Self-Employment Tax Calculator (2026)

TL;DR — Quick Answer

Self-employment tax is 15.3% — the combined employee and employer shares of Social Security (12.4%) and Medicare (2.9%) — applied to 92.35% of your net self-employment income. This is in addition to federal and state income tax. You can deduct half of SE tax on your 1040 to reduce your income tax liability.

Applies to anyone with net SE income of $400 or more
You pay both the employer and employee shares of FICA
Quarterly estimated payments are required to avoid penalties

15.3%

Total SE Tax Rate

12.4% SS + 2.9% Medicare

92.35%

Taxable Portion

Of net SE income

$176,100

SS Wage Base

2026 cap on SS portion

What Is Self-Employment Tax?

Self-employment tax is the FICA equivalent for people who work for themselves. Employees split FICA with their employer (7.65% each), but self-employed individuals pay both halves — the full 15.3% — because they are both the employer and the employee.

SE tax is reported on Schedule SE (Form 1040) and is separate from your federal income tax. It funds Social Security and Medicare, which means paying SE tax earns you credits toward future Social Security benefits.

Who Pays SE Tax?

Freelancers, independent contractors (1099), gig workers, sole proprietors, and general partners all pay self-employment tax on their net earnings. S-Corp shareholders pay themselves a W-2 salary instead, which is subject to regular FICA.

How SE Tax Is Calculated

The calculation has two layers: the 92.35% adjustment and the 15.3% tax rate.

Calculate Net SE Income

Start with your gross self-employment revenue and subtract all business expenses. This is your net SE income from Schedule C (or Schedule K-1 for partnerships).

Apply the 92.35% Factor

Multiply net SE income by 0.9235 to get your taxable SE income. This simulates the employer half of FICA that W-2 employees don't pay directly.

Apply the 15.3% Rate

Multiply the result by 15.3%. If your income exceeds $176,100 (after the 92.35% adjustment), the 12.4% Social Security portion stops and only the 2.9% Medicare rate applies.

Net SE Income	Taxable (×92.35%)	SE Tax (15.3%)	Effective Rate
$50,000	$46,175	$7,064.78	14.13%
$75,000	$69,263	$10,597.17	14.13%
$100,000	$92,350	$14,129.55	14.13%
$150,000	$138,525	$21,194.33	14.13%
$200,000	$184,700	$26,893.02	13.45%

The 92.35% Rule

The 92.35% factor exists to put self-employed individuals on equal footing with W-2 employees. Employers pay their half of FICA (7.65%) on top of wages — that cost is not income to the employee. The 92.35% adjustment effectively gives self-employed taxpayers the same benefit: you only pay SE tax on the portion of income that is analogous to employee wages.

Mathematically, 100% − 7.65% = 92.35%. This is why the effective SE tax rate is approximately 14.13% (15.3% × 92.35%) rather than the full 15.3%.

Quarterly Estimated Payments

Unlike W-2 employees who have taxes withheld each paycheck, self-employed individuals must make quarterly estimated tax payments to cover both income tax and SE tax.

Quarter	Income Period	Due Date
Q1	January – March	April 15
Q2	April – May	June 16
Q3	June – August	September 15
Q4	September – December	January 15 (following year)

Underpayment Penalties

If you owe $1,000 or more in taxes at filing time, the IRS may charge an underpayment penalty. To avoid this, pay at least 100% of last year's tax liability (110% if your AGI exceeded $150,000) or 90% of the current year's liability through quarterly payments.

Deducting Half of SE Tax

You can deduct 50% of your self-employment tax as an above-the-line deduction on Form 1040 (Schedule 1, Part II). This deduction reduces your adjusted gross income (AGI), which in turn reduces your income tax — but it does not reduce the SE tax itself.

Deduction Type

Above-the-line (reduces AGI)

Amount

50% of total SE tax

Effect

Lowers income tax, not SE tax

Where Claimed

Schedule 1, Line 15

Employer Tax Calculator

Compare what businesses pay in employer payroll taxes per employee

Frequently Asked Questions

Anyone with net self-employment income of $400 or more per year. This includes freelancers, independent contractors, gig workers, sole proprietors, and partners in a partnership. You pay SE tax even if you also have a W-2 job.

Multiply your net self-employment income by 92.35%, then apply the 15.3% SE tax rate. For example, on $100,000 net SE income: $100,000 × 0.9235 = $92,350 taxable. SE tax = $92,350 × 15.3% = $14,129.55.

You can deduct half (50%) of your self-employment tax as an above-the-line deduction on your 1040. This reduces your adjusted gross income (AGI) and your income tax, but it does not reduce the SE tax itself.

Q1: April 15, Q2: June 16, Q3: September 15, Q4: January 15 of the following year. If the deadline falls on a weekend or holiday, the due date moves to the next business day. Underpayment may result in penalties.

Yes. However, your W-2 wages count toward the Social Security wage base. If your W-2 wages already exceed $176,100, you only pay the 2.9% Medicare portion on self-employment income, not the 12.4% Social Security portion.