Total 1099 / freelance / business revenue
Please enter your gross self-employment income.
Home office, mileage, equipment, software, insurance, etc.
Spouse income, side W-2, investment income, etc.
Reduces federal income tax (max 25% of net SE income or $70,000)
Total SE Tax
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⚠️ Disclaimer: This calculator provides 2026 estimates for educational purposes. Actual tax liability depends on your complete tax situation, state taxes, other income, credits, and deductions. Consult a CPA or tax professional for advice specific to your situation.
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Sources & Methodology
SE tax formula, 2026 SS wage base, and federal brackets verified against IRS Schedule SE and NerdWallet 2026 tax data.
IRS — Self-Employed Individuals Tax Center
irs.gov — Official IRS guidance on Schedule SE, quarterly estimated payments, and self-employment deductions.
NerdWallet — Self-Employment Tax 2026 Rates
nerdwallet.com — 2026 SS wage base confirmation ($184,500), SE tax rate breakdown and quarterly payment guidance.
SE Tax (Schedule SE):
1. Net SE income = Gross income − Business expenses
2. SE tax base = Net SE income × 92.35%
3. SS tax = min(SE base, $184,500) × 12.4%
4. Medicare tax = SE base × 2.9%
5. Total SE tax = SS tax + Medicare tax
6. SE deduction = SE tax × 50% (reduces AGI)
7. Federal income tax applied on (Net income − SE deduction − QBI − Standard deduction − SEP-IRA)
1. Net SE income = Gross income − Business expenses
2. SE tax base = Net SE income × 92.35%
3. SS tax = min(SE base, $184,500) × 12.4%
4. Medicare tax = SE base × 2.9%
5. Total SE tax = SS tax + Medicare tax
6. SE deduction = SE tax × 50% (reduces AGI)
7. Federal income tax applied on (Net income − SE deduction − QBI − Standard deduction − SEP-IRA)
Last reviewed: April 2026
How Self-Employment Tax Is Calculated for 2026
Self-employment tax (SE tax) is a 15.3% tax that funds Social Security and Medicare for self-employed individuals. Unlike W-2 employees who split these taxes 50/50 with their employer, self-employed people pay both halves. The good news: you can deduct 50% of SE tax when calculating your adjusted gross income, and business expenses reduce your taxable base.
SE Tax Formula (2026)
SE Tax = (Net Income × 0.9235) × 15.3%
Example: $80,000 gross, $12,000 expenses → net SE income = $68,000
SE base = $68,000 × 0.9235 = $62,798
SS tax = $62,798 × 12.4% = $7,787 | Medicare = $62,798 × 2.9% = $1,821
Total SE tax = $9,608 | SE deduction = $9,608 × 50% = $4,804
SE base = $68,000 × 0.9235 = $62,798
SS tax = $62,798 × 12.4% = $7,787 | Medicare = $62,798 × 2.9% = $1,821
Total SE tax = $9,608 | SE deduction = $9,608 × 50% = $4,804
2026 Federal Income Tax Brackets (Single)
| Taxable Income | Rate | On This Bracket |
|---|---|---|
| $0 – $11,925 | 10% | $0 – $1,193 |
| $11,926 – $48,475 | 12% | $1,193 – $5,578 |
| $48,476 – $103,350 | 22% | $5,578 – $17,657 |
| $103,351 – $197,300 | 24% | $17,657 – $40,274 |
| Over $197,300 | 32%+ | Higher brackets above |
Tax-Saving Strategies for Self-Employed Individuals
The three most powerful tax reduction tools are: (1) maximize deductible business expenses — every dollar of legitimate expense reduces both SE tax and income tax; (2) contribute to a SEP-IRA or Solo 401(k) — contributions of up to $70,000 (SEP-IRA, 2026) reduce federal income tax significantly; (3) claim the QBI deduction — eligible sole proprietors can deduct 20% of qualified business income, one of the largest available deductions.
💡 Pro Tip: Set aside 25-30% of every payment you receive into a separate savings account specifically for taxes. Make quarterly payments by the deadlines (April 15, June 15, September 15, January 15) to avoid underpayment penalties. Use Form 1040-ES to calculate your quarterly amounts.
Frequently Asked Questions
Self-employment tax is a 15.3% tax that funds Social Security (12.4%) and Medicare (2.9%). It is the equivalent of FICA taxes that employees and employers split. As self-employed, you pay both portions, but you can deduct 50% of SE tax when calculating your adjusted gross income.
Step 1: Multiply net self-employment income by 92.35% to get SE tax base. Step 2: Apply 12.4% Social Security on the first $184,500 of SE base. Step 3: Apply 2.9% Medicare on all SE base. Step 4: Sum both amounts. Step 5: Deduct 50% of SE tax from income before calculating federal income tax.
The Social Security wage base for 2026 is $184,500. You pay 12.4% Social Security tax only on the first $184,500 of net self-employment income (after the 92.35% adjustment). Income above this cap is subject only to Medicare tax.
The IRS applies a 92.35% multiplier to net self-employment income before calculating SE tax. This accounts for the fact that employees deduct half their FICA taxes as a business expense. The 92.35% = 1 minus 7.65% (the employer half of FICA), giving self-employed individuals an equivalent adjustment.
Quarterly due dates are: Q1 April 15, Q2 June 15, Q3 September 15, Q4 January 15 (2027). If you expect to owe $1,000 or more when you file, you are required to make quarterly estimated payments to avoid underpayment penalties.
Yes. SE tax is calculated on net self-employment income (gross income minus legitimate business expenses). Common deductible expenses include home office, vehicle mileage ($0.725/mile for 2026), equipment, software, health insurance premiums, professional services, and advertising.
The Qualified Business Income (QBI) deduction under Section 199A allows eligible self-employed individuals to deduct up to 20% of qualified business income from federal income tax (not SE tax). Income limits apply and certain professional service businesses face restrictions above threshold income levels.
Most financial advisors recommend setting aside 25-30% of net self-employment income for federal taxes (SE tax + federal income tax). Add your state income tax rate on top. High-income earners in states like California, New York, or Oregon should budget 35-40%.
An additional 0.9% Medicare surtax applies to self-employment income exceeding $200,000 for single filers or $250,000 for married filing jointly. This is in addition to the regular 2.9% Medicare tax and is not deductible.
No. You only owe self-employment tax if your net self-employment earnings are $400 or more. Below $400, SE tax does not apply. However, you may still need to report the income on your tax return depending on total income.
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