Self-Employment Tax Calculator
Calculate the 15.3% self-employment tax owed on your freelance, gig, or 1099 income — plus the deductible half and a quarterly payment estimate.
Your Self-Employment Tax
Tax Breakdown
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What Is Self-Employment Tax?
Self-employment tax (also called SECA tax) is how self-employed workers pay into Social Security and Medicare. Employees split this cost with their employer — each pays 7.65%. When you are self-employed, you are both the employee and the employer, so you pay the full 15.3%.
It is reported on Schedule SE and filed with your Form 1040. It is separate from your regular income tax — you owe both.
How the Calculation Works
- Start with net profit. This is your business income minus expenses (Schedule C net profit).
- Multiply by 92.35%. Only 92.35% of net earnings is subject to SE tax. This factor accounts for the employer-equivalent deduction.
- Apply Social Security tax (12.4%). This applies only up to the annual wage base — $184,500 in 2026. If you also have W-2 wages, those count toward the cap first.
- Apply Medicare tax (2.9%). There is no wage cap for Medicare.
- Add the 0.9% Additional Medicare Tax if your combined earnings exceed $200,000 (Single) or $250,000 (Joint).
The Deductible Half
You can deduct half of your self-employment tax as an adjustment to income on Form 1040. This deduction lowers your taxable income for income-tax purposes (though it does not reduce the SE tax itself). It represents the "employer half" of the tax — the portion an employer would normally pay on your behalf.
Quarterly Estimated Taxes
Because no one withholds tax from your self-employment income, the IRS expects you to pay as you go. If you will owe $1,000 or more for the year, you should make quarterly estimated tax payments (due mid-April, mid-June, mid-September, and mid-January). Underpaying can trigger penalties and interest.
The calculator above shows your total annual SE tax. Divide by 4 for a rough quarterly estimate — though income-tax estimates should be added on top.
How to Reduce Your SE Tax
- Deduct all legitimate business expenses. Every dollar of expense reduces net profit, which reduces both income tax and SE tax.
- Contribute to a SEP-IRA or Solo 401(k). These reduce income tax, though not SE tax directly.
- Claim the QBI deduction. The Qualified Business Income deduction can reduce income tax on pass-through income by up to 20%.
- Structure as an S-corp (in some cases). With an S-corp, part of your income can be taken as distributions rather than wages — but this requires careful analysis and a reasonable salary. Consult a professional.
Frequently Asked Questions
What is the self-employment tax rate for 2026?
The self-employment tax rate is 15.3%, made up of 12.4% for Social Security and 2.9% for Medicare. It applies to 92.35% of your net self-employment earnings. If you also have W-2 wages, the Social Security portion only applies until your combined earnings reach the wage base ($184,500 in 2026).
How is self-employment tax calculated?
First, take your net self-employment income (business profit). Multiply it by 92.35% to get your net earnings subject to SE tax. Then apply 15.3% — but Social Security tax (12.4%) only applies up to the annual wage base, and an extra 0.9% Medicare surtax applies above the high-income threshold.
Can I deduct part of my self-employment tax?
Yes. You can deduct half of the self-employment tax you paid as an adjustment to income on Form 1040. This deduction reduces your income tax (but not the SE tax itself). It reflects the employer-equivalent portion of the tax.
Do I owe self-employment tax if I only made a little money?
You owe self-employment tax if your net self-employment earnings are $400 or more. Below that threshold, you generally do not owe SE tax. Note that this is separate from income tax, which may still apply.
Do I need to pay estimated taxes quarterly?
If you expect to owe $1,000 or more in tax for the year after withholding and credits, the IRS requires quarterly estimated tax payments. Most self-employed workers should pay estimated taxes four times a year (April, June, September, January) to avoid underpayment penalties.
Estimates only, based on 2026 federal figures (IRS Schedule SE / Topic no. 751). Does not include federal income tax, state tax, or credits. Not tax advice.