Self-Employment Tax Calculator
Estimate the self-employment tax (Social Security and Medicare) you owe on freelance, contractor, or small-business profit for 2026. Enter your net earnings and the calculator applies the SECA rates to 92.35% of that income, exactly as Schedule SE does.
It also shows the deductible half of the tax — the portion you can subtract from income on your Form 1040 — and coordinates the Social Security piece with any W-2 wages you have already paid it on, using the 2026 wage base of $184,500.
Net earnings are your business profit — income minus deductible business expenses (Schedule C). Leave the W-2 field at $0 if self-employment is your only income.
Estimated 2026 self-employment tax
$8,478
- Net earnings (92.35% of profit)
- $55,410
- Social Security (12.4%)
- $6,871
- Medicare (2.9%)
- $1,607
- Deductible half (Form 1040)
- $4,239
- Effective rate on profit
- 14.13%
Estimate only — not tax advice. This is the SECA (Social Security + Medicare) tax from Schedule SE; it does not include federal or state income tax, or the additional 0.9% Medicare tax on earnings above $200,000. Verify against the current IRS Schedule SE instructions before filing.
Calculation Formulas
Only 92.35% of your profit is subject to SE tax. The 7.65% reduction stands in for the employer-half of FICA that an employee would not be taxed on.
Example:
$60,000 profit × 0.9235 = $55,410 in taxable net earnings.
The 12.4% Social Security tax applies only up to the annual wage base, and that cap is shared with any wages you already paid Social Security tax on at a W-2 job.
Medicare has no wage cap, so 2.9% applies to all of your net earnings. An extra 0.9% applies to earnings above $200,000 (computed separately on Form 8959).
You deduct half of your self-employment tax as an above-the-line adjustment to income on Form 1040, lowering your income-tax bill.
Key Figures
| Figure | Value | Description |
|---|---|---|
| SE tax rate | 15.3% | 12.4% Social Security + 2.9% Medicare on net earnings. |
| Net-earnings factor | 92.35% | Share of profit that is subject to SE tax. |
| 2026 Social Security wage base | $184,500 | Maximum earnings taxed for Social Security in 2026 (SSA). |
| Additional Medicare tax | 0.9% | Applies to earnings above $200,000 (Form 8959); not included here. |
Note: Results are estimates for planning purposes. Rates, fees, taxes, and insurance vary by lender and location — confirm exact figures with a licensed professional before making financial decisions.
Standards & Sources
Last verified: July 2026
- IRS Schedule SE
The calculation follows Schedule SE (Form 1040), the IRS form used to figure Social Security and Medicare tax on self-employment income.
- 2026 Social Security wage base
The $184,500 Social Security wage base for 2026 is set annually by the Social Security Administration and confirmed in IRS Publication 15.
- Income tax not included
Self-employment tax is separate from federal and state income tax. This tool estimates only the SECA (Social Security + Medicare) portion; it is not tax advice.
How to Use This Calculator
- Enter your net self-employment earnings — business income minus business expenses (your Schedule C profit).
- If you also have a W-2 job, enter the wages already subject to Social Security this year so the $184,500 cap is applied correctly.
- Read your total self-employment tax, split into its Social Security (12.4%) and Medicare (2.9%) parts.
- Note the deductible half, which you subtract as an above-the-line adjustment when you file.
Frequently Asked Questions
What is self-employment tax?
Self-employment (SE) tax is the Social Security and Medicare tax that self-employed people pay on their business profit — the SECA equivalent of the FICA taxes an employer and employee split. The combined rate is 15.3%: 12.4% for Social Security plus 2.9% for Medicare.
Why is only 92.35% of my income taxed?
Self-employment tax applies to 92.35% of your net earnings, not the full amount. The 7.65% reduction accounts for the employer-half of FICA that a regular employee would not be taxed on, keeping self-employed and employed workers on comparable footing.
Is there a cap on self-employment tax?
The 12.4% Social Security portion applies only up to the annual wage base — $184,500 for 2026 — and that cap is shared with any wages you already paid Social Security tax on at a W-2 job. The 2.9% Medicare portion has no cap, and earnings above $200,000 owe an extra 0.9% Medicare tax.
Can I deduct any of the self-employment tax?
Yes. You deduct one-half of your self-employment tax as an above-the-line adjustment to income on Form 1040, which lowers your income-tax bill (though not the SE tax itself). This calculator shows that deductible half.
Does this include income tax?
No. This estimates only the SE (Social Security + Medicare) tax from Schedule SE. You also owe federal and, in most states, state income tax on the same profit. Treat the result as an estimate and verify against the current IRS Schedule SE instructions before filing.
Related Calculators
Paycheck Calculator
Free paycheck calculator. Estimate your 2026 take-home pay after federal income tax, Social Security, and Medicare — from an hourly wage or salary, at any pay frequency.
Salary Calculator
Free salary calculator. Convert pay between hourly, daily, weekly, biweekly, monthly, and annual — and see what an hourly wage works out to as a yearly salary.
401(k) Calculator
Project your 401(k) balance at retirement with your contribution rate, employer match, salary growth, and the 2026 IRS contribution limits and catch-ups.