Free Tool
Self-Employment Tax Calculator
Updated
If you freelance, drive, contract, or run a sole proprietorship, you owe self-employment tax on top of income tax. Estimate your 2026 SE tax — the Social Security and Medicare piece — and the deductible half you get back. It runs privately in your browser; nothing is saved or sent.
How it works: self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of your net profit. The Social Security part stops after $184,500 of earnings in 2026; Medicare has no cap. Enter your numbers below.
Estimated self-employment tax
$0
This is an estimate only of self-employment tax — it does not include your regular income tax, state tax, or credits. It uses 2026 figures ($184,500 Social Security wage base). Your exact tax depends on your full return. Confirm before relying on this.
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Self-employment tax catches a lot of 1099 and gig workers off guard — and unpaid SE tax turns into IRS debt fast. If you're already behind, we can set up an affordable payment plan, pursue penalty relief, or find the right resolution. Free, honest case review.
How self-employment tax works
When you work for an employer, you and the employer split Social Security and Medicare taxes — 7.65% each. When you're self-employed, you pay both halves yourself: that's the 15.3% self-employment tax (12.4% Social Security + 2.9% Medicare), reported on Schedule SE. You pay it on 92.35% of your net profit (the IRS lets you exclude the employer-equivalent portion first).
Two things soften it. First, the 12.4% Social Security portion only applies up to a cap — $184,500 of combined earnings in 2026 — so any W-2 wages you earned use up part of that cap. The 2.9% Medicare portion has no cap, and very high earners add another 0.9%. Second, you get to deduct half of the self-employment tax on your return, which lowers your income tax.
Because there's no employer withholding your taxes, the IRS expects you to pay as you go through quarterly estimated payments. Skip them and you face an underpayment penalty on top of the tax — one of the most common ways self-employed people fall into IRS debt. Setting money aside (a good rule of thumb is 25–30% of profit for federal tax combined) keeps you out of trouble.
Common questions
What is the self-employment tax rate for 2026?
Self-employment tax is 15.3% — 12.4% for Social Security plus 2.9% for Medicare. You pay it on 92.35% of your net self-employment profit. The 12.4% Social Security portion only applies to the first $184,500 of combined wages and self-employment earnings in 2026; the 2.9% Medicare portion has no cap.
Can I deduct half of my self-employment tax?
Yes. You can deduct one-half of your self-employment tax as an above-the-line deduction on your federal return. It lowers your income tax, though not the self-employment tax itself. This calculator shows that deductible half.
Do I owe self-employment tax on 1099 income?
Generally yes. If your net earnings from self-employment (1099 contract work, gig work, freelancing, or a sole proprietorship) are $400 or more for the year, you owe self-employment tax and must file Schedule SE. This is on top of any regular income tax.
Clarity Tax Relief is not affiliated with the IRS or any government agency. This calculator is general information, not individualized tax or legal advice; your exact tax depends on your full return, and no outcome is guaranteed.
More tools: IRS Payment Plan Calculator · Penalty & Interest Calculator · Offer in Compromise Calculator · IRS Help Center. Reviewed by Melissa Ly, Chief Tax Officer.
What is the self-employment tax rate, and what is it made of?
| Component | Rate | What it funds |
|---|---|---|
| Total self-employment tax | 15.3% | Social security and Medicare combined |
| Social security portion | 12.4% | Old-age, survivors, and disability insurance |
| Medicare portion | 2.9% | Hospital insurance |
Figures from IRS, Self-employment tax.
How to use this self-employment tax calculator
- Enter net earnings, meaning business income after deductible business expenses.
- Keep W-2 wages separate, because they are already taxed through payroll withholding.
- Use the result to size your quarterly estimated payments rather than waiting for the return.
- Remember the income tax on the same income is additional to this figure.
“The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).”
— IRS, Self-employment tax
The passage quoted above is from IRS, Self-employment tax.