Self-employment tax calculator 2026
Self-employment tax is 15.3% of 92.35% of your net profit. That's 12.4% Social Security (on up to $184,500 in 2026) plus 2.9% Medicare. On $60,000 of 1099 profit it comes to $8,477.73. Half of it ($4,238.87) is deductible.
Total estimated tax on this profit: $18,830 · quarterly payment ≈ $4,708
| Net earnings from self-employment (92.35% of profit) | $73,880.00 |
| Social Security portion (12.4%) | $9,161.12 |
| Medicare portion (2.9%) | $2,142.52 |
| Deductible half of SE tax | $5,651.82 |
| Federal income tax caused by the profit | $7,526.60 |
| Texas income tax on the profit | $0.00 |
How self-employment tax works
Employees split Social Security and Medicare with their employer. Each side pays 7.65%. When you work for yourself, you pay both halves through Schedule SE. That's the core of it.
The IRS tries to keep things even with employees. So it first multiplies net profit by 92.35%, which is 100% minus the 7.65% employer share. Then it applies 15.3%. After that, you deduct half of the SE tax on Schedule 1. That deduction lowers income tax. It does not lower the SE tax itself. Put another way, the half you deduct still gets paid in full.
A W-2 job changes the math. Your wages use up the $184,500 Social Security wage base first. So the 12.4% only applies to the room left. The 2.9% Medicare part has no cap. Income above $200,000 (single) or $250,000 (joint) also owes the 0.9% Additional Medicare Tax on Form 8959.
Worked example: $60,000 net profit, single, no other income
- Net earnings from self-employment: $60,000 × 92.35% = $55,410.00.
- Social Security: $55,410.00 × 12.4% = $6,870.84.
- Medicare: $55,410.00 × 2.9% = $1,606.89. SE tax = $8,477.73.
- Deduct half: $60,000 − $4,238.87 = $55,761 AGI; minus the $16,100 standard deduction = $39,661 taxable.
- Federal income tax on that: $4,511.34. Total federal: $12,989, about $3,247 per quarter.
Now compare a W-2 employee earning $60,000. That employee pays $4,590 in FICA and $5,020 in federal income tax. That's $3,379 less than the freelancer on the same $60,000. Stop on that number for a second. The difference is not an accident. The employer covers the other half of FICA, and the freelancer has no employer.
The Qualified Business Income deduction (up to 20% of qualified profit) can narrow that gap. It is not included here.
2026 quarterly estimated tax due dates
Do you expect to owe $1,000 or more when you file? Then the IRS expects estimated payments on Form 1040-ES:
| Income earned | Payment due |
|---|---|
| Q1 (Jan 1 – Mar 31, 2026) | April 15, 2026 |
| Q2 (Apr 1 – May 31, 2026) | June 15, 2026 |
| Q3 (Jun 1 – Aug 31, 2026) | September 15, 2026 |
| Q4 (Sep 1 – Dec 31, 2026) | January 15, 2027 |
The goal is to avoid an underpayment penalty. Pay at least 90% of your 2026 tax, or 100% of your 2025 tax. That second number becomes 110% if your 2025 AGI was over $150,000. Spread it evenly across the four dates. You can pay through IRS Direct Pay or your IRS online account.
Self-employment tax by net profit (2026, single)
| Net profit | SE tax | Federal income tax | Total | Per quarter | Share of profit |
|---|---|---|---|---|---|
| $20,000 | $2,826 | $249 | $3,075 | $769 | 15.373% |
| $40,000 | $5,652 | $2,281 | $7,933 | $1,983 | 19.832% |
| $60,000 | $8,478 | $4,511 | $12,989 | $3,247 | 21.648% |
| $80,000 | $11,304 | $7,527 | $18,830 | $4,708 | 23.538% |
| $120,000 | $16,955 | $15,705 | $32,660 | $8,165 | 27.217% |
| $200,000 | $28,234 | $33,346 | $61,580 | $15,395 | 30.79% |
These figures are before state income tax and the QBI deduction. At $200,000 the Social Security part stops growing. The reason: 92.35% of that profit passes the $184,500 wage base.
Frequently asked questions
What is the self-employment tax rate for 2026?
It's 15.3% of 92.35% of net self-employment earnings. That's 12.4% Social Security on up to $184,500 and 2.9% Medicare with no limit. In other words, about 14.13% of net profit until the cap.
Do I owe self-employment tax on a small side gig?
Only if net self-employment earnings (profit × 92.35%) are $400 or more for the year. Income tax is different. Income tax applies to any profit.
Is half of self-employment tax deductible?
Yes. You deduct half of SE tax as an adjustment to income on Schedule 1. That lowers your income tax. On $60,000 of profit the deduction is $4,238.87.
When are 2026 estimated taxes due?
April 15, 2026. June 15, 2026. September 15, 2026. And January 15, 2027. If a date falls on a weekend or legal holiday, the deadline moves to the next business day.
Does a W-2 job reduce my self-employment tax?
It can. W-2 wages count toward the $184,500 Social Security wage base first. Say your wages plus 92.35% of profit go over $184,500. Then you skip the 12.4% on the part above it. Enter your W-2 wages in the calculator to see the effect.
Sources
These estimates cover wages only. They use the standard deduction and no credits. Some things would lower your federal tax, and they are not here: the 2026 child tax credit ($2,200 per child) and the 2025–2028 deductions for tips (up to $25,000), qualified overtime (up to $12,500, or $25,000 married), seniors 65+ ($6,000 each) and car-loan interest (up to $10,000). If any of those apply to you, your real federal tax is lower.
- IRS Rev. Proc. 2025-32 (2026 brackets and standard deduction)
- SSA: 2026 Social Security wage base
- IRS Topic 560: Additional Medicare Tax
- IRS: One, Big, Beautiful Bill provisions
- Tax Foundation: State Income Tax Rates and Brackets, 2026
- IRS: Self-Employment Tax (Social Security and Medicare Taxes)
- IRS Form 1040-ES (2026)
Related calculators
Updated: October 2, 2026 · Sources and methodology