Profit after business expenses (Schedule C net)
Sets the 0.9% Additional Medicare threshold
Social Security wages from a job, to avoid double-counting
Disclaimer
This tool provides estimates for educational purposes only and is not tax advice. Results use 2026 federal figures and do not account for state taxes, credits, or your full situation. Consult a qualified tax professional before filing or making payments.
How this is calculated
Self-employment tax replaces the Social Security and Medicare taxes (FICA) that an employer would otherwise withhold. Because you are both employer and employee, you pay both halves. The calculation follows IRS Schedule SE:
- Net earnings = net business profit × 92.35% (0.9235).
- Social Security tax = 12.4% of net earnings, up to the 2026 wage base of $184,500 (minus any W-2 Social Security wages already taxed).
- Medicare tax = 2.9% of all net earnings (no cap).
- Additional Medicare tax = 0.9% on amounts above $200,000 (single / head of household), $250,000 (married filing jointly), or $125,000 (married filing separately).
- Total SE tax = Social Security + Medicare + Additional Medicare.
- One-half of the regular SE tax (the 15.3% portion) is deductible against income tax.
Sources
- SSA — Contribution and Benefit Base (2026 wage base $184,500)
- IRS — Self-Employment Tax (Social Security and Medicare Taxes)
- IRS — Topic No. 751, Social Security and Medicare Withholding Rates
Reviewed against 2026 figures · Last updated June 5, 2026
What is Self-Employment Tax Calculator?
A self-employment tax calculator estimates the Social Security and Medicare taxes (SE tax) that freelancers, independent contractors, gig workers, and small-business owners owe on their net business profit. For 2026, SE tax is 15.3% of net earnings — 12.4% for Social Security on the first $184,500 and 2.9% for Medicare with no cap — plus a 0.9% Additional Medicare Tax for high earners. The tool also shows the deductible half and a quarterly estimated payment so you know how much to set aside.
How to Use
- Enter your net business profit for the year (revenue minus business expenses).
- Choose your filing status — this sets the 0.9% Additional Medicare threshold.
- If you also have a W-2 job, enter your Social Security wages so the wage base is not double-counted.
- Click Calculate to see your Social Security, Medicare, and total SE tax.
- Use the deductible half for your income-tax return and the quarterly figure to plan estimated payments.
Why Use This Tool?
Tips & Best Practices
- Set aside 25%–30% of net income to cover SE tax plus income tax
- The 2026 Social Security wage base is $184,500; Medicare has no cap
- Net earnings are 92.35% of profit, so SE tax is slightly under 15.3% of profit
- Half of the regular SE tax is deductible against income tax
- 2026 estimated payments are due Apr 15, Jun 15, Sep 15, and Jan 15, 2027
- High earners owe an extra 0.9% Medicare tax above the filing-status threshold
Frequently Asked Questions
How much self-employment tax will I pay in 2026?
SE tax is 15.3% of your net self-employment earnings: 12.4% for Social Security on the first $184,500 of net earnings plus 2.9% for Medicare with no cap. Net earnings are 92.35% of profit. For example, $80,000 of net profit gives $73,880 of net earnings and about $11,303 of SE tax.
What is the 2026 Social Security wage base?
For 2026 the Social Security wage base is $184,500, up from $176,100 in 2025. The 12.4% Social Security portion only applies to net earnings up to this limit; the 2.9% Medicare portion has no cap.
How much should I set aside for 1099 taxes?
A common rule is to set aside 25%–30% of net self-employment income for SE tax plus federal income tax. Higher earners should lean toward 30%–35%. This calculator shows the SE tax portion; income tax is additional.
Can I deduct self-employment tax?
Yes. One-half of the regular self-employment tax is an above-the-line deduction that lowers your adjusted gross income. The 0.9% Additional Medicare Tax is not deductible, and the deduction does not reduce the SE tax itself.
When are 2026 quarterly estimated taxes due?
For 2026, estimated payments are due April 15, 2026, June 15, 2026, September 15, 2026, and January 15, 2027. If you expect to owe $1,000 or more, the IRS generally requires estimated payments to avoid a penalty.
What is the 0.9% Additional Medicare Tax?
High earners pay an extra 0.9% on wages and self-employment income above $200,000 (single), $250,000 (married filing jointly), or $125,000 (married filing separately). It is on top of the regular 2.9% Medicare portion and is not deductible.
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