Self-employment tax calculator 2026 and 2025

This self employment tax calculator works out the Social Security and Medicare tax you pay on net profit from a business, freelancing or 1099 work in the US. Enter your net profit (and any W-2 wages from a job), and see the 15.3% SE tax, the capped Social Security part, the Additional Medicare Tax and the half you can deduct.

Example: Tax year: 2026 · Net profit from self-employment 60,000 $ · Filing status (for the Additional Medicare Tax): Single → Self-employment tax (Schedule SE): US$8,477.73. Source: IRS – Self-employment tax (Social Security and Medicare taxes): 15.3% rate, $400 threshold, deduction of the employer-equivalent portion. Updated: .

$
income minus business expenses (Schedule C line 31, or your share of partnership earnings)
$
wages that already paid Social Security tax use up part of the wage base
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Result

Self-employment tax (Schedule SE)
US$8,477.73
Deductible half of SE tax
US$4,238.87
Additional Medicare Tax (Form 8959)
US$0.00
Working
  • Net earnings subject to SE tax: US$60,000.00 × 92.35% = US$55,410.00
  • Social Security: US$55,410.00 × 12.4% = US$6,870.84
  • Medicare: US$55,410.00 × 2.9% = US$1,606.89
  • SE tax = US$6,870.84 + US$1,606.89 = US$8,477.73; deductible half = US$4,238.87
SE tax comes on top of federal income tax and is usually paid through quarterly estimated payments. The deductible half lowers your adjusted gross income, not the SE tax itself. Church employee income and optional methods are not covered.

How it is calculated

Self-employment tax is 15.3% of 92.35% of your net profit: 12.4% for Social Security (up to the wage base of $184,500 in 2026, $176,100 in 2025) and 2.9% for Medicare with no limit. On a net profit of $60,000 that is $55,410 × 15.3% = $8,477.73. Half of it, about $4,238.87, is deducted when you work out your adjusted gross income.

How to use the self employment tax calculator

  1. Choose the tax year.
  2. Enter your net profit – business income minus deductible business expenses.
  3. If you also had a job, enter your W-2 wages. They count toward the Social Security wage base first.
  4. Choose your filing status; it sets the threshold for the 0.9% Additional Medicare Tax.

How SE tax is calculated

StepRule
Net earnings92.35% of net profit; under $400 no SE tax
Social Security12.4% up to the wage base minus W-2 wages ($184,500 in 2026, $176,100 in 2025)
Medicare2.9% of all net earnings
Additional Medicare Tax0.9% above $200,000 (single, head of household), $250,000 (married filing jointly) or $125,000 (married filing separately), threshold reduced by Medicare wages
Deductionone-half of SE tax (not of the Additional Medicare Tax)

Why 92.35%? An employee’s pay is not reduced by the employer’s half of payroll tax. Multiplying by 92.35% (100% minus 7.65%) treats the self-employed the same way.

Example: $200,000 net profit in 2026, single, no wages

Net earnings: $184,700. Social Security on the wage base only: $184,500 × 12.4% = $22,878. Medicare: $184,700 × 2.9% = $5,356.30. SE tax: $28,234.30. Net earnings are below $200,000, so no Additional Medicare Tax.

SE tax and income tax are separate

SE tax replaces the Social Security and Medicare (FICA) taxes an employer would withhold. Federal income tax is charged on top, on your taxable income after the deductible half of SE tax and your other deductions – estimate it with the federal income tax calculator. Driving for work? The mileage reimbursement calculator helps with the vehicle expense that lowers your profit.

Frequently asked questions

What is the self-employment tax rate for 2026?

15.3%: 12.4% Social Security on net earnings up to $184,500 and 2.9% Medicare on all net earnings, applied to 92.35% of your net profit.

How much self-employment tax on $50,000?

$50,000 × 92.35% = $46,175; × 15.3% = $7,064.78. Half of it, about $3,532, is deductible.

How much self-employment tax on $100,000?

$92,350 × 15.3% = $14,129.55 in SE tax, below the 2026 wage base.

Do I pay SE tax if I earn less than $400?

No. If your net earnings from self-employment (92.35% of profit) are under $400, there is no SE tax.

Does my W-2 job reduce my self-employment tax?

Only the Social Security part, and only if wages plus net earnings exceed the wage base. Wages fill the $184,500 base first; Medicare is charged on everything.

Is self-employment tax deductible?

Half of it is deductible as an adjustment to income on Form 1040. It lowers income tax, not the SE tax itself.

Sources and legal basis

As of: · Editorial policy

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