About the Self-Employment Tax Calculator
This self-employment tax calculator shows what you owe as a freelancer, independent contractor or sole proprietor for tax year 2026. Employees split Social Security and Medicare with their employer; when you work for yourself you pay both halves — 15.3% on 92.35% of your net profit — through Schedule SE.
Enter your gross 1099 or business income and your deductible business expenses. The calculator applies the $184,500 Social Security wage base (reduced by any W-2 wages you also earned), the 2.9% Medicare tax with no cap, and the 0.9% Additional Medicare Tax above $200,000 ($250,000 for joint filers). It then estimates federal income tax using the 2026 brackets and standard deduction (IRS Rev. Proc. 2025-32), the deduction for half of SE tax and the optional 20% qualified business income (QBI) deduction.
Use it to price your work, decide how much of each invoice to set aside, or check a Schedule SE figure. Assumptions: the QBI deduction is the full 20% below $201,750 of taxable income ($403,500 joint) and, above that, phases out over the next $75,000 ($150,000 joint) as it would for a sole proprietor with no employees or business property; itemized deductions, SE health insurance, retirement contributions, credits and state income tax are not included.
With the default inputs, the self-employment tax is $12,010.12. Change any value above to recalculate instantly.
How to use the self-employment tax calculator
- 1Choose your filing status.
- 2Enter your gross self-employment income and deductible business expenses.
- 3Add any W-2 wages so the Social Security cap is applied correctly.
- 4Read your SE tax, estimated income tax and the share of profit to set aside.
- 5Divide the total into quarterly estimated payments with the quarterly tax calculator.
Formula and method
Net earnings from self-employment are 92.35% of net profit — this mirrors the employer-half deduction an employee effectively receives. Social Security (12.4%) applies up to the 2026 wage base of $184,500, minus any W-2 wages that already paid Social Security tax. Medicare (2.9%) has no cap, and a further 0.9% applies to earnings above $200,000 single, $250,000 joint or $125,000 married filing separately.
Half of the Social Security and regular Medicare portion is deductible when computing adjusted gross income. Income tax is then estimated using the 2026 standard deduction, the optional 20% qualified business income deduction (limited to 20% of taxable income and phased out above the 2026 thresholds of $201,750 / $403,500 joint, assuming no W-2 payroll or business property) and the 2026 brackets. The income tax shown is the extra tax caused by your self-employment profit on top of any wages.
- P
- Net profit (gross income − business expenses)
- W
- Social Security wage base ($184,500 in 2026)
- 0.9235
- 1 − 7.65%, the employer-equivalent adjustment
Worked examples
$100,000 of 1099 income with $15,000 of expenses
Net profit is $85,000, and 92.35% of that is $78,498. SE tax at 15.3% is $12,010, half of which ($6,005) is deductible. After the standard deduction and QBI deduction, income tax is about $5,790, for a total of roughly $17,800 — about 20.9% of profit.
Side hustle on top of a $190,000 salary
Because the $190,000 salary already exceeds the $184,500 Social Security wage base, the $35,000 side profit owes no Social Security tax — only 2.9% Medicare ($937) plus 0.9% Additional Medicare on earnings above $200,000 combined ($201), for SE tax of about $1,138. Taxable income before QBI is about $208,431, $6,681 over the $201,750 threshold, so the QBI deduction is cut by about 8.9% to $6,291, and the side income adds about $6,807 of income tax, mostly at 24%.
Married contractor earning $300,000 net, no QBI
Net earnings are $277,050. Social Security stops at the $184,500 wage base ($22,878); Medicare is 2.9% of the full amount ($8,034) and Additional Medicare adds 0.9% above $250,000 ($243), giving SE tax of $31,156.
Frequently asked questions
What is the self-employment tax rate for 2026?+
The rate is 15.3%: 12.4% Social Security on net earnings up to $184,500 and 2.9% Medicare on all net earnings. An extra 0.9% Additional Medicare Tax applies above $200,000 ($250,000 married filing jointly).
Why is SE tax calculated on 92.35% of profit?+
Employees do not pay tax on the employer half of FICA. Multiplying profit by 92.35% (100% − 7.65%) gives self-employed people an equivalent adjustment before the 15.3% rate is applied.
Do I pay self-employment tax if I earn less than $400?+
No. If your net earnings from self-employment are under $400 for the year you do not owe SE tax, although the income is still subject to regular income tax.
Is self-employment tax deductible?+
Half of it is. The employer-equivalent half of your Social Security and Medicare tax is an above-the-line deduction on Schedule 1, which lowers your adjusted gross income but not the SE tax itself.
How much should I set aside for taxes as a freelancer?+
Many freelancers set aside 25%–30% of net profit for federal taxes, plus their state rate. This calculator’s set-aside percentage gives a figure tailored to your income and filing status.
Can an S corporation reduce self-employment tax?+
S corporation owners pay payroll tax only on a reasonable salary, not on distributions, which can cut the total. It adds payroll and filing costs, so it usually pays off only at higher profit levels.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.