Use our Self-Employment Tax Calculator to estimate how much self-employment tax you may owe on your business or freelance income.
Enter your estimated net profit from self-employment, any W-2 wages that are already subject to Social Security tax, and your filing status. The calculator estimates your Social Security tax, Medicare tax, Additional Medicare Tax, total self-employment tax, the deductible half of that tax, and an estimated quarterly amount.
Self-employment tax is different from regular federal income tax. If you are self-employed, you generally pay both the employee and employer portions of Social Security and Medicare taxes yourself. This calculator focuses on self-employment tax and does not attempt to calculate your complete federal income tax bill.
Self-Employment Tax Breakdown
The calculation below follows the general federal self-employment tax method used for Schedule SE. Net earnings are generally multiplied by 92.35% before applying the Social Security and Medicare rates.
Estimated Quarterly Amount
How the Calculation Works
The IRS generally starts with net earnings from self-employment and multiplies them by 92.35%. The resulting amount is used to determine the Social Security and Medicare portions of self-employment tax. For 2026, the Social Security wage base is $184,500. The Social Security rate is 12.4% and the Medicare rate is 2.9%. The IRS also allows a deduction for one-half of the self-employment tax when calculating adjusted gross income.
How Self-Employment Tax Works
Self-employment tax is the Social Security and Medicare tax that generally applies to people who work for themselves.
If you are a freelancer, independent contractor, sole proprietor, or other self-employed individual, you generally pay both the employee and employer portions of Social Security and Medicare taxes yourself.
For 2026, the self-employment tax rate consists of 12.4% for Social Security and 2.9% for Medicare. The Social Security portion is subject to the $184,500 wage base for 2026. Medicare tax does not have a wage base limit.
What Income Is Used?
Self-employment tax is generally based on your net earnings from self-employment, rather than your total business revenue.
For example, if your freelance business brings in $100,000 but you have $25,000 of allowable business expenses, your net profit may be $75,000.
The calculation generally uses 92.35% of net earnings to determine the amount subject to self-employment tax.
Why Is 92.35% Used?
Self-employed workers effectively pay both sides of Social Security and Medicare taxes. The IRS therefore uses a special calculation that generally starts with 92.35% of net earnings.
For example:
$75,000 × 92.35% = $69,262.50
That amount is then used in calculating the Social Security and Medicare portions of self-employment tax.
Social Security Tax
For 2026, the Social Security portion of self-employment tax is 12.4%.
However, Social Security tax does not apply to unlimited earnings. The 2026 Social Security wage base is $184,500.
If you also have a W-2 job, your Social Security wages from that job can reduce the amount of your self-employment earnings subject to the Social Security portion of the tax.
Medicare Tax
The Medicare portion of self-employment tax is 2.9%.
Unlike Social Security, Medicare does not have an annual wage base limit. Higher-income taxpayers may also owe an additional 0.9% Additional Medicare Tax depending on their filing status and combined wages and self-employment income.
Can You Deduct Half of Self-Employment Tax?
Generally, yes. The IRS allows a deduction for one-half of self-employment tax when determining adjusted gross income.
This does not mean that half of your self-employment tax disappears. Instead, the deduction can reduce the income used for certain federal income-tax calculations.
Self-Employment Tax Is Not the Same as Federal Income Tax
Self-employment tax and federal income tax are separate.
For example, a freelancer may owe self-employment tax on business earnings and may also owe regular federal income tax after considering deductions, credits, filing status, and other income.
This calculator estimates the self-employment tax portion only.
Self-Employment Tax Examples
Example 1: $50,000 Net Profit
Suppose a freelancer has $50,000 of net self-employment profit and no W-2 wages.
The estimated net earnings used for self-employment tax are:
$50,000 × 92.35% = $46,175
The Social Security portion and Medicare portion are then calculated using the applicable 2026 rates.
The resulting self-employment tax is separate from any regular federal income tax the freelancer may owe.
Example 2: $75,000 Net Profit
Suppose a self-employed worker has $75,000 of net business profit and no W-2 wages.
The estimated net earnings are:
$75,000 × 92.35% = $69,262.50
The calculator then applies the 12.4% Social Security rate and 2.9% Medicare rate to the applicable amounts.
One-half of the resulting self-employment tax is generally deductible when calculating adjusted gross income.
Example 3: Self-Employed With a W-2 Job
Suppose you earn $60,000 from a W-2 job and also have $50,000 of net self-employment profit.
Your W-2 wages are relevant because Social Security has an annual wage base. The W-2 wages can therefore reduce the amount of your self-employment earnings subject to the Social Security portion of SE tax.
Medicare tax is treated differently because it does not have the same wage base limit.
This is why entering your W-2 wages can make the calculator more useful for people who have both a regular job and a side business.
Frequently Asked Questions
What is self-employment tax?
Self-employment tax is generally the Social Security and Medicare tax paid by people who work for themselves. It is separate from regular federal income tax.
What is the self-employment tax rate for 2026?
The basic self-employment tax rate is 15.3%, consisting of 12.4% for Social Security and 2.9% for Medicare. The actual calculation is more complicated because the IRS generally applies the rates to 92.35% of net self-employment earnings and the Social Security portion has a wage base.
How much of my income is subject to self-employment tax?
Generally, self-employment tax is calculated using 92.35% of your net earnings from self-employment rather than 100% of your business profit.
What is the Social Security wage limit for 2026?
The 2026 Social Security wage base is $184,500. Earnings above that amount generally are not subject to the Social Security portion of self-employment tax.
Does Medicare tax have an income limit?
No. Medicare tax does not have the same annual wage base limit as Social Security. Additional Medicare Tax can also apply to higher-income taxpayers.
What if I have both a W-2 job and self-employment income?
Your W-2 Social Security wages can affect how much of your self-employment income is subject to the Social Security portion of self-employment tax.
This is particularly important if your combined W-2 wages and self-employment earnings approach or exceed the annual Social Security wage base.
Can I deduct half of my self-employment tax?
Generally, yes. The IRS allows a deduction for one-half of self-employment tax when calculating adjusted gross income.
Do I have to pay quarterly taxes if I am self-employed?
You may need to make estimated tax payments if you expect to owe enough federal tax during the year. Self-employed individuals generally use estimated-tax rules to account for income tax and self-employment tax when required.
The IRS provides worksheets for estimating self-employment tax and estimated tax payments.
Does self-employment tax include federal income tax?
No. Self-employment tax primarily covers Social Security and Medicare taxes. Regular federal income tax is calculated separately.
Does this calculator include state income tax?
No. State and local taxes vary by location and are not included in this calculator.
Is this calculator exact?
No. It provides an estimate based on the information entered and general 2026 federal rules. Your actual tax calculation can be affected by other income, deductions, credits, special Schedule SE rules, and other circumstances.
Disclaimer: This calculator provides an estimate for informational purposes only. Actual self-employment tax can vary based on your income, expenses, W-2 wages, filing status, deductions, credits, and other tax rules. It is not tax or financial advice.
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