This self-employment tax calculator works out the Social Security and Medicare tax that freelancers, contractors and small business owners pay on their net profit in 2026, plus the deduction for half of it and a quarterly payment estimate.
How self-employment tax is calculated
- Multiply net profit by 92.35% to get net earnings from self-employment.
- Pay 12.4% Social Security tax on earnings up to the $184,500 wage base (reduced by any W-2 wages).
- Pay 2.9% Medicare tax on all net earnings.
- Pay a further 0.9% Additional Medicare Tax on earnings over $200,000 single, $250,000 joint or $125,000 married filing separately.
You can deduct half of your self-employment tax (not the Additional Medicare Tax) when working out your adjusted gross income.
2026 self-employment tax figures
| Item | 2026 |
|---|---|
| Social Security rate (self-employed) | 12.4% |
| Social Security wage base | $184,500 |
| Medicare rate (self-employed) | 2.9%, no limit |
| Additional Medicare Tax | 0.9% above $200,000 / $250,000 joint |
| Minimum net earnings for SE tax | $400 |
Worked example
A freelancer with $80,000 of net profit has $73,880 of net earnings from self-employment. Social Security tax is $9,161.12 and Medicare tax is $2,142.52, a total of $11,303.64. Half of that, $5,651.82, is deductible on the income tax return.
Paying quarterly
Self-employed people usually make estimated tax payments four times a year, covering both income tax and self-employment tax. Paying too little can lead to an underpayment penalty.
Frequently asked questions
What is the self-employment tax rate for 2026?
15.3% of net earnings: 12.4% for Social Security on earnings up to $184,500 and 2.9% for Medicare on all earnings, plus 0.9% Additional Medicare Tax on high earnings.
Why is self-employment tax calculated on 92.35% of profit?
It mirrors the fact that employers can deduct their half of payroll taxes. Multiplying by 92.35% (100% minus 7.65%) puts the self-employed on a similar footing.
Do I pay self-employment tax if I also have a job?
Yes, on your self-employment profit. Your W-2 wages count toward the Social Security wage base first, so the 12.4% part stops once combined earnings reach $184,500.
When are quarterly estimated taxes due?
Usually April 15, June 15 and September 15 of the tax year, and January 15 of the following year, moved to the next business day if a date falls on a weekend or holiday.
Is self-employment tax the same as income tax?
No. It is a separate tax for Social Security and Medicare. You pay income tax on your profit as well, which is why freelancers often set aside 25% to 30% of profit.
Related calculators
Sources
Last reviewed: October 2026 against official government sources. This calculator gives estimates for education only and is not tax advice.