Self-Employment Tax Calculator
Estimate your 2026 US self-employment tax, federal income tax and the quarterly payments to set aside if you freelance or run your own business.
Figures use published 2026 IRS rates. This is an estimate for federal tax only. It excludes state tax, credits and itemized deductions. Consult a tax professional for exact figures.
Your Income
2026 Self-Employment Tax Rates
| Component | Rate | Applies to |
|---|---|---|
| Social Security | 12.4% | Net earnings up to $184,500 (including W-2 wages) |
| Medicare | 2.9% | All net earnings, no cap |
| Additional Medicare | 0.9% | Combined earnings over $200,000 (single), $250,000 (joint), $125,000 (separate) |
Frequently Asked Questions
Self-employment tax is how freelancers, independent contractors and sole proprietors pay Social Security and Medicare tax. Employees split these taxes with their employer, but when you work for yourself you pay both halves. The combined rate is 15.3%: 12.4% for Social Security and 2.9% for Medicare.
The IRS lets you treat your net profit as if half of the self-employment tax were paid by an employer, which is the same result as multiplying net profit by 92.35% (100% minus 7.65%). Self-employment tax is then charged on that reduced figure, called net earnings from self-employment. If it comes to less than $400 for the year, no self-employment tax is due.
Yes. The 12.4% Social Security portion only applies up to the annual wage base, which is $184,500 for 2026. Wages from a job count towards that limit first, so if you also have a W-2 job, your self-employment income may hit the cap sooner. The 2.9% Medicare portion has no cap, and an extra 0.9% Additional Medicare Tax applies to earnings above $200,000 (single) or $250,000 (married filing jointly).
Yes. You can deduct half of your self-employment tax (the Social Security and Medicare parts, not the 0.9% Additional Medicare Tax) when working out your adjusted gross income. This deduction reduces your income tax but not your self-employment tax. Many sole proprietors can also claim the qualified business income (QBI) deduction of up to 20% of qualified business income.
If you expect to owe $1,000 or more when you file, the IRS expects you to pay as you go through estimated quarterly payments. The usual due dates are April 15, June 15, September 15 and January 15 of the following year. Paying at least 90% of this year's tax, or 100% of last year's tax (110% if your prior-year adjusted gross income was over $150,000), generally avoids an underpayment penalty.
No. It covers federal self-employment tax and federal income tax only. State and local income taxes, sales tax and any state-specific self-employed levies vary widely, so check your state revenue department or speak to a tax professional for the full picture.
Ways to Lower the Bill
- Track every legitimate business expense. Each dollar lowers both self-employment tax and income tax.
- Contribute to a SEP-IRA or Solo 401(k) to reduce income tax (it does not reduce self-employment tax).
- Deduct self-employed health insurance premiums where eligible.
- Claim the home office and mileage deductions if you qualify.
- Pay quarterly to avoid underpayment penalties and a large bill in April.