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Self-Employment Tax Calculator: 2026 SE Tax Estimate

Estimate self-employment tax from net profit: Social Security 12.4%, Medicare 2.9%, Additional Medicare Tax and the deduction for half. 2026 and 2025.

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⚠️ Not financial advice. Results are illustrative only and should not be used as the basis for any investment, tax, or financial decision. Consult a qualified financial adviser or chartered accountant before acting on any figure shown.

Schedule C line 31: income minus business expenses. A loss owes no self-employment tax.

Sets the Additional Medicare Tax threshold ($200,000).

W-2 boxes 3 plus 7. They use up part of the $184,500 Social Security limit.

W-2 box 5. Used for the Additional Medicare Tax.

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How self-employment tax is worked out

If you work for yourself you pay both halves of Social Security and Medicare tax: 12.4% for Social Security and 2.9% for Medicare, 15.3% in all. It is charged on 92.35% of your net profit, which the IRS treats as your net earnings from self-employment, and you owe it once those earnings reach $400. The calculation follows Schedule SE (Form 1040).

  1. Net earnings = net profit × 92.35%.
  2. Social Security tax = 12.4% × the smaller of net earnings and the room left under the wage base ($184,500 for 2026, $176,100 for 2025), after subtracting any Social Security wages from a W-2 job.
  3. Medicare tax = 2.9% × net earnings, with no limit.
  4. Self-employment tax = Social Security tax + Medicare tax. You deduct half of it from your income.

Example: $100,000 of net profit in 2026

Net earnings are $92,350.00. Social Security tax is $11,451.40 and Medicare tax is $2,678.15, so the self-employment tax is $14,129.55, or 14.13% of the profit. The deduction for half of it is $7,064.78.

Self-employment tax at different profits (2026, single, no W-2 job)

Net profitSelf-employment taxAdditional Medicare TaxDeduction for halfTotal as % of profit
$30,000$4,238.87-$2,119.4314.13%
$50,000$7,064.78-$3,532.3914.13%
$75,000$10,597.16-$5,298.5814.13%
$100,000$14,129.55-$7,064.7814.13%
$150,000$21,194.32-$10,597.1614.13%
$200,000$28,234.30-$14,117.1514.12%
$250,000$29,573.38$277.88$14,786.6911.94%

The rate drops once profit passes the wage base, because the 12.4% Social Security part stops while Medicare continues.

Additional Medicare Tax

A further 0.9% applies to Medicare wages and self-employment income above $200,000 for single, head of household and qualifying surviving spouse filers, $250,000 for married filing jointly and $125,000 for married filing separately. These thresholds are not adjusted for inflation. You report it on Form 8959, and it is not part of the deduction for half of the self-employment tax.

What this does not cover

Self-employment tax is separate from income tax, which you work out on your profit after the deduction for half of the self-employment tax: use the federal tax bracket calculator for that. This estimate is for one business and leaves out the optional methods, church employee income and railroad retirement compensation. To set a rate that covers the tax, see the freelance rate calculator.

Frequently asked questions

What is the self-employment tax rate?
15.3%: 12.4% for Social Security and 2.9% for Medicare, applied to 92.35% of your net profit (the IRS treats that as your net earnings from self-employment). Example for 2026 with $100,000 of net profit: net earnings are $92,350.00, Social Security tax is $11,451.40, Medicare tax is $2,678.15, and the self-employment tax is $14,129.55, or 14.13% of the profit. You can then deduct half of it, $7,064.78, when you work out income tax.
What is the Social Security wage base for self-employment?
Social Security tax stops once your earnings reach the annual limit: $184,500 for 2026 and $176,100 for 2025, according to the Social Security Administration. Medicare tax has no limit. Example for 2026 with $250,000 of net profit: net earnings are $230,875, Social Security is capped at 12.4% of $184,500 = $22,878.00, Medicare is 2.9% of $230,875 = $6,695.38, so self-employment tax is $29,573.38.
How does a W-2 job change my self-employment tax?
W-2 wages use up part of the Social Security limit, so less of your business profit is taxed at 12.4%. Example for 2026: $150,000 of W-2 wages and $100,000 of net profit. Room under the $184,500 limit is $34,500, so Social Security tax is 12.4% × $34,500 = $4,278.00, and with Medicare the self-employment tax is $6,956.15, compared with $14,129.55 without the W-2 job. The W-2 wages also count towards the Additional Medicare Tax threshold.
What is the Additional Medicare Tax?
An extra 0.9% on Medicare wages plus self-employment income above $200,000 for single, head of household and qualifying surviving spouse filers, $250,000 for married filing jointly and $125,000 for married filing separately. These thresholds are not adjusted for inflation. Example for 2026, single, $250,000 of net profit: net earnings of $230,875 are $30,875 over the threshold, so the tax is $277.88, bringing the total to $29,851.25. You report it on Form 8959 and cannot deduct it.
Do I owe self-employment tax on a small profit?
Only if your net earnings from self-employment, which is net profit × 92.35%, are $400 or more. A profit of $400 gives net earnings of $369.40 and no self-employment tax. A profit of $440 gives net earnings of $406.34 and a tax of $62.17. A loss owes no self-employment tax.
Does this include income tax?
No. Self-employment tax is separate from income tax and pays for Social Security and Medicare. You also owe income tax on your profit, and you get to deduct half of the self-employment tax (Schedule SE line 13) when you work that out. Use the federal tax bracket calculator for the income tax part.

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