Self-Employment Tax Calculator: Estimate Your 2026 SE Tax
This self-employment tax calculator estimates the Social Security and Medicare tax that freelancers, contractors, and sole proprietors pay on their own earnings for tax year 2026. Enter your net self-employment earnings, and it follows the Schedule SE steps to show the tax, how it splits between Social Security and Medicare, and the half you can deduct.
Self-Employment Tax Calculator
Estimated self-employment tax
Under these assumptions, $50,000.00 of net self-employment earnings could mean about $7,064.78 of self-employment tax for 2026, an effective rate of 14.13%. Half of it, $3,532.39, could be deducted when figuring adjusted gross income.
- Social Security part (12.4%)
- Medicare part (2.9%)
- Additional Medicare Tax (0.9%, separate)
- Deductible half of SE tax
- Effective SE tax rate on net earnings
- Earnings subject to SE tax (92.35%)
Where the Tax Comes From
| Step | Amount |
|---|---|
| Net earnings from self-employment | $50,000.00 |
| Times 92.35% (amount subject to SE tax) | $46,175.00 |
| Social Security room under the $184,500 wage base | $184,500.00 |
| Earnings taxed for Social Security | $46,175.00 |
| Social Security tax at 12.4% | $5,725.70 |
| Medicare tax at 2.9% | $1,339.08 |
| Self-employment tax | $7,064.78 |
| Deductible half of SE tax | $3,532.39 |
| Additional Medicare Tax at 0.9% (separate) | $0.00 |
Sources: IRS Topic 554 (92.35%, the $400 minimum, and the deductible half), Topic 751 and Publication 15 (2026) for the $184,500 Social Security wage base, and Topic 560 for Additional Medicare Tax thresholds.
Assumptions
- Uses 2026 rates: 12.4% Social Security up to the $184,500 wage base and 2.9% Medicare on all SE earnings, applied to 92.35% of net earnings.
- No SE tax is estimated when net earnings times 92.35% are under $400.
- W-2 wages are assumed to be fully subject to Social Security and Medicare tax.
- The Additional Medicare Tax is shown separately and is not part of the deductible half.
- Income tax, state tax, the optional methods, church employee income, and farm income rules are not modeled.
Educational estimate only. This calculator uses the assumptions you enter to illustrate a possible financial outcome. It does not predict future investment performance, interest rates, inflation, taxes, market prices, or financial results. Actual outcomes may differ.
Tax calculations are simplified estimates for educational purposes and do not replace tax advice. Federal and state rules can change, and individual circumstances vary.
How Self-Employment Tax Is Calculated
Employees split Social Security and Medicare tax with their employer. Self-employed people pay both halves, which is why the combined rate is 15.3%: 12.4% for Social Security and 2.9% for Medicare.
The tax does not apply to every dollar of profit. According to IRS Topic 554, "the amount subject to self-employment tax is 92.35% of your net earnings from self-employment," and you usually owe the tax only when net earnings are $400 or more. The calculator applies those steps in order:
- Net Earnings: Business or 1099 income minus ordinary and necessary business expenses.
- Taxable Base: Net earnings times 92.35%.
- Social Security Part: 12.4% of the taxable base, up to the wage base.
- Medicare Part: 2.9% of the whole taxable base, with no cap.
With $50,000 of net earnings, the taxable base is $46,175. Social Security tax is $5,725.70, Medicare tax is $1,339.08, and the total self-employment tax is $7,064.78, an effective rate of about 14.1% of net earnings. These are Fin Loom calculations from the 2026 rates.
The 2026 Social Security Wage Base
Social Security tax stops once combined wages and self-employment earnings reach the annual wage base. For 2026, IRS Topic 751 puts that limit at $184,500. Medicare tax has no limit.
If you also have a job, the W-2 wages already taxed for Social Security use up part of that $184,500. The calculator subtracts them before applying the 12.4% rate, so a person with $150,000 in wages has only $34,500 of room left for self-employment earnings.
Additional Medicare Tax
A separate 0.9% Additional Medicare Tax applies when self-employment income, together with wages, passes $200,000 for single and head of household filers, $250,000 for married couples filing jointly, or $125,000 for married filing separately. The calculator shows it on its own line because it is not part of the self-employment tax you can deduct.
The Deductible Half
You can deduct half of your self-employment tax when figuring adjusted gross income. That deduction lowers income tax, not the self-employment tax itself. In the $50,000 example, the deductible half is $3,532.39. To see how that deduction and the income tax brackets combine with self-employment tax, the 1099 tax calculator estimates the full amount to set aside from freelance income.
What This Calculator Leaves Out
The estimate covers self-employment tax only. It does not include income tax, state tax, the farm and nonfarm optional methods, church employee income, or partnership rules. It assumes any W-2 wages you enter were fully subject to Social Security and Medicare.
More Fin Loom Calculators
This tool is part of Fin Loom's set of financial calculators and reference tools, which covers taxes, inflation, compound interest, investment growth, dividends, withdrawals, and stock trades.
Frequently Asked Questions
What Is the Self-Employment Tax Rate for 2026?
The rate is 15.3%: 12.4% for Social Security on earnings up to $184,500 and 2.9% for Medicare on all earnings, applied to 92.35% of net earnings.
Do I Pay Self-Employment Tax on Small Side Income?
You generally owe it when net earnings from self-employment are $400 or more. Below that, no self-employment tax is usually due.
Does Self-Employment Tax Replace Income Tax?
No. Self-employment tax funds Social Security and Medicare. Income tax is separate and is figured on taxable income after deductions, including half of the self-employment tax.