Self-Employment Tax Calculator
Estimate the Social Security and Medicare taxes on your business profit, understand the deduction for half of your self-employment tax, and explore a simplified federal income-tax estimate.
Know what to set aside
Enter your business income, deductible expenses, and other wage information to estimate your self-employment tax liability.
Free educational estimate · No account requiredEstimate your self-employment tax
Use annual figures for tax year 2026. Include business expenses only when they are ordinary, necessary, and deductible for your business.
Estimated self-employment tax
Based on your business profit and other details.
Tax breakdown
Annual estimateYour estimated total tax less the payments entered above. This is not a final tax bill.
The federal income-tax figure is a simplified illustration, not a complete Form 1040 calculation. Credits, other adjustments, qualified business income deductions, and many special rules are not fully modeled.
What is self-employment tax?
Self-employment tax generally covers Social Security and Medicare taxes for people who work for themselves. It commonly applies to sole proprietors, independent contractors, and eligible partners with net earnings from self-employment.
Employees generally share Social Security and Medicare taxes with their employers. Self-employed individuals generally pay both portions through self-employment tax, subject to applicable limits and rules.
How self-employment tax is calculated
Find your net profit
Subtract qualifying business expenses from business income. This estimate begins with the annual profit you enter.
Calculate net earnings
Generally, 92.35% of net profit is used to calculate net earnings subject to self-employment tax.
Apply the tax rates
The general rates are 12.4% for Social Security and 2.9% for Medicare, subject to applicable rules and limits.
Consider the deduction
You can generally deduct one-half of self-employment tax when calculating adjusted gross income. This deduction does not reduce the self-employment tax itself.
2026 self-employment tax rates
| Tax component | General rate | Important detail |
|---|---|---|
| Social Security | 12.4% | Applies up to the annual wage base, considering applicable Social Security wages. |
| Medicare | 2.9% | Generally applies to all net earnings subject to self-employment tax. |
| Combined rate | 15.3% | Before applicable wage-base and other adjustments. |
| Net earnings factor | 92.35% | Generally applied to net profit to determine net earnings for SE tax. |
| Social Security wage base | $184,500 | 2026 annual limit for combined covered wages and net earnings. |
Additional Medicare Tax of 0.9% may apply when combined Medicare wages and self-employment income exceed the applicable threshold: generally $200,000 for most individual filers, $250,000 for married filing jointly, and $125,000 for married filing separately.
What counts as business profit?
For many sole proprietors, business profit is business income minus ordinary and necessary business expenses. Examples may include eligible software, business supplies, professional services, and qualifying business-use costs.
Personal expenses generally are not deductible business expenses. The treatment of vehicles, home offices, equipment, retirement contributions, health insurance, and other costs depends on the relevant tax rules and your circumstances.
Self-employment tax vs. federal income tax
These are separate calculations. Self-employment tax generally funds Social Security and Medicare. Federal income tax is calculated using taxable income, filing status, applicable tax rates, and other tax rules.
The deduction for one-half of self-employment tax can reduce adjusted gross income for federal income-tax purposes. It does not mean that half of the self-employment tax is refunded or removed from the self-employment tax calculation.
Do self-employed people need to make estimated tax payments?
Many self-employed taxpayers make quarterly estimated payments because tax is not automatically withheld from business income. Whether payments are required, and how much to pay, depends on expected tax liability, withholding, prior-year tax, and IRS safe-harbor rules.
Use the official IRS estimated taxes guidance to review your situation and payment deadlines.
Frequently asked questions
Who generally pays self-employment tax?
People who work for themselves, including many sole proprietors and independent contractors, generally owe self-employment tax when net earnings from self-employment reach $400 or more. Special rules can apply.
Is self-employment tax always 15.3%?
The general combined rate is 15.3%, consisting of 12.4% Social Security and 2.9% Medicare. The amount you owe may differ because of the Social Security wage base, W-2 wages, Additional Medicare Tax, and other rules.
Can I deduct business expenses?
Ordinary and necessary expenses related to your business may reduce business profit. Personal expenses generally do not qualify. Keep records and review the rules for each type of expense.
Can I deduct half of my self-employment tax?
Generally, you can deduct the employer-equivalent half of self-employment tax as an adjustment when determining adjusted gross income. This deduction does not reduce the self-employment tax itself.
Does this calculator include federal income tax?
It includes an optional simplified federal income-tax illustration using your other income, filing status, a standard deduction, and the deduction for half of self-employment tax. It is not a complete individual income-tax return calculation.
Does this calculator include state taxes?
No. State and local taxes are not included in the estimate. Your state may have separate income taxes, business taxes, or other requirements.
Where can I find official tax rules?
Start with IRS Topic 554 and the official Schedule SE information page.
Official references
Use primary government resources to verify rules for your circumstances:
- IRS Topic 554 — Self-Employment Tax
- IRS Schedule SE (Form 1040)
- IRS Publication 505 — Tax Withholding and Estimated Tax
- Social Security Administration — Contribution and Benefit Base
Tax year shown: 2026. Official rules and individual circumstances may affect your result.
FreeTaxCalculator.us provides general educational information and estimates only. This page is not tax, legal, accounting, financial, or professional advice. It does not replace IRS forms, instructions, or advice from a qualified tax professional.
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