This self employment tax calculator 2026 computes your 15.3% SE tax — 12.4% Social Security on net earnings up to the 2026 wage base of $184,500, plus 2.9% Medicare with no cap. Self-employment tax is levied on 92.35% of your net profit, and you can deduct half of it against income tax. Enter your net profit (and any W-2 wages) to see your exact self-employment tax and the deductible portion.
When you work for yourself — as a freelancer, gig worker, independent contractor, sole proprietor, or partner — you pay both the employee and employer halves of Social Security and Medicare. Combined, that is the 15.3% self-employment tax. An employee splits FICA 50/50 with their employer; a self-employed person pays the whole 15.3% but gets to deduct half on their income tax return.
| Component | Rate | 2026 cap |
|---|---|---|
| Social Security (OASDI) | 12.4% | Net earnings up to $184,500 |
| Medicare (HI) | 2.9% | No cap (all net earnings) |
| Additional Medicare | +0.9% | Net earnings over $200,000 (single) |
| Combined base rate | 15.3% | On 92.35% of net profit |
You do not pay SE tax on 100% of your net profit. First multiply net profit by 0.9235 to get your "net earnings from self-employment," then apply the 15.3% rate. This excludes the employer-equivalent FICA share, matching how an employee's taxable wage excludes their employer's contribution.
Approximate SE tax at various profit levels (all under the $184,500 Social Security cap, so the full 15.3% applies):
| Net profit | SE base (92.35%) | SE tax (15.3%) | Deductible half |
|---|---|---|---|
| $20,000 | $18,470 | $2,825.91 | $1,412.96 |
| $50,000 | $46,175 | $7,064.78 | $3,532.39 |
| $80,000 | $73,880 | $11,303.64 | $5,651.82 |
| $120,000 | $110,820 | $16,955.46 | $8,477.73 |
| $184,500 | $170,386 | $26,069.10 | $13,034.55 |
These are two separate taxes. SE tax (15.3%) funds Social Security and Medicare. Federal income tax is calculated on your net profit (after the half-SE-tax deduction and QBI deduction) at your bracket. A freelancer netting $80,000 owes roughly $11,304 SE tax plus federal income tax of several thousand dollars — budget for both.
You deduct exactly one-half of your self-employment tax as an above-the-line adjustment. On $11,304 of SE tax, that is a $5,652 deduction that lowers your taxable income for the regular income tax (not the SE tax). It is available even if you take the standard deduction.
SE tax is reported on Schedule SE and paid through quarterly estimated taxes (Form 1040-ES) since no employer withholds for you. The 2026 estimated due dates are roughly April 15, June 15, September 15, and January 15 of the next year. See our quarterly estimated tax calculator to plan your payments.
Self-employment tax is 15.3% on 92.35% of your net self-employment earnings. That 15.3% is 12.4% Social Security (applied up to the 2026 wage base of $184,500) plus 2.9% Medicare (no cap). You multiply net profit by 0.9235, then by 15.3% (or the split rates once over the cap).
15.3% total: 12.4% for Social Security on net earnings up to $184,500, and 2.9% for Medicare on all net earnings. Earnings above $200,000 (single) also pay an extra 0.9% Additional Medicare Tax, making the top Medicare rate 3.8%.
You only pay SE tax on 92.35% of net profit because the law lets you exclude the employer-equivalent half of FICA (7.65%) before computing the tax — 100% minus 7.65% equals 92.35%. This mirrors how an employee's wages exclude the employer's FICA share.
Yes. You deduct one-half of your SE tax as an above-the-line adjustment to income on your federal return. This reduces your income tax (not the SE tax itself) and is available whether or not you itemize.
Yes, both. SE tax (15.3%) funds Social Security and Medicare. On top of that, your net profit is also subject to regular federal income tax at your bracket, and possibly state income tax. The two are calculated separately.
If your net self-employment earnings are $400 or more for the year, you must file Schedule SE and pay SE tax. Below $400, no SE tax is due (though income tax rules may still apply).
No. The 20% Qualified Business Income (QBI) deduction reduces your income tax, not your self-employment tax. SE tax is computed on net profit before the QBI deduction.
Common strategies: maximize deductible business expenses to lower net profit, contribute to a SEP-IRA or Solo 401(k), and if profits are high, consider an S-corporation election to split income between salary and distributions (distributions are not subject to SE tax). Consult a tax professional.