Self Employment Tax Calculator 2026 – SE Tax, Social Security & Medicare
Calculate your exact self employment tax for 2026 using the IRS Schedule SE formula. Get your Social Security tax, Medicare tax, deductible half of SE tax, and quarterly estimated payment amounts — all in one free tool.
Step 1: Net Income × 92.35% = SE Taxable Income
Step 2: SE Taxable Income × 15.3% = SE Tax
Step 3: SE Tax × 50% = Deductible amount (reduces your income tax)
Example: $80,000 × 0.9235 = $73,880 × 0.153 = $11,304 SE Tax → deduct $5,652
Self Employment Tax Calculator 2026
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2026 Self Employment Tax Rates & Rules
| Tax Component | Rate | 2026 Income Cap | Notes |
|---|---|---|---|
| Social Security Tax | 12.4% | $184,500 | Only on first $184,500 of net SE earnings (up from $176,100 in 2025) |
| Medicare Tax | 2.9% | No cap | Applies to ALL net SE earnings, no limit |
| Total SE Tax Rate | 15.3% | — | Combined rate for earnings up to $184,500 |
| SE Tax above $184,500 | 2.9% | No cap | Only Medicare applies above Social Security wage base |
| Additional Medicare Surtax | 0.9% | See notes | Single: income >$200K | Married joint: >$250K | Separate: >$125K |
| SE Taxable Income Factor | 92.35% | — | Net income × 92.35% = taxable base (accounts for employer deduction) |
| Deductible Half of SE Tax | 50% | — | Deduct half your SE tax from gross income on Schedule 1, Form 1040 |
| Quarterly Payment Threshold | $1,000+ | — | Must pay estimated taxes if you expect to owe ≥$1,000 |
✱ Sources: IRS — Self-Employment Tax, SSA — Contribution & Benefit Base, OnPay 2026 SE Tax Guide.
Keep in mind: this estimates self-employment tax only. It does not calculate federal or state income tax, credits, or deductions beyond the standard adjustments built into the calculator, and your situation (multiple income sources, wages already taxed for Social Security, entity type) can change the result. Confirm figures before filing or making estimated payments.
Rates checked: October 7, 2026 · See our Disclaimer
How to Calculate Self Employment Tax — Step by Step
Subtract all allowable business expenses from your gross 1099/freelance income. This is your net profit. Example: $100,000 gross − $20,000 expenses = $80,000 net income.
The IRS allows you to reduce net income by 7.65% (the employer's share of FICA) before calculating SE tax. Example: $80,000 × 0.9235 = $73,880.
Apply the 15.3% rate (12.4% Social Security + 2.9% Medicare) to your SE taxable income. If your income exceeds the Social Security wage base ($184,500 in 2026), only 2.9% applies to the excess. Example: $73,880 × 0.153 = $11,304.
The IRS allows you to deduct half of SE tax as an above-the-line deduction on Schedule 1. This reduces your AGI and your income tax bill. Example: $11,304 ÷ 2 = $5,652 deduction.
Self-employed people pay taxes quarterly using Form 1040-ES. Divide your annual SE tax by 4. Due dates: April 15, June 16, September 15 (2026), and January 15 (2027).
ℹ️ What Is Self Employment Tax?
SE Tax vs. Income Tax — Key Difference
Self employment tax (SE tax) is separate from federal income tax. SE tax covers Social Security (12.4%) and Medicare (2.9%) — the same taxes that employers and employees split on W-2 income. When you're self-employed, you pay both the employer and employee halves — hence 15.3% total.
Who Must Pay Self Employment Tax?
You must pay SE tax if your net self-employment earnings are $400 or more per year. This includes freelancers, independent contractors, gig workers, sole proprietors, LLC members, and anyone receiving 1099-NEC or 1099-MISC income.
The 92.35% Factor Explained
The IRS multiplies your net income by 92.35% (= 1 − 7.65%) before applying the 15.3% rate. This is because employees only pay 7.65% (half of 15.3%) — the employer pays the other half. The 92.35% factor approximates this employer-equivalent deduction for self-employed people.
2026 Social Security Wage Base: $184,500
For 2026, the Social Security portion of SE tax (12.4%) only applies to the first $184,500 of net SE earnings. This is up from $176,100 in 2025. All earnings are subject to the 2.9% Medicare tax with no cap.
Frequently Asked Questions
Multiply net income × 92.35% × 15.3%. Example: $80,000 × 0.9235 = $73,880 × 0.153 = $11,304 SE tax. Then deduct 50% ($5,652) from your gross income on Form 1040 Schedule 1.
The IRS formula uses Schedule SE. Net profit × 92.35% gives SE taxable income. That amount × 15.3% (12.4% SS + 2.9% Medicare) gives your SE tax. The 92.35% factor represents the employer-equivalent deduction since you pay both halves.
15.3% total: 12.4% Social Security on first $184,500 of net earnings, plus 2.9% Medicare on all earnings. An additional 0.9% Medicare surtax applies above $200,000 (single) or $250,000 (married jointly).
Yes. The IRS allows you to deduct 50% of SE tax as an above-the-line adjustment on Schedule 1 (Form 1040). This reduces your AGI and income tax, but does not reduce the SE tax itself.
Set aside 25–30% of every payment. This covers 15.3% SE tax plus federal income tax (10–22% for most). Use a separate savings account and transfer money immediately when paid.
Q1 → April 15, 2026 | Q2 → June 15, 2026 | Q3 → September 15, 2026 | Q4 → January 15, 2027. Pay using Form 1040-ES. You must pay if you expect to owe $1,000 or more.
On net income (gross income minus business expenses), then multiplied by 92.35%. This is why tracking business expenses is critical — every deductible expense reduces both your income tax AND your SE tax.
SE tax (15.3%) covers Social Security and Medicare. Federal income tax is separate and based on your tax bracket (10–37%). You pay both. The deductible half of SE tax reduces your income tax calculation but not the SE tax itself.
This is an estimate for planning, not tax advice. Confirm your figures before filing or paying. Read our Disclaimer.