Self-Employment Tax Calculator
See your 2026 self-employment tax, what to set aside each month, and the deductible half — no login.
Your details
Rough figures are fine — you can refine later.
How we calculate this
We follow the IRS Schedule SE method for the selected tax year. All rates and caps come from our versioned tax-constants.json, verified against IRS/SSA sources.
1. Net earnings. Net profit × 92.35% (the net-earnings factor). This removes the employer-equivalent share before the tax applies.
2. Social Security portion. 12.4% of net earnings, up to the annual wage base ($184,500 for 2026). Earnings above the base are not subject to this 12.4%.
3. Medicare portion. 2.9% of all net earnings, with no cap.
4. Additional Medicare. An extra 0.9% applies to net earnings above $200,000 (single) / $250,000 (MFJ). This surtax is not deductible.
5. Deductible half. You may deduct one-half of the Social Security + Medicare portions (not the 0.9% surtax) as an above-the-line income-tax deduction.
Assumptions: sole proprietor / single-member LLC on Schedule C, a single business, no S-corp election. State rules are handled separately.
Primary sources
- IRS Schedule SE (Form 1040), Self-Employment Tax
- IRS Publication 334, Tax Guide for Small Business
- SSA 2026 Social Security wage base ($184,500)
- IRS Additional Medicare Tax (Form 8959) / Topic No. 751
What self-employment tax actually is
If you're a freelancer, 1099 contractor, or gig worker, you pay self-employment (SE) tax on top of regular income tax. It's how the self-employed cover Social Security and Medicare — the same contributions an employer and employee split on a W-2, except now you're both. That's why the rate feels steep: 15.3% (12.4% Social Security + 2.9% Medicare) on most of your net profit.
The number that trips people up is that SE tax isn't charged on your full profit. You first multiply net profit by 92.35% to get your "net earnings from self-employment," and the 15.3% applies to that. The Social Security portion only applies up to an annual wage base; earnings above it are hit with the 2.9% Medicare piece (plus a 0.9% surtax at higher incomes).
Why the answer here is more than a number
A raw "$14,000" doesn't tell you what to do. This tool translates it: what to set aside each month, what share of your profit it represents, and the deductible half you can write off against income tax. Half of the SE tax you owe (the Social Security + Medicare portions, not the 0.9% surtax) is deductible above the line — a real offset most freelancers forget to plan for.
How to use the result
- Set aside the monthly figure in a separate account as you get paid — SE tax is due through quarterly estimated payments, not once in April.
- Remember the deductible half. It lowers your income tax, so your true combined burden is less than SE tax plus income tax added naively.
- Watch the wage base. Once your net earnings cross it, the Social Security portion stops growing — only the Medicare portion continues.
Who this is for
Sole proprietors and single-member LLCs reporting business income on Schedule C. If you've elected S-corp treatment, your salary is taxed differently (see the LLC vs S-Corp tool) — this estimate assumes a straightforward sole proprietor.
This is an estimate to help you plan, not a filed return. For your specific situation — multiple income sources, state nuances, the additional Medicare surtax — confirm with a qualified tax professional.
Common questions
How much should I set aside for self-employment tax? + −
Set aside the monthly figure this tool shows as you get paid, in a separate account. SE tax is generally paid through quarterly estimated payments — not once at filing. Many freelancers combine SE tax and income tax and set aside 25–30% of net profit.
Is self-employment tax on top of income tax? + −
Yes. SE tax covers Social Security and Medicare; income tax is separate. The deductible half of your SE tax does lower your income tax, so the combined burden is a bit less than adding the two naively.
Why is the tax based on 92.35% of my profit? + −
The 92.35% factor removes the employer-equivalent share of Social Security and Medicare before the 15.3% applies, mirroring how an employee’s wages are treated. It is the standard IRS Schedule SE method.
How can I lower my self-employment tax? + −
Legitimate business deductions reduce your net profit and therefore the tax. At higher profits, an S-corp election can change how much is subject to payroll tax — see the LLC vs S-Corp calculator. Always confirm with a CPA/EA.
Keep going
Prepared for tax year 2026. Every rate and cap on this page cites a primary IRS or SSA source. Estimates only — not tax or financial advice. — for planning purposes only, not tax, legal, or financial advice.