Self-Employment Tax Calculator 2026

What self-employment tax is

Employees split Social Security and Medicare with their employer (7.65% each). When you work for yourself you pay both halves – 15.3% – through Schedule SE. The tax applies to 92.35% of your net profit, which mirrors the employer half being deductible for a business.

Part	Rate	Applies to
Social Security	12.4%	Net earnings up to $184,500 (2026), minus any W-2 wages
Medicare	2.9%	All net earnings
Additional Medicare	0.9%	Above $200,000 single / $250,000 joint

Worked example: $80,000 of 1099 income, $10,000 of expenses

Single filer, $70,000 net profit, no other job

Net earnings are $70,000 × 92.35% = $64,645. Self-employment tax is $9,890.69; half of it is deductible, and the income tax on the profit is $5,626.56. Four quarterly payments of $3,879.31 cover the bill.

Self-employment tax$9,890.6915.3% on 92.35% of profit

Total federal tax on the profit: $15,517.25
Quarterly estimated payment: $3,879.31Apr 15, Jun 15, Sep 15, Jan 15
Profit kept after federal tax: $54,483

Net profit (Schedule C): $70,000.00
Net earnings from self-employment (× 92.35%): $64,645.00
Social Security (12.4%): $8,015.98
Medicare (2.9%): $1,874.71
Self-employment tax: $9,890.69
Deduction for half of SE tax: −$4,945.34
Federal income tax on the profit: $5,626.56
Total federal tax on the profit: $15,517.25

Lowering the bill legally

Deduct every business expense – home office, equipment, software, mileage at the IRS standard rate, health insurance premiums (as an adjustment), part of your phone and internet.
Retirement contributions – a SEP-IRA or solo 401(k) reduces income tax (not SE tax).
Qualified business income deduction – up to 20% of qualified profit for many sole proprietors; it reduces income tax only and is not modelled here.

If you also have a job

W-2 wages count toward the Social Security wage base first. Once wages reach $184,500, your self-employment profit pays only the 2.9% Medicare part. Enter your wages in the calculator to see the effect.

Questions people ask

How much is self-employment tax in 2026?

15.3% of 92.35% of your net profit – 12.4% for Social Security up to the $184,500 wage base and 2.9% for Medicare with no cap, plus 0.9% Additional Medicare above $200,000 ($250,000 joint). On $70,000 of profit it is $9,890.69.

How much should I set aside for taxes as a 1099 contractor?

Work out your own figure – it depends on your profit, deductions and state. With $70,000 of profit and no other income, a single filer owes about $15,517 of federal tax for 2026 (roughly 22%), made up of $9,890.69 of self-employment tax and $5,626.56 of income tax, before state tax.

Do I have to pay quarterly estimated taxes?

Yes, if you expect to owe $1,000 or more when you file. Payments are due April 15, June 15 and September 15, 2026 and January 15, 2027. Paying 100% of last year's tax (110% if your AGI was over $150,000) avoids the underpayment penalty.

Is self-employment tax deductible?

Half of it is. The deduction lowers your adjusted gross income and therefore your income tax, but not the self-employment tax itself.

This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency. Read the full disclaimer.