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Self-Employment Tax Calculator

See how much self-employment tax you'll owe for 2026 as a freelancer or business owner, with the Social Security and Medicare parts, your deduction and quarterly amounts.

Level: Grade 7

  • Common Core standard 7.RP.A.3Use proportional relationships to solve multistep ratio and percent problems. Examples: simple interest, tax, markups and markdowns, gratuities and commissions, fees, percent increase and decrease, percent error.
Printable worksheet

Self-Employment Tax Calculator

Know the answer you need? Pick an input to work backward.

Inputs

Gross receipts from freelancing, contract work or your business (1099 income).

Deductible business costs from Schedule C. Leave blank if your income figure is already net profit.

Sets the Additional Medicare Tax threshold.

Wages already taxed for Social Security use up part of the $184,500 wage base.

Result

2026 self-employment tax

$8,477.73

On $60,000.00 of net profit, estimated 2026 self-employment tax is $8,477.73 ($2,119.43 a quarter), and half of it, $4,238.87, is deductible. This is an estimate, not tax advice.

Net profit
$60,000.00
Net earnings subject to SE tax (92.35%)
$55,410.00
Social Security part (12.4%)
$6,870.84
Medicare part (2.9%)
$1,606.89
Deduction for half of SE tax
$4,238.87
Per quarterly payment (SE tax only)
$2,119.43
SE tax as a share of net profit
14.13%
Additional Medicare tax (Form 8959)
$0.00Owed on top of SE tax.
Self-employment tax by part
  • Social Security$6,870.8481%
  • Medicare$1,606.8919%

See the step-by-step solution ↓

Step-by-step solution

  1. Subtract your business expenses to get your net profit

    $75,000.00−$15,000.00=$60,000.00

  2. Take 92.35% of your profit, leaving out the employer's half of the tax as employees do

    $60,000.00×92.35%=$55,410.00

  3. Social Security part: 12.4% of your net earnings, up to the yearly limit

    $55,410.00×12.4%=$6,870.84

  4. Medicare part: 2.9% of all your net earnings, with no limit

    $55,410.00×2.9%=$1,606.89

  5. Add the two parts to get your 2026 self-employment tax

    $6,870.84+$1,606.89=$8,477.73

  6. You can deduct half of it, which lowers your income tax

    $8,477.732=$4,238.87

  7. Split it into four, one share for each quarterly estimated payment

    $8,477.734=$2,119.43

Test yourself

20 quick questions built from this calculator's formula: work out results, predict what happens when an input changes, and work backward from an answer. Every answer comes with the working.

Please note: Results are estimates for planning and comparison. Lenders, banks, and tax authorities may round differently or include fees not modeled here, so confirm figures with your provider before deciding.

What this calculator does

Find out how much self-employment tax you'll owe for 2026 when you work for yourself. Employees split Social Security and Medicare tax with their employer, and each side pays 7.65% of wages. When you're your own boss, you pay both halves yourself. That's self-employment (SE) tax: 15.3% in total, made up of 12.4% for Social Security and 2.9% for Medicare.

The calculator works from your self-employment income and business expenses. It follows the regular method on Schedule SE, the IRS form for this tax. The tax applies to 92.35% of your net profit, meaning income minus expenses. The Social Security part stops at the 2026 wage base of $184,500, the most income that part is charged on. Any W-2 wages from a job come off that limit first. Half of the tax is deductible. You'll also see the Additional Medicare Tax on high earnings, a quarterly amount for estimated payments, and how much of your profit goes to SE tax. The result is an estimate, not tax advice.

Where it's used

Why this math matters outside the classroom:

  • Freelance income. Net profit of $50,000 is first multiplied by 92.35%, giving $46,175, and the 15.3% rate on that is about $7,065.
  • Two parts of the tax. The 15.3% combines 12.4% for Social Security and 2.9% for Medicare.
  • Side businesses. Workers with both a W-2 job and side income see how wages already taxed count toward the Social Security wage base.
  • Quarterly estimates. Self-employed people estimate this tax for the year so they can plan their quarterly payments.

Grade level and standards: Grade 7; Common Core State Standards for Mathematics 7.RP.A.3. © Copyright 2010. National Governors Association Center for Best Practices and Council of Chief State School Officers. All rights reserved.

How to use it

  1. Enter your total self-employment income for 2026 before expenses, such as 1099 payments and business sales.
  2. Enter your business expenses. Leave the box blank if the income you entered is already your net profit.
  3. Choose your filing status. If you also have a job, enter your W-2 wages.
  4. Read your self-employment tax, its Social Security and Medicare parts, the half you can deduct and the amount per quarter.

What the inputs mean

Self-employment income for the year
All your self-employment income before expenses. That includes freelance and contract payments, sales and other money your business takes in. If you have more than one business, add their incomes together.
Business expenses (optional)
The usual, needed business costs you deduct on Schedule C, such as supplies, software, business mileage and a home-office deduction. The calculator subtracts them to get your net profit.
Filing status (2026)
This is only used for the Additional Medicare Tax threshold. That's $200,000 for single and head-of-household filers, and $250,000 for married couples filing jointly. It's $125,000 for married people filing separately.
W-2 wages from a job (optional)
Social Security tax was already taken out of wages from a job. So those wages use up part of the $184,500 wage base. They also count toward the Additional Medicare Tax threshold.

Formula and method

net profit = income − expenses
net earnings = net profit × 92.35%   (no SE tax if under $400)
Social Security part = 12.4% × min(net earnings, $184,500 − W-2 wages)
Medicare part = 2.9% × net earnings
self-employment tax = Social Security part + Medicare part
deductible half = SE tax ÷ 2;  quarterly = SE tax ÷ 4

Net profit is your income minus business expenses. Net earnings are the part of that profit the tax is charged on. "min(a, b)" means "whichever is smaller", so Social Security tax only applies up to what's left of the $184,500 wage base. W-2 wages are pay from a regular job.

The 92.35% equals 100% minus 7.65%, the employer's half of FICA (the payroll tax for Social Security and Medicare). It treats you the same way as an employee. An employee's wages never include the employer's share of this tax. If your net earnings come to less than $400, no SE tax is due.

Social Security tax stops once your wages and net earnings together reach the wage base. Medicare keeps going on every dollar. Above the Additional Medicare threshold for your filing status, another 0.9% applies. That extra tax goes on Form 8959, not Schedule SE. So it's shown separately and isn't part of the SE tax total.

Worked example

A single freelancer earns $75,000 in 2026 and has $15,000 of business expenses, with no other job.

  1. Net profit: $75,000 − $15,000 = $60,000.
  2. Net earnings: $60,000 × 92.35% = $55,410.
  3. Social Security part: $55,410 × 12.4% = $6,870.84.
  4. Medicare part: $55,410 × 2.9% = $1,606.89.
  5. Self-employment tax: $6,870.84 + $1,606.89 = $8,477.73. Half of it, $4,238.87, is deductible, and a quarter is $2,119.43.

Result: Estimated 2026 self-employment tax is $8,477.73, about 14.13% of net profit.

Understanding the result

Here's a handy rule of thumb. Below the wage base, SE tax is about 14.13% of net profit (92.35% × 15.3%). Above it, only the 2.9% Medicare part still applies, which works out to about 2.68% of each extra dollar of profit (92.35% × 2.9%). Add 0.9% once you pass the Additional Medicare threshold.

SE tax comes on top of regular income tax. Your net profit is also taxed at your income tax rates, after you take off the deductible half of SE tax and your standard deduction. So set aside more than the SE tax alone. The quarterly amount here covers SE tax only.

Each dollar of deductible business expense cuts your SE tax by about 14 cents. It also cuts your income tax by your bracket rate. So keeping careful track of expenses pays off twice.

Assumptions and limitations

  • Tax year 2026: 12.4% Social Security on net earnings up to the $184,500 wage base, and 2.9% Medicare. It also uses the 92.35% factor and the $400 minimum.
  • It uses the regular Schedule SE method, not the optional farm and nonfarm methods.
  • Social Security was taken out of your W-2 wages at the normal rate.
  • This is an estimate, not tax advice. Check it against the Schedule SE instructions or with a tax professional.
  • It doesn't include income tax, state tax or the qualified business income deduction. Use the income tax calculator for income tax.
  • It doesn't cover church employee income, the farm optional methods, partnership rules or S-corporation salaries. The special rules for some ministers and nonresidents aren't included either.

Frequently asked questions

What is the self-employment tax rate for 2026?

It's 15.3% of your net earnings from self-employment. That's 12.4% for Social Security on earnings up to $184,500, plus 2.9% for Medicare on all earnings. Net earnings are 92.35% of your net profit. So below the wage base, the tax works out to roughly 14.13% of profit.

Why is self-employment tax figured on 92.35% of profit?

An employer's half of payroll tax is a business expense, and it never shows up in an employee's wages. So before the tax is applied, your profit is cut by 7.65%, the employer's half. That gives self-employed people the same treatment as employees.

Do I owe self-employment tax if I also have a job?

Yes, on your self-employment earnings, as long as they reach $400. Your W-2 wages count first toward the Social Security wage base. So if your wages plus self-employment earnings pass $184,500, the Social Security part is limited. Enter your wages to see how this works for you.

Is half of self-employment tax really deductible?

Yes. You deduct half of your SE tax when you work out your adjusted gross income (your income after certain deductions), which lowers your income tax. It doesn't lower the SE tax itself. You get it whether or not you itemize.

Do I need to make quarterly estimated payments?

Usually yes, if you expect to owe $1,000 or more for the year after withholding and credits. These payments cover both SE tax and income tax. They're usually due in April, June, September and January. The quarterly amount here covers only SE tax, so add the income tax you expect to owe.

How this calculator is checked

Method: Schedule SE regular method: 92.35% of net profit, 12.4% Social Security up to the 2026 $184,500 wage base less W-2 wages, 2.9% Medicare; $400 minimum; Additional Medicare 0.9% (Form 8959). Rates from IRS Topics 554, 560 and 751 (figures in src/lib/finance/tax-2026.ts). The calculation is covered by automated tests with known reference values and edge cases. Last updated 2026-10-18. Found a problem? Tell us.

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