Self-Employment Tax Calculator 2026

Calculate your SE tax instantly. Enter your net income, see your Social Security and Medicare tax breakdown, and discover if S-Corp election could reduce your tax burden.

15.3%
SE Tax Rate
$184,500
2026 SS Wage Base
50%
Deductible Portion
Based on 2026 IRS rules. SE tax applies to net self-employment earnings over $400 from Schedule C, Schedule F, or partnership K-1 income. View SSA wage base →

What is self-employment tax?

Self-employment tax is a 15.3% tax that funds Social Security (12.4%) and Medicare (2.9%). Unlike employees who split FICA taxes with employers, self-employed individuals pay both portions. The good news: you can deduct 50% of your SE tax when calculating adjusted gross income. For 2026, the Social Security portion only applies to the first $184,500 of net self-employment income (after the 92.35% adjustment). Income above this cap is subject only to Medicare tax. High earners pay an additional 0.9% Medicare tax on SE income over $200,000 (single) or $250,000 (married).

Key Takeaways

  • 15.3% total rate – 12.4% Social Security + 2.9% Medicare on 92.35% of net income
  • $184,500 Social Security cap (2026) – SS tax only applies to first $184,500 of taxable SE income
  • 50% is deductible – Deduct half your SE tax on Form 1040 Schedule 1, lowering your AGI
  • $400 minimum threshold – SE tax only applies if net self-employment earnings exceed $400
  • S-Corp can save taxes – When income exceeds $75,000-80,000, S-Corp election may reduce SE tax burden

Calculate Your Self-Employment Tax

Your annual net profit from self-employment (gross income minus business expenses)

Affects Additional Medicare Tax threshold ($200k single, $250k married)

If you have W-2 income from another job, it affects your remaining Social Security wage base

Your Estimated Self-Employment Tax Breakdown*

Net Self-Employment Income: $0
Taxable SE Income (× 92.35%): $0
Social Security Tax (12.4% on first $184,500): $0
Medicare Tax (2.9% on all income): $0
Total Self-Employment Tax: $0
Deductible Portion (50%): $0
Effective SE Tax Rate: 0%

💡 Could You Save with S-Corp Election?

If you paid yourself a reasonable W-2 salary of $0 (40% of your income):

Your current SE tax: $0
S-Corp payroll tax (on salary only): $0
Estimated annual savings: $0

*Before compliance costs of $3,500-5,000/year for payroll, tax prep, and state fees. S-Corp typically makes sense when net income exceeds $75,000-80,000 annually.

Calculate Your S-Corp Savings → Learn About S-Corps →

⚠️ Calculator Disclaimer

*This calculator provides estimates for educational purposes only. Actual SE tax depends on your complete tax situation, other income sources, and applicable deductions. Results based on 2026 IRS rules and $184,500 Social Security wage base. For personalized analysis, schedule a consultation.

How Self-Employment Tax Works

The 15.3% Rate Breakdown

Self-employment tax combines two separate taxes: Social Security (12.4%) and Medicare (2.9%), totaling 15.3%. Employees split these FICA taxes 50/50 with their employers. As a self-employed individual, you’re both the employee and employer, so you pay the full amount.

Why the 92.35% Multiplier?

Before calculating SE tax, your net income is multiplied by 92.35% (or 0.9235). This adjustment accounts for the fact that employers get to deduct their half of FICA taxes as a business expense. The IRS provides this equivalent benefit to self-employed individuals through this multiplier.

Social Security Wage Base Cap

For 2026, the Social Security portion (12.4%) only applies to the first $184,500 of taxable self-employment income. Income above this threshold is subject only to Medicare tax. If you have W-2 income from another job, that income counts toward the $184,500 cap first, potentially reducing or eliminating your SE Social Security tax.

The 50% Deduction

You can deduct 50% of your self-employment tax as an adjustment to income on Form 1040 Schedule 1. This deduction reduces your adjusted gross income (AGI), which can lower your income tax. However, it doesn’t reduce your self-employment tax itself.

Additional Medicare Tax for High Earners

If your net self-employment income exceeds $200,000 (single/head of household) or $250,000 (married filing jointly), you’ll owe an additional 0.9% Medicare tax on the amount over the threshold. This Additional Medicare Tax doesn’t have a 50% deduction.

When Self-Employment Tax Applies

$400 Filing Threshold

You must file Schedule SE and pay self-employment tax if your net self-employment earnings are $400 or more. This applies to income from:

  • Schedule C (sole proprietorship, freelance, gig work)
  • Schedule F (farming income)
  • Schedule K-1 from partnerships (your share of partnership income)

Quarterly Estimated Payments

Self-employment income isn’t subject to withholding, so you’ll likely need to make quarterly estimated tax payments. If you expect to owe $1,000 or more when you file, estimated payments help you avoid underpayment penalties. Due dates are April 15, June 15, September 15, and January 15.

Resources: IRS Schedule SE | Schedule C Tax Guide

Frequently Asked Questions

What is self-employment tax?
Self-employment tax is a 15.3% tax that self-employed individuals pay to fund Social Security (12.4%) and Medicare (2.9%). It’s the equivalent of FICA taxes that employees and employers split. If you’re self-employed, you pay both the employee and employer portions, but you can deduct 50% of the SE tax when calculating your adjusted gross income.
How do I calculate self-employment tax?
To calculate self-employment tax: (1) Multiply your net self-employment income by 92.35% to get taxable SE income, (2) Calculate Social Security tax at 12.4% on the first $184,500 for 2026, (3) Calculate Medicare tax at 2.9% on all taxable income, (4) Add both amounts for total SE tax. You can deduct 50% of this amount on your Form 1040.
What is the Social Security wage base for 2026?
The Social Security wage base for 2026 is $184,500, up from $176,100 in 2025. This means the 12.4% Social Security portion of self-employment tax only applies to the first $184,500 of net self-employment earnings. Income above this threshold is only subject to the 2.9% Medicare tax (and 0.9% Additional Medicare Tax for high earners).
Can I deduct self-employment tax?
Yes, you can deduct 50% of your self-employment tax as an adjustment to income on Form 1040. This deduction reduces your adjusted gross income (AGI) but not your self-employment tax itself. The deduction represents the employer-equivalent portion of SE tax and is claimed on Schedule 1.
When should I consider S-Corp election?
S-Corp election typically makes sense when net self-employment income exceeds $75,000-80,000 annually. At this income level, the self-employment tax savings from paying yourself a reasonable W-2 salary (instead of all income being subject to SE tax) usually exceeds the additional compliance costs of $3,500-5,000 per year. Use our S-Corp Tax Calculator for a detailed comparison.
Do I need to pay quarterly estimated taxes?
Yes, if you expect to owe $1,000 or more in taxes (including self-employment tax) when you file your return, you must pay quarterly estimated taxes. Due dates are April 15, June 15, September 15, and January 15. Use Form 1040-ES to calculate and pay estimated taxes to avoid underpayment penalties.

Need Help with Self-Employment Taxes?

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