When you work for yourself, nobody withholds Social Security and Medicare from your pay — you pay both the employee and the employer share through self-employment (SE) tax. For many freelancers and small-business owners it is a bigger bill than income tax. This calculator applies the 2026 Schedule SE rules, including the Social Security wage base published by the Social Security Administration.
How to use the self-employment tax calculator
- Enter your net self-employment profit: business income minus deductible business expenses (Schedule C line 31 for a sole proprietor).
- Choose your filing status. It matters only for the 0.9% Additional Medicare Tax on high earnings.
- If you also had a job, enter your W-2 wages so the calculator can apply the Social Security cap to your combined earnings.
- Read the SE tax, the deductible half, and a quarterly amount to set aside.
Self-employment tax formula
If net earnings are under $400, no SE tax is due. Above $200,000 of combined earnings ($250,000 joint, $125,000 separate), a further 0.9% Additional Medicare Tax applies on Form 8959.
Worked example
A freelance designer has $80,000 of net profit in 2026 and no other job.
Net earnings = 80,000 × 0.9235 = $73,880
Social Security = 73,880 × 12.4% = $9,161.12
Medicare = 73,880 × 2.9% = $2,142.52
SE tax = $11,303.64 (14.13% of profit); deductible half = $5,651.82
Setting aside about $2,826 a quarter covers the SE tax, but income tax comes on top of that.
Now suppose a consultant has $250,000 of profit and a $60,000 salary from a part-time job. Only $124,500 of earnings remain under the wage base, so Social Security tax is $15,438 and Medicare $6,695.38, for $22,133.38 — plus $817.87 of Additional Medicare Tax.
2026 figures used
| Item | 2026 amount | Source |
|---|---|---|
| SE tax rate | 15.3% (12.4% + 2.9%) | IRS, Schedule SE |
| Social Security wage base | $184,500 (up from $176,100) | Social Security Administration |
| Net earnings factor | 92.35% | IRS, Schedule SE |
| Filing threshold | $400 of net earnings | IRS |
| Additional Medicare Tax | 0.9% over $200,000 / $250,000 / $125,000 | IRS, Form 8959 |
Ways to manage self-employment tax
- Track every deductible expense. SE tax is based on profit, so legitimate business deductions — equipment, software, a home office, mileage — reduce it at roughly a 14% rate before income tax savings.
- Pay quarterly. The IRS expects estimated payments during the year; paying late can trigger an underpayment penalty.
- Consider an S corporation only with advice. Owners who pay themselves a reasonable salary through an S corporation pay payroll tax only on that salary, but the structure adds payroll, accounting and state costs.
- Retirement contributions do not reduce SE tax — a solo 401(k) or SEP IRA lowers income tax, not the SE tax base.
To price your work so taxes are covered, use the freelance rate calculator. For the income tax side, see the federal income tax calculator.
This is an estimate based on 2026 SSA and IRS figures, not tax advice. Farm income, church employee income, optional methods and state taxes are not included.
Frequently asked questions
What is the self-employment tax rate for 2026?
It is 15.3%: 12.4% for Social Security and 2.9% for Medicare. It applies to 92.35% of your net self-employment profit, so the effective rate on profit is about 14.13%. The Social Security part stops once your combined wages and net earnings reach the 2026 wage base of $184,500.
Why is self-employment tax calculated on 92.35% of profit?
Employees pay 7.65% while their employer pays another 7.65% that is not counted as the employee's wages. To put the self-employed on the same footing, Schedule SE first reduces net profit by 7.65% (multiplying it by 92.35%) before applying the full 15.3%.
Can I deduct self-employment tax?
You can deduct half of your self-employment tax as an adjustment to income on Schedule 1. It lowers your adjusted gross income and income tax, but it does not reduce the self-employment tax itself. The 0.9% Additional Medicare Tax is not part of the deduction.
Do I pay SE tax if I also have a W-2 job?
Yes, but the Social Security portion is capped on your combined earnings. Wages that already had Social Security withheld reduce the room left under the $184,500 wage base, so high earners with a salary may owe only the 2.9% Medicare part on side income.
When is self-employment tax due?
It is paid with your income tax, usually through quarterly estimated payments due in April, June, September and January. You must file Schedule SE if net earnings from self-employment are $400 or more.