This self-employment tax calculator computes the 2026 SE tax you owe on net business profit. Self-employed people pay both the employee and employer halves of FICA — a combined 15.3% (12.4% Social Security up to the $184,500 wage base plus 2.9% Medicare with no cap). The tax is figured on 92.35% of your net profit, and half of it is deductible against your income tax. Enter your net profit below for the full breakdown.
When you work for an employer, you and the employer split the 15.3% FICA tax 7.65% each. When you are self-employed, you pay both halves. The IRS first multiplies your net profit by 92.35% (this mirrors the employer-half deduction), then applies 12.4% Social Security up to the $184,500 wage base and 2.9% Medicare on the full amount. You then deduct half the SE tax when figuring your income tax, which softens the blow. SE tax is reported on Schedule SE and filed with Form 1040.
| Step | Calculation | Amount |
|---|---|---|
| Net profit | Schedule C line 31 | $80,000 |
| SE tax base | $80,000 × 92.35% | $73,880 |
| Social Security (12.4%) | $73,880 × 12.4% | $9,161 |
| Medicare (2.9%) | $73,880 × 2.9% | $2,143 |
| Total SE tax | $11,304 | |
| Deductible half | $11,304 ÷ 2 | $5,652 |
The 12.4% Social Security portion only applies to your first $184,500 of combined earnings in 2026. If you also have a W-2 job, the wages already taxed for Social Security there reduce the room left for your self-employment income — enter your W-2 Social Security wages in the calculator so it does not double-count the cap. The 2.9% Medicare portion has no cap, and a 0.9% additional Medicare tax applies above $200,000.
Self-employment tax is separate from income tax. On $80,000 of net profit you owe about $11,304 in SE tax plus federal (and state) income tax on the profit, minus the deductible half of the SE tax and any QBI deduction. Because nobody withholds for you, most self-employed people pay quarterly estimates — see the quarterly estimated tax calculator to avoid underpayment penalties.
Anyone with $400 or more in net self-employment earnings — freelancers, gig workers, independent contractors, sole proprietors, and most LLC members — owes SE tax. S-corporation shareholders are different: only their reasonable W-2 salary is subject to FICA, which is why some owners elect S-corp status. Compare the two with our owner draw vs salary calculator.
Self-employment tax is 15.3% total: 12.4% Social Security on up to $184,500 of net earnings plus 2.9% Medicare on all net earnings. It is figured on 92.35% of your net profit, and half is deductible against income tax.
The 92.35% factor (100% minus 7.65%) mimics the deduction an employer would take for its share of FICA, so self-employed people are not taxed on the employer-equivalent portion. It is built into Schedule SE.
Yes. You deduct one-half of your SE tax as an above-the-line adjustment to income on Form 1040, which lowers your income tax (but not the SE tax itself). On $80,000 net profit the deductible half is about $5,652.
Yes, but the Social Security portion only applies until your combined earnings reach $184,500. Enter the Social Security wages from your W-2 so the calculator does not charge the 12.4% twice past the cap. Medicare has no cap.
About $11,304 in 2026: $9,161 Social Security plus $2,143 Medicare on the $73,880 SE base. Half of that ($5,652) is deductible when you compute your income tax.