,000 in SE tax, you can deduct $7,000 from your gross income.

Do I owe SE tax if I earn under $600?

Yes, if your net self-employment earnings exceed $400. The $600 threshold only determines whether a client must issue you a 1099-NEC form — it has no bearing on your tax obligation. You owe SE tax on any net self-employment income of $400 or more.

How do I make quarterly estimated tax payments?

File Form 1040-ES and pay quarterly if you expect to owe $1,000 or more in combined income and SE tax. The 2026 due dates are April 15, June 16, September 15, and January 15 (2027). You can pay online at IRS.gov/payments, by phone, or by mailing a check with a 1040-ES voucher.

What is the 0.9% Additional Medicare Tax?

Single filers earning over $200,000 and married-filing-jointly filers over $250,000 owe an extra 0.9% Medicare tax on self-employment income above those thresholds. This surtax is in addition to the standard 2.9% Medicare rate and is not shared with an employer.

Does SE tax apply to LLC and S-Corp owners?

Single-member LLCs taxed as sole proprietors pay SE tax on all net business income. S-Corp owners pay SE tax only on their reasonable salary, not on distributions. Converting from sole proprietor to S-Corp can reduce SE tax for high earners, but requires paying yourself a reasonable wage.

What expenses reduce my self-employment tax?

Any legitimate business expense that reduces net profit also reduces SE tax. Common deductions include the home office deduction, vehicle mileage ($0.725/mile in 2026), health insurance premiums, retirement contributions (SEP-IRA up to $72,000, Solo 401k up to $72,000), business supplies, software, and professional development.

Related Guide

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Last updated: June 2026 · TheMetricApp provides free financial calculators for US and UK taxpayers, freelancers, gig workers, and small business owners.