Self-Employment Tax Calculator
Estimate your 2026 self-employment tax (Social Security and Medicare) for freelancers, independent contractors, gig workers, and small business owners. Includes the deduction for the employer-equivalent portion of SE tax.
What Is Self-Employment Tax?
Self-employment tax (SE tax) is the Social Security and Medicare tax that self-employed individuals must pay. While W-2 employees split these taxes with their employer (6.2% + 1.45% each), self-employed individuals pay both the employee and employer portions — a combined rate of 15.3% on net earnings.
The SE tax consists of two parts:
- Social Security (OASDI): 12.4% on net earnings up to the annual wage base ($184,500 for 2026, $176,100 for 2025).
- Medicare (HI): 2.9% on all net earnings with no income limit.
- Additional Medicare Tax: 0.9% on net earnings over $200,000 (single) or $250,000 (married filing jointly).
You can deduct 50% of your self-employment tax as an adjustment to income on Form 1040 (the employer-equivalent portion).
How Does the Self-Employment Tax Calculator Work?
The calculator follows the IRS Schedule SE method:
Step 1: Calculate the Social Security portion: 12.4% × min(net profit, wage base)
Step 2: Calculate the Medicare portion: 2.9% × net profit
Step 3: Calculate Additional Medicare Tax (if applicable): 0.9% × (net profit − threshold)
Step 4: Total SE Tax = Social Security + Medicare + Additional Medicare
Step 5: Deduction = 50% of total SE tax
For example: $50,000 net profit in 2026:
- Social Security: 12.4% × $50,000 = $6,200
- Medicare: 2.9% × $50,000 = $1,450
- Total SE Tax: $7,650
- Deduction: 50% × $7,650 = $3,825
Why Use This Self-Employment Tax Calculator?
- Accurate Rates: Updated for 2026 with the $184,500 Social Security wage base.
- Multiple Years: Switch between 2025 and 2026 rates.
- W-2 Comparison: See how much more you pay as a self-employed individual.
- SE Tax Deduction: Shows the deductible portion of your SE tax.
- Free & Private: No registration, no data storage.
Who Must Pay Self-Employment Tax?
- You must pay SE tax if your net earnings from self-employment are $400 or more in a tax year.
- This applies to freelancers, independent contractors, gig workers, sole proprietors, and LLC members.
- You must file Schedule SE (Form 1040) to calculate your SE tax.
- Even if you have a full-time W-2 job, you must pay SE tax on your side business income.
❓ Self-Employment Tax FAQ
What is the self-employment tax rate for 2026?
The self-employment tax rate remains 15.3% for 2026 — 12.4% for Social Security and 2.9% for Medicare. The Social Security wage base for 2026 is $184,500.
What is the Social Security wage base for 2026?
The Social Security wage base for 2026 is $184,500. For 2025, it was $176,100. Earnings above this amount are not subject to Social Security tax.
How is self-employment tax different from income tax?
Self-employment tax is separate from income tax. SE tax funds Social Security and Medicare, while income tax funds general government operations. You must pay both, but the calculator focuses only on SE tax.
Do I have to pay self-employment tax if I also have a W-2 job?
Yes. If you have self-employment income in addition to W-2 wages, you must pay SE tax on your self-employment earnings. Your W-2 wages already have Social Security and Medicare taxes withheld.
What is the deduction for self-employment tax?
You can deduct 50% of your self-employment tax as an adjustment to income on Form 1040. This represents the employer-equivalent portion of the tax and reduces your adjusted gross income.
What is the additional Medicare tax?
An additional 0.9% Medicare tax applies to self-employment earnings over $200,000 for single filers, $250,000 for married filing jointly, and $125,000 for married filing separately.
How do I calculate self-employment tax?
Calculate your net profit from Schedule C, then apply the 15.3% rate (12.4% Social Security up to the wage base + 2.9% Medicare). This calculator does the math for you.
What is Schedule SE?
Schedule SE (Form 1040) is the IRS form used to calculate self-employment tax. You must file it with your tax return if your net earnings from self-employment are $400 or more.
How does self-employment tax compare to W-2 withholding?
W-2 employees pay 7.65% (6.2% Social Security + 1.45% Medicare), with their employer paying the other 7.65%. Self-employed individuals pay the full 15.3% — both the employee and employer shares.
Do I have to pay self-employment tax if I have a loss?
No. If your net profit is zero or negative, you do not owe self-employment tax. You also are not required to file Schedule SE if your net earnings are less than $400.
What is the self-employment tax rate for 2025?
The 2025 self-employment tax rate was also 15.3%, with the Social Security wage base set at $176,100. The calculator lets you switch between 2025 and 2026.
How can I reduce my self-employment tax?
You can reduce your SE tax by lowering your net profit through business deductions (home office, vehicle expenses, health insurance premiums, retirement contributions). You can also structure your business as an S-corp to pay yourself a reasonable salary and take distributions that aren't subject to SE tax.
Is self-employment tax deductible?
Yes. You can deduct 50% of your SE tax as an above-the-line deduction on Form 1040. This reduces your adjusted gross income but does not reduce your SE tax liability itself.
What happens if I don't pay self-employment tax?
Failure to pay SE tax can result in penalties and interest from the IRS. You may also not receive credit toward Social Security and Medicare benefits for those earnings.
Do I need to make estimated tax payments?
Yes. Since self-employment taxes are not withheld from your income, you typically need to make quarterly estimated tax payments to the IRS to avoid penalties. This includes both income tax and self-employment tax.
What is the difference between self-employment tax and FICA?
FICA (Federal Insurance Contributions Act) is the tax that W-2 employees pay (7.65% each for employee and employer). Self-employment tax is the equivalent for self-employed individuals (15.3% total). They fund the same programs — Social Security and Medicare.
How does the calculator handle additional Medicare tax?
The calculator applies the additional 0.9% Medicare tax automatically when your self-employment income exceeds the threshold based on your filing status (single: $200,000, married joint: $250,000).
Can I use this calculator for my LLC or S-corp?
For a single-member LLC (disregarded entity) or sole proprietorship, your net profit is subject to SE tax. For an S-corp, only your reasonable salary is subject to SE tax. This calculator is designed for sole proprietors and single-member LLCs.
How accurate is this self-employment tax calculator?
This calculator provides accurate estimates based on the 2026 IRS tax rates and wage base. However, actual tax liability may vary based on your specific situation. Always consult a tax professional for precise calculations.