Self-employment tax calculator for 2026
Self-employment tax is 15.3% of 92.35% of your net profit: 12.4% for Social Security up to the $184,500 wage base for 2026, and 2.9% for Medicare with no cap. Enter your profit, and any W-2 wages, to see what you owe and the half you deduct.
Updated November 2026
Calculator
Federal self-employment tax only. Income tax is separate. The 0.9% additional Medicare tax is figured on Form 8959. An estimate, not tax advice.
How is self-employment tax calculated?
Start with your net profit from Schedule C, or your share of partnership earnings. Multiply it by 92.35%. That's the amount the tax applies to, because the IRS lets you leave out the share an employer would normally pay. Then apply 12.4% for Social Security and 2.9% for Medicare.
The Social Security part stops at the yearly wage base, $184,500 for 2026. If you also have a W-2 job, those wages count toward the cap first, so your self-employment income may hit it sooner. Medicare has no cap, and an extra 0.9% applies once your combined earnings pass $200,000 single or $250,000 married filing jointly.
What does the tax look like at different profits?
| Net profit | Earnings taxed (92.35%) | Self-employment tax | Half you deduct |
|---|---|---|---|
| $30,000 | $27,705 | $4,239 | $2,119 |
| $60,000 | $55,410 | $8,478 | $4,239 |
| $100,000 | $92,350 | $14,130 | $7,065 |
| $200,000 | $184,700 | $28,234 | $14,117 |
How do I lower my self-employment tax?
- Track every business expense. Each dollar of expense cuts the profit the tax applies to.
- Look at an S-Corp election once profit is steady. You pay payroll tax on a reasonable salary instead of on all the profit. Try our S-Corp calculator.
- Use a retirement plan. Contributions don't reduce self-employment tax, but they cut income tax on the same profit.
- Pay quarterly. It doesn't lower the tax, but it avoids the underpayment penalty. Our quarterly tax calculator works out the payments.
Sources
- IRS: Self-employment tax
- IRS: Schedule SE (Form 1040)
- Social Security Administration: Contribution and benefit base
General information, not tax advice for your situation.
Do I pay self-employment tax if I made less than $400?
No. If your net earnings from self-employment are under $400, you don't owe self-employment tax, though you may still need to file a return for income tax.
Is self-employment tax the same as income tax?
No. It's Social Security and Medicare for people who work for themselves. You pay income tax on the same profit too, at your regular rates.
Can I deduct self-employment tax?
Half of it. You deduct the employer-equivalent half on your Form 1040, which lowers your income tax but not the self-employment tax itself.
Does my W-2 job change my self-employment tax?
It can. Your wages count toward the $184,500 Social Security cap first, so if they're high, less of your business profit is hit by the 12.4% part.
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