Self-Employment Tax Calculator

Self-Employment Tax Calculator

How to Use the Self-Employment Tax Calculator

1. 1

   Choose your filing status

   Pick Single, Married filing jointly or Head of household. Married filing separately is not supported.

2. 2

   Enter your net profit

   Type your business income minus business expenses for the year, the figure on Schedule C line 31. If you have more than one business, add the profits together.

3. 3

   Add W-2 wages if you have a job too

   Enter Social Security wages from any employer (W-2 box 3). They use up part of the Social Security wage base, which can lower your SE tax.

4. 4

   Read the results

   Results update as you type: SE tax split into Social Security and Medicare, the deductible half, the income tax estimate with its bracket table, and the share of profit to set aside.

How self-employment tax is calculated

Employees split Social Security and Medicare with their employer. When you work for yourself you pay both halves, which is why the self-employment tax rate is 15.3%: 12.4% for Social Security and 2.9% for Medicare. It is figured on Schedule SE and added to your income tax on Form 1040.

You don't pay it on your full profit. First the profit is multiplied by 92.35%, which mirrors the fact that an employer's half of FICA is not part of an employee's wages. The Social Security part stops at the 2026 wage base of $184,500 (set by the SSA), and any W-2 wages count toward that cap first. The Medicare part has no cap.

Half of the SE tax is an adjustment to income on Schedule 1, so it lowers your income tax but not the SE tax itself. If your net SE earnings are under $400, you owe no SE tax. Above $200,000 of combined wages and SE earnings ($250,000 married filing jointly), a separate 0.9% Additional Medicare Tax applies on Form 8959.

Net SE earnings = net profit × 92.35%
Social Security = 12.4% × lesser of (net SE earnings) or ($184,500 − W-2 wages)
Medicare = 2.9% × net SE earnings
SE tax = Social Security + Medicare; deductible half = SE tax ÷ 2
Taxable income = profit + wages − half of SE tax − standard deduction − QBI deduction

Worked example: $85,000 of freelance profit

A single filer with $85,000 of net profit and no other job, for the 2026 tax year:

• Net SE earnings: $85,000 × 92.35% = $78,498.
• Social Security: $78,498 × 12.4% = $9,734. Medicare: $78,498 × 2.9% = $2,276. SE tax: $12,010.
• Deductible half: $6,005, so adjusted gross income is $85,000 − $6,005 = $78,995.
• Minus the $16,100 standard deduction leaves $62,895. The QBI deduction is 20% of the lesser of qualified business income ($78,995) or that $62,895, so $12,579. Taxable income: $50,316.
• Income tax: 10% of the first $12,400 ($1,240) plus 12% of the next $37,916 ($4,550) = $5,790. The marginal bracket is 12%; the effective income tax rate is 6.8% of the $85,000.
• Total federal tax: $5,790 + $12,010 = $17,800, or about 20.9% of profit to set aside.

Self-employment tax at common profit levels (2026, single)

Single filer, no W-2 wages, standard deduction, QBI deduction where taxable income is under the $201,775 threshold. Income tax is rounded to the dollar.

When you also have a W-2 job

Social Security tax applies only up to $184,500 of combined earnings for 2026. Your W-2 wages fill that room first, and only what is left is available for SE earnings. Medicare applies to everything.

Example: $160,000 of W-2 wages plus $50,000 of side-business profit, single. Net SE earnings are $46,175, but only $24,500 of wage-base room remains, so Social Security is $3,038 and Medicare is $1,339, for SE tax of $4,377. Without the job, the same profit would carry $7,065 of SE tax. Combined wages and SE earnings pass $200,000, so about $56 of Additional Medicare Tax is also due.

Legal ways to lower self-employment tax

SE tax is charged on net profit, so legitimate business deductions lower it along with your income tax. Tax avoidance through the rules below is legal; hiding income or claiming personal costs as business expenses is not. Keep receipts and records for everything you deduct.

• Deduct every ordinary and necessary business expense: software, equipment, supplies, business mileage or vehicle costs, professional fees, advertising and the business share of your phone and internet.
• Home office deduction: if part of your home is used regularly and exclusively for the business, deduct it on Form 8829 or with the simplified per-square-foot method. It lowers both SE tax and income tax.
• Equipment: Section 179 lets you expense qualifying equipment in the year you buy it (up to $2,560,000 for 2026) instead of depreciating it. The Section 179 calculator shows the effect.
• Retirement plans: a Solo 401(k) lets you defer up to $24,500 as the employee for 2026 ($8,000 more if you are 50 or older), plus an employer contribution; a SEP-IRA takes employer contributions only. These cut income tax, not SE tax.
• Self-employed health insurance deduction: premiums for you and your family can be deducted on Schedule 1 if you aren't eligible for an employer-subsidized plan. An HSA with a high-deductible plan allows $4,400 self-only or $8,750 family for 2026. Both reduce income tax, not SE tax.
• Hire your children properly: a sole proprietor's wages to their own child under 18 are exempt from Social Security and Medicare, are deductible to the business, and can be free of federal income tax up to the child's $16,100 standard deduction. The work must be real, the pay reasonable and the payroll documented.
• The QBI deduction of up to 20% of qualified business income is claimed on your return automatically if you qualify; it lowers income tax only.

What this estimate leaves out

The calculator uses the 2026 figures from IRS Rev. Proc. 2025-32 and the SSA, and assumes the standard deduction and ordinary income only. It does not model tax credits such as the child tax credit or earned income credit, itemized deductions, retirement or health insurance deductions, capital gains, the QBI deduction above the threshold, the optional methods on Schedule SE, church employee income or state and local tax. Tax withheld from a W-2 job is not subtracted.

Treat the result as a planning estimate, not tax advice. For filing, or if your situation is more involved, work with a CPA or enrolled agent.

Features

• SE tax on 92.35% of net profit, split into Social Security and Medicare
• W-2 wages reduce the Social Security wage base room
• Deductible half of SE tax and Additional Medicare Tax when it applies
• Rough federal income tax with the standard deduction and QBI deduction, bracket by bracket
• Effective and marginal rates plus how much of your profit to set aside

Frequently Asked Questions