Self-Employment Tax Calculator 2026

Calculate Schedule SE taxes, the deductible half, federal and state income taxes, and quarterly estimated payments.
Built for freelancers, 1099 contractors, and sole proprietors.

Last updated: September 2026 — rates sourced from IRS, SSA & state revenue departments

Schedule SE Calculator

Net Self-Employment Income (Annual)

Gross revenue minus business expenses (what you'd report on Schedule C)

W-2 Income from Other Jobs (optional)

Affects Social Security wage base — reduces SS portion of SE tax

Filing Status

State

SE Tax (Schedule SE)

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Social Security + Medicare

SE Tax Deduction

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Deduct half of SE tax from AGI

Total Tax Burden

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SE + federal income + state

Net After All Taxes

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Effective rate: —

Tax BreakdownAmount

Net SE Income (92.35% of gross) —

Social Security (12.4%, up to $176,100) —

Medicare (2.9%) —

Total SE Tax —

SE Tax Deduction (−50% of SE tax from AGI) —

Federal Taxable Income (AGI − standard deduction) —

Federal Income Tax —

State Income Tax (—) —

Total Tax (SE + Federal + State) —

Net After All Taxes —

Quarterly Estimated Tax Payments

Pay approximately $— each quarter to cover your tax liability and avoid underpayment penalties.

April 15, 2026 — Jan–Mar income

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June 16, 2026 — Apr–May income

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September 15, 2026 — Jun–Aug income

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January 15, 2027 — Sep–Dec income

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Safe harbor: Each payment ≥ 25% of prior year tax (100% if prior AGI < $150K; 110% if above) avoids IRS underpayment penalty.

As a freelancer (1099)

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You pay both halves of FICA

Same income as W-2 employee

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Employer pays half of FICA

Freelancer premium

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Extra tax cost of being self-employed

Compare full 1099 vs W-2 breakdown including business deductions →

How Self-Employment Tax Works in 2026

When you work as a freelancer, independent contractor, or sole proprietor, you are responsible for paying both the employee and employer portions of Social Security and Medicare taxes — collectively called self-employment (SE) tax. W-2 employees only pay the employee half (7.65%); their employer silently covers the other 7.65%. As a self-employed person, you pay the full 15.3% yourself via Schedule SE.

The 92.35% Factor

The IRS does not apply SE tax to 100% of your net earnings. Instead, it multiplies your net self-employment income by 92.35% before calculating the tax. This factor exists because employees pay FICA only on wages that have already been reduced by the employer's 7.65% matching contribution. The 92.35% adjustment gives self-employed individuals the same rough treatment. On $100,000 net income: $100,000 × 92.35% = $92,350 subject to SE tax → $92,350 × 15.3% = $14,130 SE tax.

The Deductible Half

IRS allows you to deduct 50% of your SE tax from your adjusted gross income (AGI) on Schedule 1. This deduction does not reduce SE tax — it reduces the income on which your federal income tax is calculated. On $100,000 net income with $14,130 SE tax: SE deduction = $7,065. Your federal income tax is calculated on $100,000 − $7,065 − $15,000 (standard deduction) = $77,935 taxable income instead of $85,000. This saves roughly $900–$2,800 depending on your bracket.

Social Security Wage Base Cap

The Social Security portion of SE tax (12.4%) only applies to net earnings up to the Social Security wage base, which is $176,100 for 2026. Above that threshold, you continue to pay Medicare (2.9%) with no cap, and the additional 0.9% Medicare surtax applies on earnings over $200,000 (single) or $250,000 (married filing jointly). If you also have W-2 wages, those wages count toward the wage base first — this calculator accounts for that.

Quarterly Estimated Payments

Self-employed individuals must make quarterly estimated tax payments to IRS throughout the year. Payments cover both SE tax and federal income tax. The 2026 due dates are April 15 (Q1), June 16 (Q2), September 15 (Q3), and January 15, 2027 (Q4). To avoid a penalty, each payment should equal at least 25% of your estimated annual tax liability — or meet the safe harbor rule (100% of prior year tax, or 110% if prior AGI exceeded $150,000).

FAQ

Common questions about SE tax

What is self-employment tax?

Self-employment tax is the combined Social Security and Medicare tax paid by freelancers, contractors, and sole proprietors. For 2026, the rate is 15.3% (12.4% SS + 2.9% Medicare) applied to 92.35% of your net self-employment earnings. Unlike W-2 employees who split FICA with an employer, self-employed individuals pay both halves themselves.

How is self-employment tax calculated for 2026?

Multiply net earnings by 92.35% to get the SE tax base. Then apply 12.4% SS (on earnings up to $176,100) plus 2.9% Medicare (no cap). An additional 0.9% Medicare applies on SE earnings over $200,000 (single) or $250,000 (married). The total equals your Schedule SE tax.

Can I deduct half of my self-employment tax?

Yes. IRS allows you to deduct 50% of SE tax paid from your adjusted gross income on Schedule 1 (Form 1040). This deduction lowers your taxable income for federal (and usually state) income tax purposes, saving you hundreds to thousands of dollars depending on your bracket.

How much should I set aside for quarterly estimated taxes?

Most tax professionals recommend 25–30% of gross self-employment income. Quarterly estimated payments are due April 15, June 16, September 15, and January 15. To avoid underpayment penalties, pay at least 100% of last year's tax (110% if prior AGI exceeded $150,000), or 90% of the current year's estimated tax.

What is the difference between self-employment tax and income tax?

They are separate obligations. SE tax (Schedule SE) covers Social Security and Medicare — replacing the FICA that W-2 employers withhold. Income tax (Form 1040) is based on your taxable income and filing status. As a freelancer you owe both: SE tax on your net earnings, plus federal income tax and state income tax on AGI after the SE deduction.