Self-Employment Tax Calculator
The self-employment tax calculator estimates your Social Security, Medicare, and total federal tax on freelance, 1099, and gig income. Enter net income, expenses, and W-2 wages to see what you owe and what to set aside each quarter.
Results update as you type.
Effective rate on net profit: 0% | Deductible half: $0.00
Estimate based on 2025 and 2026 federal brackets and standard deductions. It ignores the QBI deduction, credits, and state tax.
How to calculate your self-employment tax
Four inputs and one result. Skip any field that doesn’t apply to you.
Enter your self-employment income
Use net profit from 1099-NEC forms, freelance invoices, or gig payouts. Include every business you run.
Enter your business expenses
Subtract costs such as software and mileage. Tax applies to profit, not revenue.
Add W-2 income and withholding
Wages use up part of the Social Security wage base. Withholding is credited against what you owe.
Pick a year and filing status
Status sets your standard deduction, brackets, and Additional Medicare threshold.
What does the self-employment tax calculator estimate?
Ten figures, from net income to what you keep after federal tax.
Income
Net self-employment income is revenue minus expenses. Taxable SE earnings are 92.35% of that figure.
Payroll taxes
Social Security at 12.4%, Medicare at 2.9%, and the 0.9% Additional Medicare tax for high earners.
Self-employment totals
Total SE tax and its deductible half, which is 50% of Social Security plus Medicare.
Take-home
Estimated federal income tax, total federal liability, and after-tax income.
How is self-employment tax calculated?
How is the 12.4% Social Security tax calculated?
Multiply SE earnings by 12.4%, up to $184,500 in 2026 ($176,100 in 2025). On $46,175 of earnings, the tax is $5,726.
How is the 2.9% Medicare tax calculated?
Multiply every dollar of SE earnings by 2.9%. No cap applies. $46,175 × 2.9% = $1,339.
When does the Additional Medicare tax apply?
An extra 0.9% hits combined wages and SE earnings above $200,000 (single or head of household), $250,000 (joint), or $125,000 (separate).
How is the deductible half calculated?
Take 50% of Social Security plus Medicare. On $7,065 that’s $3,532 off adjusted gross income. It lowers income tax, not SE tax.
What income is subject to self-employment tax?
Net earnings of $400 or more from work you do for yourself.
| Income type | Subject to SE tax? | Reported on |
|---|---|---|
| 1099-NEC and freelance income | Yes, once net earnings reach $400 | Schedule C |
| Independent contractor income | Yes | Schedule C |
| Gig work (rideshare, delivery) | Yes, even without a 1099 form | Schedule C |
| Side hustle next to a W-2 job | Yes, on top of payroll tax | Schedule C |
| Several businesses | Yes, profits and losses combine | Schedule SE |
How do business expenses affect self-employment tax?
Expenses cut net profit, and net profit is what gets taxed. A $1,000 deduction saves about $141 in SE tax, before any income tax savings.
Home and equipment
Home office, business equipment, and supplies. The office must be used regularly and only for work.
Communication and travel
Internet, phone, and vehicle costs. Mileage can use the IRS standard rate, so keep a log.
Promotion and services
Advertising, marketing, professional services, and software subscriptions.
How does W-2 income affect self-employment tax?
Do you pay SE tax with a W-2 job?
Yes. Side income of $400 or more is taxed on its own, even when your employer withholds tax on wages.
How do W-2 wages affect the wage base?
Wages count toward the $184,500 cap first. With $150,000 in wages, only $34,500 of SE earnings face the 12.4% tax.
Does W-2 withholding cover SE tax?
It can if you raise it on Form W-4. The calculator credits the withholding you enter against your total.
How do you tax combined W-2 and 1099 income?
Wages and net profit add up for income tax. SE tax uses profit only. Check your wages in the salary paycheck calculator.
How do quarterly estimated taxes work?
Pay quarterly if you expect to owe $1,000 or more after withholding. Divide your estimated annual liability by four.
| Quarter | Income period | Due date |
|---|---|---|
| Q1 | January 1 to March 31 | April 15 |
| Q2 | April 1 to May 31 | June 15 |
| Q3 | June 1 to August 31 | September 15 |
| Q4 | September 1 to December 31 | January 15 of the next year |
How much should freelancers set aside?
A single filer with $50,000 of profit owes about 21% in federal tax. Setting aside 25% to 30% also covers most state tax.
What happens if you underpay?
The IRS adds a penalty for each quarter you fall short, counted from that quarter’s due date.
How can you avoid penalties?
Pay 90% of this year’s tax or 100% of last year’s, whichever is less. Use 110% of last year’s if your AGI topped $150,000.
Due dates that fall on a weekend or holiday move to the next business day. Payment details are in IRS Form 1040-ES.
Does filing status change your self-employment tax rate?
No. The 15.3% rate is the same for every filer. Status changes your standard deduction, tax brackets, and Additional Medicare threshold.
| Filing status | 2026 standard deduction | Additional Medicare threshold |
|---|---|---|
| Single | $16,100 | $200,000 |
| Married filing jointly | $32,200 | $250,000 |
| Married filing separately | $16,100 | $125,000 |
| Head of household | $24,150 | $200,000 |
Spouses with separate businesses each file their own Schedule SE on their own profit.
Self-employment tax questions
How much is self-employment tax at each income level?
| Net profit | SE tax (2026) | Deductible half |
|---|---|---|
| $10,000 | $1,413 | $706 |
| $30,000 | $4,239 | $2,119 |
| $50,000 | $7,065 | $3,532 |
| $75,000 | $10,597 | $5,299 |
| $100,000 | $14,130 | $7,065 |
What is the self-employment tax rate in 2026?
15.3%: 12.4% Social Security plus 2.9% Medicare, applied to 92.35% of net profit. Social Security stops at $184,500 of combined earnings.
Is self-employment tax the same as federal income tax?
No. Self-employment tax funds Social Security and Medicare. Income tax is figured separately on your return, after you subtract the deductible half.
What is the minimum income to pay self-employment tax?
$400 in net earnings. Below that, no self-employment tax is due.
Can you avoid self-employment tax legally?
You can lower it with deductible business expenses. An S corporation election may cut it at higher profits, but it adds payroll costs, so ask a CPA first.
Do you pay self-employment tax if you have a loss?
No. Self-employment tax applies only to net earnings of $400 or more, and a loss can offset income from your other businesses.
Sources: IRS self-employment tax and SSA wage base. Got a bonus too? Try the bonus tax calculator.