Self-Employment Tax Calculator
Calculate your self-employment tax (Social Security and Medicare) for 2025-2026. Perfect for freelancers, independent contractors, and small business owners.
Total Self-Employment Tax
$8,478
for 2025 tax year
Tax Breakdown
Tax Deduction
You can deduct 50% of your SE tax ($4,239) from your income taxes.
Important Note
Self-employment tax is separate from income tax. You'll need to pay both self-employment tax and income tax on your net earnings.
What is Self-Employment Tax?
Social Security
12.4% up to $176,100 wage base (2025)
Medicare
2.9% on all net earnings
Additional Medicare
0.9% on income over $200,000
Who Needs to Pay Self-Employment Tax?
Freelancers & Contractors
If you earn $400+ from freelance work or contract work (1099 income)
Small Business Owners
Sole proprietors, single-member LLC owners, and partners in partnerships
Gig Economy Workers
Uber/Lyft drivers, delivery drivers, and other gig workers
How to Calculate Self-Employment Tax in 2026
Self-employment tax funds Social Security and Medicare for anyone who works for themselves. The combined SE tax rate is 15.3%, split into two parts: 12.4% for Social Security and 2.9% for Medicare. Unlike W-2 employees who split these taxes with their employer, self-employed individuals pay both halves.
The IRS does not apply the 15.3% rate directly to your gross income. Instead, you first calculate net earnings (gross self-employment income minus business expenses), then multiply by 92.35% (the taxable portion). This 7.65% reduction mirrors the employer-equivalent share that W-2 workers never see on their paystubs.
| Step | Calculation | Example ($100,000 net) |
|---|---|---|
| 1. Net self-employment income | Gross income − business expenses | $100,000 |
| 2. Taxable SE earnings | Net income × 92.35% | $92,350 |
| 3. Social Security tax | Taxable earnings × 12.4% (up to $176,100) | $11,451 |
| 4. Medicare tax | Taxable earnings × 2.9% | $2,678 |
| 5. Total SE tax | Social Security + Medicare | $14,130 |
| 6. Deductible portion | Total SE tax × 50% | $7,065 |
The Social Security wage base for 2026 is $176,100. Net SE earnings above that threshold are exempt from the 12.4% Social Security portion but still owe the 2.9% Medicare tax. High earners also face an Additional Medicare Tax of 0.9% on combined earnings above $200,000 (single) or $250,000 (married filing jointly).
SE Tax Deduction and Filing Requirements
The IRS allows you to deduct 50% of your self-employment tax as an adjustment to income on Form 1040, line 15. This is an above-the-line deduction, meaning you claim it whether you itemize or take the standard deduction ($15,700 for single filers in 2026). On $14,130 of SE tax, the deduction saves $7,065 from your adjusted gross income.
You must file Schedule SE (Form 1040) if your net self-employment earnings reach $400 or more in a tax year. This threshold applies per person, not per business. Schedule SE calculates your total SE tax liability, which then transfers to your Form 1040.
Self-employed taxpayers must also make quarterly estimated tax payments using Form 1040-ES. The IRS expects payments by April 15, June 15, September 15, and January 15 of the following year. Missing these deadlines triggers an underpayment penalty calculated at the federal short-term rate plus 3 percentage points. Use our quarterly tax calculator to estimate each payment.
Self-Employment Tax vs. Income Tax
Self-employment tax and federal income tax are two separate obligations. SE tax is a flat-rate payroll tax (15.3%) that funds Social Security and Medicare. Federal income tax uses progressive brackets ranging from 10% to 37% based on your taxable income and filing status.
A freelancer with $80,000 in net earnings pays roughly $11,304 in SE tax plus federal income tax on the remaining taxable amount after deductions. The 50% SE tax deduction, the standard deduction, and any itemized deductions reduce the income tax portion but do not reduce SE tax itself.
The Qualified Business Income (QBI) deduction under Section 199A lets eligible self-employed filers deduct up to 20% of qualified business income from their federal income tax. This deduction was made permanent by the One Big Beautiful Bill Act of 2025. It applies to income tax only and does not reduce SE tax. Calculate your potential savings with the QBI deduction calculator.
Who Must Pay Self-Employment Tax
You owe SE tax if you earn $400 or more in net self-employment income during the tax year. This includes sole proprietors, single-member LLC owners, independent contractors receiving 1099-NEC forms, freelancers, gig economy workers, and general partners in a partnership. S-Corp shareholders who receive reasonable salary already pay FICA through payroll and owe SE tax only on additional pass-through income in specific circumstances.
If you also have W-2 wages, your employer already withholds 6.2% for Social Security and 1.45% for Medicare. The Social Security tax cap of $176,100 in 2026 applies to your combined W-2 and SE earnings. For example, if your W-2 wages are $120,000, only the first $56,100 of your SE taxable income is subject to the 12.4% Social Security rate. Track your combined 1099 and W-2 tax liability with our 1099 tax calculator.
Related Calculators
Official References
This calculator uses current IRS self-employment tax rates:
- IRS Self-Employment Tax
Official IRS guidance on Social Security and Medicare taxes
- IRS Schedule SE Form
Form for calculating self-employment tax
- Social Security Wage Base
Annual Social Security contribution and benefit base
This calculator provides estimates. Your actual tax liability may vary. Consult a tax professional for personalized advice. Tax rates and wage base limits accurate as of January 12, 2026.