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Self-employment tax calculator

If you work for yourself, you pay Social Security and Medicare on your profit: 15.3% of 92.35% of it, on top of income tax. Enter your 2026 numbers to see what you owe and what to set aside each quarter.

Published

Your business is a
$

Income minus business expenses (Schedule C line 31) for 2026.

Filing status

Only changes the 0.9% Additional Medicare Tax.

$

Wages that already paid Social Security lower the Social Security part once you pass $184,500.

Self-employment tax for 2026

$0

0% of your profit

  • Social Security (12.4%)$0
  • Medicare (2.9%)$0
  • Additional Medicare (0.9%)$0

Set aside each quarter

$0

Due dates

You can deduct

$0

Half, on Schedule 1

What is self-employment tax?

Self-employment tax is Social Security and Medicare tax for people who work for themselves. An employee splits these taxes with their employer: each pays 7.65% of the wages. When you are self-employed, you are both, so you pay both halves, 15.3% in total. That is why the IRS lets you deduct the "employer" half from your income.

You pay it on top of income tax, through Schedule SE on your Form 1040 and through your quarterly estimated tax payments.

Who has to pay it?

You owe self-employment tax if your net earnings from self-employment are $400 or more for the year. That includes:

  • Sole proprietors and freelancers who file Schedule C
  • Owners of a single-member LLC taxed as a sole proprietorship (the default)
  • Independent contractors who get a 1099-NEC or 1099-K
  • General partners, on their share of partnership income

How it is worked out

  1. Find your net earnings. Take 92.35% of your net profit. The 7.65% left out matches the employer half that an employer would not pay tax on. Under $400, you owe nothing.
  2. Social Security: 12.4% of your net earnings, up to $184,500 for 2026, less any W-2 wages that already paid Social Security.
  3. Medicare: 2.9% of all your net earnings, with no limit.
  4. Additional Medicare Tax: 0.9% of net earnings above $200,000 (single or head of household), $250,000 (married filing jointly) or $125,000 (married filing separately), with the threshold lowered by your W-2 wages. It goes on Form 8959 and is not part of the deduction.
  5. Deduct half. Half of the Social Security and Medicare tax is an adjustment on Schedule 1. It lowers your income tax.

An example

Sam is a single freelance designer with $60,000 of profit in 2026 and no other job. Net earnings are $55,410. Social Security is $6,871 and Medicare is $1,607, so self-employment tax is $8,478, about $2,119 a quarter. Sam can deduct $4,239 on Schedule 1.

Paying it during the year

There is no employer to withhold the tax, so you pay it four times a year with estimated tax payments, together with your income tax. If you pay too little during the year, the IRS can charge a penalty, even if you pay in full in April. The quarterly amount above is the self-employment part only; add your income tax to it.

Keep your profit up to date

The calculator is only as good as the profit you put in. If your books are current, you know your profit at any time and can adjust what you set aside each quarter. Righto, the free accounting app for Mac, gives you a profit and loss report from your bank statements in minutes.

What this calculator does not include

Income tax on your profit, state tax, church employee income, and the optional methods for farmers and low earners. If you are married and both of you have self-employment income, each of you files your own Schedule SE.

Frequently asked questions

What is the self-employment tax rate?

15.3% of 92.35% of your net profit: 12.4% for Social Security (on up to $184,500 of earnings in 2026) and 2.9% for Medicare. Above a threshold, 0.9% Additional Medicare Tax is added.

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

About $7,065 for 2026, or $1,766 a quarter. You can deduct $3,532 of it when you work out your income tax.

Is self-employment tax on top of income tax?

Yes. Self-employment tax pays for Social Security and Medicare. You also pay federal income tax (and maybe state tax) on your profit. Both are paid through your return and your quarterly estimated payments.

When do I not owe self-employment tax?

When your net earnings from self-employment (92.35% of your net profit) are less than $400 for the year.

Does a single-member LLC pay self-employment tax?

Usually, yes. By default the IRS treats a single-member LLC as a sole proprietorship, so its profit goes on Schedule C and Schedule SE. An LLC that elects to be taxed as a corporation is different; ask a tax professional about that choice.

I also have a W-2 job. Does that change anything?

Your Social Security tax is capped at $184,500 of combined wages and self-employment earnings for 2026. Wages that already paid Social Security use up part of that cap. Enter them above and the calculator lowers the Social Security part. Medicare has no cap.

Where do I deduct half of the tax?

On Schedule 1 of Form 1040, as an adjustment to income. It lowers your income tax, not your self-employment tax or your Schedule C profit.

How can I lower my self-employment tax?

Self-employment tax is worked out from your profit, so every business expense you record lowers it. Track all of them, including the business share of your phone, internet and car. Contributions to a SEP or solo 401(k) lower your income tax but not your self-employment tax.

Sources

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