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Your profit after business expenses (Schedule C line 31 or Schedule K-1)

This calculator uses 2025 IRS rates (SS wage base: $176,100). The 2026 wage base will be updated when the IRS publishes it. This is an estimate only and is not tax advice. Consult a tax professional for your specific situation.

Self Employment Tax Estimate

Taxable SE Income (92.35%) --
Social Security Tax (12.4%) --
Medicare Tax (2.9%) --
Total SE Tax --
Deductible Half (50%) --
Effective SE Tax Rate --

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How This Calculator Works

When you work for yourself, you pay both the employer and employee portions of Social Security and Medicare taxes. That is where the 15.3% rate comes from. Regular employees only see 7.65% taken from their paycheck because their employer covers the other half.

The IRS does not apply the full 15.3% to your entire net income. First, they multiply your net earnings by 92.35% (which is 1 minus half of 15.3%). This adjustment exists because employees do not pay FICA tax on the employer share of the tax, so the IRS gives self employed people an equivalent reduction.

Social Security tax applies only on earnings up to the annual wage base ($176,100 for 2025). Income above that threshold is not subject to the 12.4% Social Security portion, but it still owes the 2.9% Medicare tax. If your income exceeds $200,000 (single filer), an additional 0.9% Medicare tax kicks in on the amount over that threshold.

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Important Tax Notes

Self employment tax is separate from income tax. You owe SE tax on top of whatever your regular federal and state income tax bill comes to. The good news is that you can deduct half of your SE tax as an adjustment to income on your 1040, which lowers the income that gets taxed.

If your net self employment income is under $400 for the year, you do not owe any SE tax. Above that threshold, the full amount is taxable (after the 92.35% adjustment).

Estimated quarterly payments are typically required if you expect to owe $1,000 or more in total tax for the year. The due dates are April 15, June 15, September 15, and January 15 of the following year. Missing these deadlines can result in underpayment penalties from the IRS.

Disclaimer: This calculator provides estimates for educational purposes only. It does not constitute tax, legal, or financial advice. Tax laws change regularly. Consult a qualified tax professional or visit irs.gov for official guidance on your specific situation.

Frequently Asked Questions

What is the self employment tax rate for 2026?
The combined self employment tax rate is 15.3 percent. That breaks down to 12.4 percent for Social Security on income up to the wage base limit and 2.9 percent for Medicare on all net earnings. An additional 0.9 percent Medicare tax applies on income above $200,000 for single filers.
Can I deduct self employment tax?
You can deduct half of your self employment tax when you file your income tax return. This is an above the line deduction, meaning you get it even if you do not itemize. It reduces your adjusted gross income, which can lower your overall tax bill.
Who has to pay self employment tax?
Anyone who earns $400 or more in net self employment income during the year must pay self employment tax. This includes freelancers, independent contractors, sole proprietors, and members of partnerships. It does not matter whether this is your main job or a side gig.
What is the Social Security wage base for 2026?
The IRS typically announces the wage base each October for the following year. For 2025 the wage base was $176,100. Check irs.gov for the official 2026 figure, as it adjusts annually based on average wage growth. This calculator uses $176,100 until the 2026 number is published.

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