Everyday ToolboxSelf-Employment Tax Calculator 2026
Freelancer, contractor, or gig worker with 1099 income? Self-employment tax is the Social Security and Medicare tax you pay on your net profit — usually 15.3%. Enter your numbers below to see exactly how much you owe, the half you can deduct, and what to set aside each quarter.
2026 figures: Social Security wage base $184,500 at 12.4%; Medicare 2.9% on all self-employment earnings; additional 0.9% Medicare above $200,000 (single / head of household), $250,000 (married filing jointly), or $125,000 (married filing separately). Self-employment tax is a federal tax — it does not include federal income tax or state tax. This calculator is an estimate, not tax advice.
Frequently Asked Questions
How much is self-employment tax?
For most freelancers it is 15.3% of 92.35% of net profit — 12.4% Social Security plus 2.9% Medicare. On $100,000 of net profit, that works out to about $14,130 of self-employment tax. High earners also pay an additional 0.9% Medicare tax above the thresholds listed above.
Why 92.35%? What is the 92.35% rule?
Self-employment tax applies to 92.35% of your net earnings, not 100%. The 7.65% haircut mirrors the employer share of payroll tax that a W-2 employee never sees — it keeps the self-employed on roughly the same footing as employees, whose employer pays half.
Is there a Social Security wage base limit?
Yes. In 2026, Social Security tax (12.4%) only applies to the first $184,500 of combined wages and self-employment earnings. Medicare tax (2.9%) has no cap. If you also have W-2 wages, they count against the same $184,500 cap first — enter them above so the calculator does not overstate your Social Security tax.
Do I owe self-employment tax on less than $400?
No. If your net self-employment earnings are under $400 for the year, no self-employment tax is due. You still report the income, but the SE tax itself is zero.
When are quarterly estimated payments due?
Estimated tax payments are due April 15, June 15, September 15, and January 15 of the following year. Set aside roughly one quarter of your expected annual self-employment tax (plus income tax) at each date to avoid an underpayment penalty.
Can I deduct half of my self-employment tax?
Yes. One half of your self-employment tax is deductible from your income when computing adjusted gross income — it is the equivalent of the employer share. It reduces your income tax, but it does not reduce the self-employment tax itself.
Does this cover 1099-NEC and 1099-K income?
Yes. The calculator covers net profit from freelance and gig work regardless of which 1099 form reported it — 1099-NEC (nonemployee compensation), 1099-K (payment card / third-party network), or no form at all. What matters is net profit after expenses, not the form.
What about state tax?
Self-employment tax is federal only. Your state taxes your net profit as income under its own rules — for example, New Jersey taxes net profit as income but has no separate self-employment tax. Check your state, or use our income tax calculator for the federal income tax side.
Does an S-corp save self-employment tax?
Sometimes. An S-corp owner pays payroll tax only on a reasonable salary; remaining business profit distributed as a dividend is not subject to self-employment tax. But S-corps add payroll, bookkeeping, and filing costs, and the IRS requires the salary to be reasonable. Run the numbers before switching — it is not a free win for everyone.
Is this calculator tax advice?
No. It is an estimate based on the published 2026 rates and thresholds. For decisions like entity choice, retirement contributions, or a year with mixed W-2 and 1099 income, talk to a tax professional.