Self-Employment Tax Calculator (US)
Your 2026 self-employment tax for Social Security and Medicare, and the deduction.
Good to know. Self-employed people pay both halves of Social Security and Medicare: the employee’s and the boss’s.
Not financial advice. Uses only the numbers and rates you enter — no live data.
How it works
In plain words
Self-employment tax is charged on 92.35% of net profit: 12.4% for Social Security, up to the yearly wage base, and 2.9% for Medicare, 15.3% in total. Half of it is deductible when working out income tax.
The formula
earnings = profit × 92.35% Social Security = min(earnings, 184,500 − wages) × 12.4% Medicare = earnings × 2.9% deduction = (Social Security + Medicare) ÷ 2
Worked example
On 60,000 of profit, 92.35% is 55,410. 12.4% for Social Security is 6,870.84 and 2.9% for Medicare is 1,606.89: 8,477.73 in total, of which half is deductible.
Sources
- IRS, Self-employment tax (Social Security and Medicare taxes) The 15.3% rate, the 92.35% base and the deductible half.
- Social Security Administration, contribution and benefit base The 2026 wage base, $184,500.
Sources checked September 30, 2026. 4 automated tests check its answers on every change.
About the self-employment tax calculator (US)
Employees see Social Security and Medicare taken from each paycheck, and their employer pays the same again. Self-employed people, freelancers, 1099 contractors and gig workers pay both halves themselves, as self-employment tax. It comes on top of income tax, and it is often the bigger surprise in a first year of freelancing.
The tax is 15.3% of 92.35% of net profit: your income minus business expenses. The 92.35% mirrors the employer’s half being deductible for a company. Social Security’s 12.4% stops at the 2026 wage base of $184,500, counting any wages from a job first; Medicare’s 2.9% has no cap, and an extra 0.9% applies above $200,000 ($250,000 married filing jointly).
Half of the self-employment tax is deducted from your income before income tax, which softens it a little. Nothing is due if your net earnings are under $400.
Nobody withholds tax from self-employment income, so the IRS expects quarterly estimated payments, in April, June, September and January, covering both self-employment and income tax. The per-quarter figure here covers only self-employment tax; add your income tax, which the federal income tax calculator estimates. Setting aside 25 to 30% of every payment is a common rule of thumb.
Questions people ask
What is the self-employment tax rate?
15.3%: 12.4% for Social Security and 2.9% for Medicare, charged on 92.35% of net profit. That works out at about 14.1% of profit.
How much tax do I pay on 60,000 of 1099 income?
About 8,478 in self-employment tax, if that is your profit after expenses, plus federal and state income tax.
Is self-employment tax deductible?
Half of it is, as an adjustment to income on Schedule 1. It lowers your income tax but not the self-employment tax itself.
Do I pay self-employment tax if I also have a job?
Yes, but Social Security stops once your wages and self-employment earnings together reach $184,500.