Calculate the self-employment tax you owe on freelance, gig or small-business profit in 2026. On $80,000 of net profit, self-employment tax is $11,303.64: Social Security and Medicare on 92.35% of your profit, with half of it deductible from your income.
Self-Employment Tax Calculator 2026
Social Security and Medicare for freelancers and sole proprietors · Updated October 12, 2026
- Net earnings subject to SE tax (92.35%)
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- Social Security part (12.4%)
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- Medicare part (2.9%)
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- Additional Medicare tax (0.9%)
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- Deductible half of SE tax
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- Quarterly estimate for SE tax
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Income tax is separate. Pay both through quarterly estimated taxes to avoid underpayment penalties.
How self-employment tax works
- Net earnings subject to the tax = net profit × 92.35%. You owe nothing if this is under $400.
- Social Security: 12.4% on net earnings up to the 2026 wage base of $184,500, reduced by any W-2 wages you also earned.
- Medicare: 2.9% on all net earnings, plus an additional 0.9% above $200,000 (single), $250,000 (married filing jointly) or $125,000 (married filing separately), counting wages and self-employment income together.
- You can deduct half of the Social Security and Medicare tax (not the additional 0.9%) when working out your adjusted gross income.
Examples
| Net profit | SE tax | Deductible half | Quarterly payment |
|---|---|---|---|
| $20,000 | $2,825.91 | $1,412.96 | $706.48 |
| $50,000 | $7,064.77 | $3,532.39 | $1,766.19 |
| $80,000 | $11,303.64 | $5,651.82 | $2,825.91 |
| $150,000 | $21,194.32 | $10,597.16 | $5,298.58 |
| $250,000 | $29,851.25 | $14,786.69 | $7,462.81 |
Paying it during the year
Self-employment tax is paid with your income tax through quarterly estimated payments, due in mid-April, mid-June, mid-September and mid-January. Setting aside a percentage of each payment you receive, such as 25% to 30% for SE tax plus income tax, makes those payments easier.
FAQ
Do I pay this if I also have a job?
Yes. Your W-2 wages use up part of the Social Security wage base first, so if your wages are high you may owe only the Medicare part on your side income.
Can I lower my self-employment tax?
Claiming every legitimate business expense reduces net profit and therefore the tax. Retirement contributions such as a SEP IRA or solo 401(k) reduce income tax but not self-employment tax. Some owners elect S corporation status to pay part of their income as distributions, which has its own costs and rules.
Related calculators
- Federal Income Tax Calculator 2026Your income tax on top
- Salary to Hourly CalculatorCompare rates and salaries
Sources
- IRS: Self-employment tax (Social Security and Medicare taxes)
- Journal of Accountancy: Social Security wage base and COLA announced for 2026
Figures current as of October 12, 2026
Each formula is checked against a separate test sheet with at least three worked examples. Results are estimates based on the numbers you enter and the published rules; your actual figures may differ. This is general information, not financial or tax advice.
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