Self-Employment Tax Calculator
Calculate your 15.3% SE tax, federal income tax, and quarterly estimated payments. Essential for freelancers, contractors, and gig workers.
Self-employment tax covers Social Security (12.4%) and Medicare (2.9%), totaling 15.3%. As an employee, your employer pays half and you pay half. When self-employed, you pay both halves.
Self-Employment Tax Calculator
Calculate SE tax, federal tax, and quarterly payments for freelancers and contractors
Gross income from freelancing, contracts, or side business
Equipment, software, home office, travel, supplies, etc.
Salary, wages, or other non-SE income
Standard deduction: $16,100
Total Tax Liability
$14,342
Effective rate: 17.9%
Self-Employment Tax (15.3%)
Federal Income Tax
Quarterly Estimated Payments
$3,586 / quarter
2026 Due Dates:
SE Tax
$9,891
15.3% on net earnings
Income Tax
$4,452
Federal income tax
After-Tax Income
$55,658
Monthly
$4,638
2026 Self-Employment Tax Rates
How to Use This Calculator
- Enter your self-employment income – Total 1099 income, freelance earnings, or business revenue.
- Deduct business expenses – Equipment, software, home office, travel, and other legitimate expenses.
- Add any other income – W-2 wages or other income that affects your tax bracket.
- Review your quarterly payments – See how much to pay each quarter to avoid penalties.
Understanding Your Results
Self-employment tax (15.3%) is your contribution to Social Security and Medicare. It's calculated on 92.35% of your net self-employment income, not the full amount.
Federal income tax is calculated after deducting half your SE tax and the standard deduction. The calculator then takes the 20% qualified business income (QBI) deduction, which most sole proprietors can claim. It phases out for single filers with taxable income between $201,750 and $276,750 (joint $403,500 to $553,500) when the business has no employees. A specified service business, such as consulting, can lose it faster.
Quarterly payments help you avoid underpayment penalties. Pay 1/4 of your estimated annual tax each quarter on the due dates shown.
Sources
Rates and thresholds checked against these official pages on .
- IRS: Qualified business income deduction
- IRS: Self-employment tax (Social Security and Medicare taxes)
- IRS: Topic no. 554, Self-employment tax
- IRS: Publication 334, Tax Guide for Small Business
- SSA: Contribution and Benefit Base
- IRS: IRS releases tax inflation adjustments for tax year 2026
- IRS: Revenue Procedure 2025-32, 2026 tax rate tables and inflation adjustments
- IRS: Publication 505, Tax Withholding and Estimated Tax
Frequently Asked Questions
What is self-employment tax and why is it 15.3%?
Self-employment tax covers Social Security (12.4%) and Medicare (2.9%), totaling 15.3%. As an employee, your employer pays half and you pay half. When self-employed, you pay both halves. However, you can deduct half of your SE tax when calculating income tax, which helps offset this burden.
How do I calculate my self-employment tax?
SE tax is calculated on 92.35% of your net self-employment income (income minus business expenses). Multiply that by 15.3% for incomes under the Social Security wage base ($184,500 in 2026). Above that, only the 2.9% Medicare portion applies to additional income.
Do I need to pay quarterly estimated taxes?
Yes, if you expect to owe $1,000 or more in taxes. The IRS requires quarterly payments to avoid underpayment penalties. Due dates are April 15, June 15, September 15, and January 15. Missing payments can result in penalties even if you pay the full amount when filing.
What business expenses can I deduct?
Common deductions include: home office expenses, equipment and software, internet and phone bills (business portion), professional services, marketing costs, travel expenses, health insurance premiums (if self-employed), and retirement contributions (SEP IRA, Solo 401k).
How can I reduce my self-employment tax?
Key strategies include: maximizing legitimate business deductions, contributing to a SEP IRA or Solo 401(k), considering S-Corp election if income exceeds ~$50k, and deducting health insurance premiums. An S-Corp can help split income between salary (subject to SE tax) and distributions (not subject to SE tax).
What is the Social Security wage base for 2026?
The Social Security wage base for 2026 is $184,500. This means you only pay the 12.4% Social Security portion of SE tax on the first $184,500 of net self-employment earnings. Income above this is only subject to the 2.9% Medicare tax (plus 0.9% additional Medicare tax if over $200k).
What is the additional Medicare tax?
An extra 0.9% Medicare tax applies to self-employment income exceeding $200,000 (single or head of household), $250,000 (married filing jointly), or $125,000 (married filing separately). This is on top of the regular 2.9% Medicare tax, bringing the Medicare portion to 3.8% on high incomes.
Can I deduct half of my self-employment tax?
Yes, you can deduct the employer-equivalent portion (half) of your self-employment tax when calculating your adjusted gross income. This reduces your income tax but does not reduce the SE tax itself. This deduction is taken directly on Form 1040, not on Schedule C.
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