Self-Employment Tax Calculator
Use this self employment tax calculator to estimate the 2026 Social Security and Medicare tax you owe on freelance, gig or small-business profit. It follows the Schedule SE steps, applies the $184,500 Social Security wage base, accounts for W-2 wages from a job, and shows the deductible half of the tax, a quarterly set-aside and any Additional Medicare Tax.
Updated
Results
- Social Security portion (12.4%)Capped at the 2026 wage base
- Medicare portion (2.9%)
- Net earnings from self-employmentNet profit × 92.35%
- Deductible half of SE taxAbove-the-line deduction on Schedule 1
- Quarterly set-aside for SE taxSE tax ÷ 4; income tax not included
- Additional Medicare Tax (0.9%)Form 8959; shown only above the threshold
- SE tax as % of net profit
Results are estimates. See the methodology below.
How to use the calculator
- Net profit: your business income minus business expenses, usually Schedule C line 31 (or your share from a partnership K-1). If you run more than one business, add the profits and losses together.
- Filing status: used only for the Additional Medicare Tax threshold.
- Advanced options: W-2 wages subject to Social Security from any job you also hold (box 3 of your W-2). They use up part of the wage base and the Additional Medicare threshold.
Additional Medicare Tax appears only when your income is above the threshold for your filing status.
How self-employment tax is calculated
- Net earnings from self-employment = net profit × 92.35%. This adjustment mirrors the employer half of payroll tax that an employee never sees in their pay.
- If net earnings are under $400, no SE tax is due.
- Social Security = 12.4% of net earnings, up to the 2026 wage base of $184,500 minus your W-2 Social Security wages.
- Medicare = 2.9% of all net earnings, with no cap.
- SE tax = Social Security + Medicare. Half of it is an above-the-line deduction on Schedule 1, which lowers your adjusted gross income but not the SE tax itself.
Additional Medicare Tax (Form 8959) is 0.9% of combined wages and self-employment earnings above $200,000 for single and head of household filers, $250,000 for married filing jointly and $125,000 for married filing separately. Your W-2 wages use up the threshold first. It's shown separately because it isn't part of Schedule SE and isn't deductible.
The quarterly figure is SE tax ÷ 4. It does not include federal income tax, state tax, the optional farm and nonfarm methods, church employee income or the qualified business income deduction.
Worked examples
1. Freelancer with $60,000 profit
Net earnings are $55,410. Social Security is $6,870.84 and Medicare $1,606.89, for $8,477.73 in SE tax, or 14.13% of profit. You can deduct $4,238.87, and setting aside $2,119.43 a quarter covers the SE tax portion of your estimates.
2. $60,000 side business plus a $150,000 salary
Your job already used $150,000 of the $184,500 wage base, so only $34,500 of your net earnings gets Social Security: $4,278.00. Medicare stays at $1,606.89, so SE tax is $5,884.89. Because wages plus net earnings exceed $200,000 (single), you also owe $48.69 of Additional Medicare Tax.
3. High earner: $250,000 profit
Net earnings of $230,875 exceed the wage base, so Social Security is capped at $22,878.00. Medicare is $6,695.38, for an SE tax of $29,573.38 (11.83% of profit). Filing single, Additional Medicare Tax adds $277.88; married filing jointly with no other wages, it's $0.
How to read your results
For most people, SE tax is about 14.13% of net profit until the wage base is reached, after which only the 2.9% Medicare part continues. That's why the effective rate falls at higher incomes. Remember that income tax is owed on top of SE tax, so your quarterly payments will usually need to be larger than the quarterly figure shown here.
Frequently asked questions
What is the self-employment tax rate for 2026?
The combined rate is 15.3%: 12.4% for Social Security on net earnings up to $184,500 and 2.9% for Medicare on all net earnings. Because the rate applies to 92.35% of profit, the effective cost is about 14.13% of profit below the wage base.
Who has to pay self-employment tax?
Generally, anyone with net earnings from self-employment of $400 or more, including sole proprietors, independent contractors, gig workers and most general partners. For example, $433 of profit gives net earnings of $399.88, below the threshold, so no SE tax is due.
Do I have to make quarterly estimated payments?
The IRS generally expects estimated payments if you'll owe $1,000 or more in total tax, income tax included, when you file. Payments are made with Form 1040-ES, usually in April, June, September and January.
Does having a W-2 job lower my self-employment tax?
It can. Social Security tax stops once wages and self-employment earnings together reach the wage base, so high W-2 wages reduce the Social Security part of SE tax. Medicare applies to every dollar either way.
What if my business had a loss?
A net loss means no SE tax for that business. If you have several businesses, combine them: a loss in one reduces the profit from another before the 92.35% step.
Sources
This calculator gives estimates for educational purposes and is not tax advice. Your actual liability depends on your full return; consult the IRS instructions or a tax professional.