Self-Employment Tax Calculator 2026
Self-employment tax for 2026 (12.4% Social Security to the $184,500 wage base, 2.9% Medicare, 0.9% additional), the deductible half, federal income tax with the QBI deduction, and the monthly and quarterly amounts to set aside.
| Net earnings subject to SE tax (92.35%) | — |
|---|---|
| Social Security 12.4% | — |
| Medicare 2.9% | — |
| Additional Medicare 0.9% | — |
| Deductible half of SE tax | — |
| Federal income tax on the profit | — |
| Total federal tax / effective rate | — |
| Set aside per month | — |
| Quarterly estimated payment (federal) | — |
In short
Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of net profit, with Social Security capped at $184,500 of 2026 earnings and 0.9% additional Medicare above $200,000 / $250,000; half of it is deductible. On $90,000 of profit the SE tax is about $12,717, and with federal income tax after the standard and QBI deductions the total federal bill is about $19,300 — 21.5% of profit.
Who this is for: US freelancers, gig workers and sole proprietors budgeting for SE and income tax.
How self-employment tax works
- Rate: 15.3% = 12.4% Social Security + 2.9% Medicare, applied to 92.35% of net profit (the factor mimics the employer-half deduction). Social Security stops at $184,500 of combined wages and net earnings in 2026; Medicare has no cap and adds 0.9% above $200,000 / $250,000.
- Deduction: half of SE tax is an above-the-line deduction — it lowers income tax and AGI, not the SE tax itself.
- Income tax on top: profit minus half SE tax, minus the standard deduction and (usually) the 20% qualified business income deduction, through the 2026 brackets.
- Threshold: SE tax applies once net earnings reach $400.
- Reduce it legitimately: deduct every business expense (it reduces profit, so both taxes), fund a SEP or solo 401(k) (income tax only), and consider an S-corp election above roughly $80,000–100,000 of profit, where paying yourself a reasonable salary and taking the rest as distributions avoids SE tax on the distributions.
See also: Quarterly Estimated Tax Calculator 2026, 1099 vs W-2 Calculator.
Assumptions
- Net earnings = profit × 92.35%; Social Security 12.4% up to the $184,500 wage base less W-2 wages; Medicare 2.9%; additional 0.9% above the threshold.
- Half of SE tax deducted; QBI deduction = 20% of the lesser of qualified income and taxable income before QBI (no phase-out modelled).
- Income tax from the 2026 brackets on AGI − standard deduction − QBI; monthly and quarterly = total ÷ 12 and ÷ 4.
Worked example
Net earnings $83,115 → Social Security $10,306 + Medicare $2,410 = $12,717 SE tax; half ($6,358) deductible. AGI $83,642; after the $16,100 standard deduction and a $13,508 QBI deduction, taxable income $54,033 → income tax $6,599. Total federal $19,316 — 21.5% of profit, about $1,610 a month or $4,830 a quarter.
Frequently asked questions
What is the self-employment tax rate for 2026?
15.3% on 92.35% of net profit: 12.4% Social Security up to $184,500 of earnings and 2.9% Medicare without limit, plus 0.9% additional Medicare above $200,000 (single) or $250,000 (joint).
Do I pay self-employment tax if I also have a W-2 job?
Yes on the self-employment profit, but your W-2 wages use up the Social Security wage base first, so a high salary can eliminate the 12.4% part; Medicare always applies.
Is half of self-employment tax deductible?
Yes — the employer-equivalent half is deducted on Schedule 1, reducing AGI and income tax.
How much should a freelancer set aside for taxes?
Typically 25–30% of profit for federal SE and income tax at middle incomes, plus state tax; the calculator gives the exact monthly and quarterly amounts.
Is the 20% QBI deduction automatic?
It applies to most sole proprietors and pass-through owners below the income thresholds; specified service businesses phase out above them. Ask a preparer if your taxable income is well above $200,000.
Does an S-corp avoid self-employment tax?
Partly: salary is subject to payroll tax, distributions are not, so above roughly $80,000–100,000 of profit the saving can exceed the extra payroll and filing costs.
People also ask
What is the self-employment tax rate?
15.3% on 92.35% of net earnings — 12.4% Social Security up to the $184,500 wage base and 2.9% Medicare — plus 0.9% additional Medicare above $200,000.
Can I deduct self-employment tax?
Half of it is deductible as an adjustment to income on Form 1040, reducing income tax but not the SE tax itself.
Do I need to pay quarterly estimated taxes?
Yes if you expect to owe $1,000 or more; payments are due 15 April, 15 June, 15 September and 15 January.
Does the QBI deduction apply?
Yes — up to 20% of qualified business income is deductible for most sole proprietors, subject to income thresholds.
Is an S-corp cheaper?
It can be once profit exceeds roughly $80,000–$100,000, by paying a reasonable salary and taking the rest as distributions free of SE tax; see the S-corp vs LLC calculator.
What counts as net earnings?
Gross receipts less ordinary business expenses on Schedule C; the 92.35% factor mirrors the employer-half deduction.
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