Self-employment tax · Updated November 5, 2026

Self-employment tax calculator for 2026 and 2027

Self-employment tax is the Social Security and Medicare tax freelancers, 1099 contractors, gig workers and sole proprietors pay on their profit: 15.3% of 92.35% of net profit. Enter your numbers to see what you owe, what you can deduct and what to set aside each quarter.

Calculate my self-employment tax

Calculate your self-employment tax

Tax year

Self-employment tax for 2026

$8,478

14.1% of profit · about $2,119 a quarter

Net earnings (92.35% of profit)
$55,410
Social Security, 12.4%
$6,871
Medicare, 2.9%
$1,607
Deduction for half of it
−$4,239 from income

Self-employment tax only, not income tax. Add income tax for your estimated payments. The deduction lowers income tax, not this tax. Estimate, not tax advice.

How self-employment tax is calculated

  1. Start with your net profit: business income minus business expenses (Schedule C, line 31).
  2. Multiply by 92.35% to get net earnings from self-employment. Under $400, there is no tax.
  3. Apply 12.4% for Social Security to net earnings up to the wage base, less any W-2 wages: $184,500 for 2026, $192,300 for 2027.
  4. Apply 2.9% for Medicare to all net earnings.
  5. Add 0.9% Additional Medicare Tax on earnings above $200,000 ($250,000 joint, $125,000 married filing separately).
  6. Deduct half of the self-employment tax (without the 0.9%) when you figure your adjusted gross income.

Example: a single freelancer with $60,000 of profit in 2026 has $55,410 of net earnings. Social Security tax is $6,870.84 and Medicare tax is $1,606.89, so self-employment tax is $8,477.73, about $2,119 a quarter. Half of it, $4,238.87, comes off income before income tax is figured.

Self-employment tax rates and limits

Rates from IRS Topic 554 and Topic 560; wage base from the Social Security Administration. Maximum is 12.4% of the wage base.
Item20262027
Social Security part12.4%12.4%
Medicare part2.9%, no cap2.9%, no cap
Social Security wage base$184,500$192,300
Most Social Security tax on self-employment$22,878$23,845.20
Profit at which the cap is reached (about)$199,783$208,230
Additional Medicare Tax0.9% above $200,000*0.9% above $200,000*
No tax if net earnings are under$400$400

*Single, head of household and surviving spouse. $250,000 on a joint return, $125,000 married filing separately. Not adjusted for inflation.

If you also have a W-2 job

Your employer already withheld Social Security tax on your wages, and those wages use up the wage base first. With $150,000 of W-2 wages and $60,000 of profit in 2026, only $34,500 of net earnings is left under the $184,500 base, so self-employment tax is $5,884.89 instead of $8,477.73. Medicare tax still applies to every dollar, and because wages and earnings together pass $200,000, $48.69 of Additional Medicare Tax is added on Form 8959. See how FICA works on a paycheck.

What lowers self-employment tax, and what does not

  • Business expenses do. Anything that lowers Schedule C profit lowers this tax too: mileage, supplies, a home office, and equipment written off under Section 179.
  • An S corporation can. An S-Corp owner pays Social Security and Medicare tax on a reasonable salary, not on the profit paid out as distributions. It adds payroll and a separate return, so it pays off only above a certain profit. See Form 2553.
  • Retirement contributions, the standard deduction and the QBI deduction do not. They lower income tax only.

Paying it during the year

No one withholds self-employment tax, so it is paid with income tax through quarterly estimated payments. For 2026 the last one is due January 15, 2027. See the estimated tax due dates and how to work out the full payment, income tax included.

Questions

What is the self-employment tax rate for 2026?

15.3% of net earnings, which are 92.35% of your net profit: 12.4% for Social Security on earnings up to $184,500 and 2.9% for Medicare on all of it. A 0.9% Additional Medicare Tax applies above $200,000 ($250,000 joint, $125,000 married filing separately).

How much self-employment tax do I pay on $60,000?

About $8,478: $60,000 × 92.35% = $55,410, times 15.3%. Half of it, $4,239, is deducted when you figure your income tax.

Do I pay self-employment tax if I also have a W-2 job?

Yes, on your self-employment profit. Your W-2 wages count toward the Social Security wage base first, so if wages and net earnings together pass the base, the 12.4% part stops there. The 2.9% Medicare part has no cap.

When do I not owe self-employment tax?

When net earnings from self-employment, 92.35% of your profit, are under $400 for the year.

Is self-employment tax included in my estimated tax payments?

Yes. Quarterly estimated payments cover income tax and self-employment tax together. This calculator shows only the self-employment part.

Do retirement contributions lower self-employment tax?

No. SEP and solo 401(k) contributions lower income tax but not self-employment tax, which is figured on your Schedule C profit. Business expenses on Schedule C lower both.

Is an S-Corp worth it for you?

Self-employment tax is often the biggest line on a business owner’s return. Our tax planning assessment compares staying a sole proprietor or LLC with an S-Corp salary on your own numbers. $195, in person in Naperville, IL, by phone or by Zoom.

Tax planning

Where these rules come from

Related

USTAXX prepares tax returns and offers tax planning. We are not a CPA firm and do not represent clients before the IRS. This page is general information, not tax advice for your situation.

Self-Employment Tax Calculator for 2026 and 2027 | USTAXX