United States Tax

Self-Employment Tax Calculator (2026)

Estimate US self-employment tax from net business profit before income tax.

United States Calculator

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Self-Employment Tax

$12,717

Based on your selected self-employment tax assumptions. Try different sliders to compare scenarios.

Social Security Portion

$10,306

Medicare Portion

$2,410

Estimated Total Tax

$32,517

These are planning estimates, not tax, legal or investment advice. Country rules, lender policies and tax rates can change.

How to Use the Self-Employment Tax

1

Enter net business profit

Input Schedule C net income (gross 1099 revenue minus allowable business expenses).

2

Apply the 92.35% statutory rule

Self-employment tax is automatically applied to 92.35% of your net business profit.

3

Set income tax reserve rate

Enter expected federal and state income tax bracket to calculate total quarterly tax reserve.

Formula & Calculation Methodology

Self-Employment Tax = Social Security Tax + Medicare Tax on 92.35% of Net Profit

This calculator uses standard United States financial formulas, IRS thresholds, and amortization schedules. All results compute instantly in your browser with zero data stored or transmitted.

Calculation Examples & Scenarios

$90,000 1099 Freelance Web Developer Net Profit

$90,000 net Schedule C profit, 22% estimated income tax reserve rate.

Self-Employment Tax: $12,717 (15.3% on $83,115) | Income Tax Reserve: $19,800 | Total Tax Reserve: $32,517 (~$8,129/quarter).

$150,000 Independent Consultant Profit

$150,000 net profit, 24% income tax reserve.

Self-Employment Tax: $21,194 | Above-the-line deduction: $10,597 (half of SE tax) | Net Kept: $92,806.

Key Benefits

  • Calculates both the employer and employee portions of FICA (15.3% total)
  • Accounts for the 50% above-the-line deduction for self-employment tax on Form 1040
  • Provides exact quarterly estimated tax (Form 1040-ES) planning targets

Common Use Cases

  • Sole proprietors, freelancers, and independent contractors calculating quarterly taxes
  • LLC owners considering whether to elect S-Corporation tax status to save on SE taxes
  • W-2 employees taking on side-hustle or 1099 consulting work

How the 15.3% Self-Employment Tax Works

When you work as a W-2 employee, your employer pays half of your FICA taxes (7.65%) and you pay the other half. When self-employed, you must pay both portions: 12.4% for Social Security (capped at the 2026 wage base of $184,500) and 2.9% for Medicare (uncapped), totaling 15.3%.

To offset this burden, the IRS applies SE tax to only 92.35% of your net business profit, and allows you to deduct 50% of your total self-employment tax as an adjustment to income on Form 1040.

Frequently Asked Questions

The self-employment tax rate is 15.3%, consisting of 12.4% for Social Security and 2.9% for Medicare. Because self-employed individuals are both employer and employee, they pay both halves.

The IRS multiplies net business earnings by 92.35% (100% minus 7.65%) to simulate the employer tax deduction that traditional W-2 employers receive, ensuring fair parity.

Yes. You can deduct 50% of your total self-employment tax as an above-the-line adjustment to income on Schedule 1 of Form 1040, lowering your federal adjusted gross income (AGI).

For 2026, the Social Security portion (12.4%) applies only to the first $184,500 of net earnings. The 2.9% Medicare tax applies to all net earnings without any cap.

Estimated quarterly tax payments are due April 15, June 15, September 15, and January 15 for independent contractors expecting to owe $1,000 or more in federal taxes.

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