Self-Employment Tax Calculator 2026 rates
Your 2026 self-employment tax
$7,064.78
14.1% of your profit · you can deduct $3,532 (half) from your income
| Net self-employment profit | $50,000.00 |
|---|---|
| × 92.35% = net earnings from self-employment | $46,175.00 |
| Social Security 12.4% | $5,725.70 |
| Medicare 2.9% | $1,339.08 |
| Self-employment tax | $7,064.78 |
- Federal income tax (estimate): $2,667
- Total federal tax: $9,732
- Quarterly payment: $2,433
- QBI deduction used: $6,074
Estimate for tax year 2026. Self-employment tax is due when net earnings reach $400. Income tax uses the standard deduction and the 20% qualified business income deduction. For state tax and expenses, use the 1099 tax calculator.
How self-employment tax is calculated (Schedule SE)
| Step | Calculation | $50,000 profit |
|---|---|---|
| 1. Net profit | Business income − business expenses (Schedule C) | $50,000 |
| 2. Net earnings from self-employment | Net profit × 92.35% | $46,175 |
| 3. Social Security | 12.4% × net earnings, up to $184,500 (minus any W-2 wages) | $5,725.70 |
| 4. Medicare | 2.9% × all net earnings | $1,339.08 |
| 5. Self-employment tax | Step 3 + Step 4 | $7,064.78 |
| 6. Deduction | Half of the SE tax comes off your income | $3,532.39 |
Why 92.35%? An employer doesn't pay payroll tax on its own share of the tax. Multiplying by 92.35% (100% − 7.65%) gives the self-employed the same break.
2026 self-employment tax rates and limits
| Item | 2026 |
|---|---|
| Social Security rate | 12.4% |
| Social Security wage base (combined with W-2 wages) | $184,500 |
| Medicare rate | 2.9% (no limit) |
| Additional Medicare tax | 0.9% above $200,000 single / $250,000 married filing jointly / $125,000 married filing separately |
| Minimum to owe SE tax | $400 of net earnings |
| Deduction for half of SE tax | Yes (Schedule 1), not including the 0.9% additional Medicare tax |
Sources: Social Security Administration (2026 wage base); IRS Schedule SE and Form 8959 instructions.
Self-employment tax by profit (2026)
Single filer, no other job, standard deduction, 20% qualified business income deduction. "Total federal" adds income tax.
| Net profit | SE tax | Half-SE deduction | Federal income tax | Total federal | Share of profit |
|---|---|---|---|---|---|
| $10,000 | $1,413 | $706 | $0 | $1,413 | 14.1% |
| $25,000 | $3,532 | $1,766 | $571 | $4,103 | 16.4% |
| $40,000 | $5,652 | $2,826 | $1,775 | $7,427 | 18.6% |
| $50,000 | $7,065 | $3,532 | $2,667 | $9,732 | 19.5% |
| $75,000 | $10,597 | $5,299 | $4,898 | $15,495 | 20.7% |
| $100,000 | $14,130 | $7,065 | $8,235 | $22,365 | 22.4% |
| $150,000 | $21,194 | $10,597 | $16,413 | $37,608 | 25.1% |
| $200,000 | $28,234 | $14,117 | $25,196 | $53,431 | 26.7% |
State income tax is extra. To include it, plus expenses and quarterly payments, use the 1099 tax calculator.
Self-employment tax vs. FICA on a W-2 job
On a W-2 job you pay 7.65% (6.2% Social Security + 1.45% Medicare) and your employer pays another 7.65%. When you work for yourself, you are both, so you pay the full 15.3%. That is why freelancers often feel they pay "double" Social Security and Medicare. The half-SE-tax deduction and the 92.35% rule soften it a little.
How to lower self-employment tax
- Track every business expense. SE tax is on profit, so each $100 of expenses saves about $14 of SE tax, plus income tax. Common ones: equipment and software, a home office, business mileage, phone and internet (business share), professional fees.
- Know what doesn't help: SEP-IRA or solo 401(k) contributions and self-employed health insurance premiums lower your income tax, but not your self-employment tax.
- S corporation election (for higher profits): owners pay payroll tax only on a reasonable salary, not on all profit. It adds payroll costs and paperwork, so talk to a tax professional first.
When and how to pay
Self-employment tax isn't withheld from client payments, so you pay it through quarterly estimated taxes (Form 1040-ES) together with your income tax. For the 2026 tax year the due dates are April 15, June 15 and September 15, 2026, and January 15, 2027. You report it on Schedule SE with your Form 1040.
Who pays self-employment tax?
Anyone with $400 or more of net earnings from self-employment: freelancers and independent contractors paid on a 1099, gig workers (rideshare, delivery), sole proprietors, single-member LLC owners and partners in a business. Church employees and some other groups have special rules.
Frequently asked questions
What is the self-employment tax rate for 2026?
15.3%: 12.4% for Social Security on net earnings up to $184,500 and 2.9% for Medicare on all net earnings. It applies to 92.35% of your net profit, so the effective rate on profit is about 14.1%. An extra 0.9% Medicare tax applies above $200,000 ($250,000 married filing jointly).
How much self-employment tax will I pay on $50,000?
About $7,065 in 2026: $50,000 × 92.35% = $46,175 of net earnings, × 15.3% = $7,064.78. You can deduct half of it ($3,532) from your income when you figure your income tax.
Do I have to pay self-employment tax if I made less than $400?
No. You owe self-employment tax only if your net earnings from self-employment (92.35% of profit) are $400 or more. You may still owe income tax on the profit.
Is self-employment tax the same as income tax?
No. Self-employment tax is Social Security and Medicare, the same taxes an employee and employer split on a W-2 job. Income tax is separate and is figured on your taxable income after deductions. Self-employed people pay both.
How can I lower my self-employment tax?
Self-employment tax is based on net profit, so deducting every legitimate business expense (equipment, software, a home office, business mileage) lowers it. Retirement contributions and health insurance premiums lower income tax but not self-employment tax.
Does my W-2 job reduce my self-employment tax?
Only if your total pay passes the Social Security wage base. Social Security tax stops at $184,500 of combined W-2 wages and self-employment earnings in 2026, so W-2 wages use up part of that limit. Medicare tax has no limit.