Calculator · Tax year 2026
Self-Employment Tax Calculator 2026
If you work for yourself (freelancing, driving for apps, contracting), nobody withholds Social Security and Medicare from your pay. Estimate your 2026 self-employment tax, see every step, and keep your numbers private: everything runs in your browser.
Self-employment tax receipt · 2026
Enter your income and your receipt prints here.
How self-employment tax is calculated
Self-employment tax is the Social Security and Medicare tax for people who work for themselves. Employees split it with their employer, 7.65% each. When you are self-employed you pay both halves: 15.3%. The IRS calculates it on Schedule SE in four steps:
- Net profit: your self-employment income minus business expenses (Schedule C).
- Net earnings: multiply the profit by 92.35%. This mirrors the employer half that employees are not taxed on.
- Social Security: 12.4% of net earnings, up to $184,500 in 2026 (minus any W-2 wages).
- Medicare: 2.9% of all net earnings, with no cap.
Example: $50,000 of profit
| Net profit | $50,000.00 |
|---|---|
| Net earnings (× 92.35%) | $46,175.00 |
| Social Security (12.4%) | $5,725.70 |
| Medicare (2.9%) | $1,339.08 |
| Self-employment tax | $7,064.78 |
| Deductible half | $3,532.39 |
That is about 14.1% of the profit, or $588.73 a month if you set it aside as you earn.
Self-employment tax at common income levels
Because of the 92.35% step, the tax works out to about 14.1% of profit until the Social Security limit, and then drops as a share of income. Figures for 2026, single filer, no W-2 wages:
| Net profit | SE tax | Per month | % of profit |
|---|---|---|---|
| $10,000 | $1,413 | $118 | 14.1% |
| $20,000 | $2,826 | $235 | 14.1% |
| $30,000 | $4,239 | $353 | 14.1% |
| $40,000 | $5,652 | $471 | 14.1% |
| $50,000 | $7,065 | $589 | 14.1% |
| $75,000 | $10,597 | $883 | 14.1% |
| $100,000 | $14,130 | $1,177 | 14.1% |
| $150,000 | $21,194 | $1,766 | 14.1% |
| $200,000 | $28,234 | $2,353 | 14.1% |
Who has to pay self-employment tax
You owe it if your net earnings from self-employment are $400 or more (about $433 of profit). It applies whether you get a 1099-NEC, a 1099-K from an app, or are paid in cash: what matters is the income, not the form. That includes freelancers, independent contractors, rideshare and delivery drivers, and anyone running a side business as a sole proprietor.
Self-employment tax is not your only tax
Self-employment tax comes on top of federal income tax. The good news: you can deduct half of it ($3,532.39 in the example) when you figure your income tax. That lowers your income tax, not the self-employment tax itself.
Most states also tax income. Texas, Florida and a few others do not.
How and when to pay it
You report it on Schedule SE with your Form 1040. Because no one withholds it, the IRS expects you to pay during the year through quarterly estimated payments if you will owe $1,000 or more. Due dates for 2026 taxes:
| Payment | Covers income earned | Due date |
|---|---|---|
| 1st | January – March | April 15, 2026 |
| 2nd | April – May | June 15, 2026 |
| 3rd | June – August | September 15, 2026 |
| 4th | September – December | January 15, 2027 |
Use our quarterly estimated tax calculator to see exactly how much to pay by each date, including income tax, and how to catch up if you missed one.
How to lower your self-employment tax
- Track every business expense. Expenses reduce your net profit, and that is the main way to lower self-employment tax.
- Log your miles. For drivers it is usually the biggest deduction. In 2026 the IRS standard rate is 72.5¢ per mile from January to June and 76¢ per mile from July to December.
- Know what does not help here. Retirement contributions (SEP IRA, Solo 401(k)) and health insurance premiums lower your income tax, but not your self-employment tax.
Self-employed vs. W-2 employee
On the same $50,000, a W-2 employee has $3,825 (7.65%) withheld for Social Security and Medicare, and the employer quietly pays the other $3,825. As a self-employed worker you pay both halves yourself:$7,065. The 92.35% step and the deductible half soften the difference, but it is why a 1099 rate needs to be higher than a W-2 wage for the same take-home pay.
Checklist before you file
- Collect every 1099-NEC and 1099-K, plus a record of cash and app payments that did not come with a form.
- Add up your business expenses and keep receipts and your mileage log.
- Fill out Schedule C (profit or loss) first, then Schedule SE (self-employment tax).
- Claim the deductible half of the tax on Schedule 1.
- Subtract the quarterly estimated payments you already made during the year.
Frequently asked questions
What is the self-employment tax rate for 2026?
15.3% of your net earnings: 12.4% for Social Security on the first $184,500 and 2.9% for Medicare on all of it. If your earnings pass $200,000 ($250,000 if married filing jointly), an extra 0.9% Additional Medicare Tax applies to the amount above that.
Do I pay self-employment tax if I also have a W-2 job?
Yes, on your self-employment earnings. But your W-2 wages count toward the $184,500 Social Security limit, so if the two together pass it, you pay less Social Security on your side income. Add your W-2 wages in the optional section of the calculator.
Is self-employment tax the same as income tax?
No. Self-employment tax only pays for Social Security and Medicare. Federal income tax is separate and depends on your tax bracket, deductions and filing status. Most self-employed people owe both.
Do I owe self-employment tax if I made less than $400?
Not if your net earnings (profit × 92.35%) are under $400. You may still need to report the income on your tax return for income tax purposes.
Can I deduct self-employment tax?
Half of it. The deductible half is an adjustment to income on Schedule 1 (Form 1040). It lowers your income tax, not the self-employment tax itself.
Why does the calculator multiply my profit by 92.35%?
Employees don't pay tax on the half of Social Security and Medicare their employer pays. The 92.35% factor (100% − 7.65%) gives self-employed people the same treatment. It is line 4a of Schedule SE.
Does self-employment tax count toward my Social Security benefits?
Yes. The Social Security part of the tax earns you work credits and raises the earnings record used to calculate your future retirement and disability benefits. Underreporting income lowers taxes today but also lowers those benefits.