Self-Employment Tax Calculator 2026
Calculate your Social Security and Medicare taxes as a freelancer, independent contractor, or sole proprietor. See the step-by-step breakdown with IRS formula citations.
Last updated: · IRS Publication 334, Schedule SE; SS wage base per IRS Rev. Proc. 2025-32; FICA rates per SSA
On $80,000 of net self-employment income filing as Single in 2026, your estimated self-employment tax is $11,303.64 (14.1% effective rate). That includes $9,161.12 Social Security and $2,142.52 Medicare. You can deduct $5,651.82 (50%) from your income tax. Quarterly estimated payment: $2,825.91.
$
Results
Total Self-Employment TaxTax year 2026
$11,303.64Social Security Tax12.4% on $73,880
$9,161.12Medicare Tax2.9% on $73,880
$2,142.52Deductible Portion (50%)Reduces your income tax (above-the-line)
$5,651.82Quarterly Estimated PaymentSE tax only (add income tax for total)
$2,825.91Effective SE Tax RateTotal SE tax ÷ net SE income
14.1%QBI Deduction (Section 199A)20% of business income — reduces taxable income (not SE tax)
$16,000.00Social Security
Medicare
After SE Tax
How This Is Calculated
This calculator follows the IRS Schedule SE (Form 1040) methodology for computing self-employment tax under IRC §1401.
Step-by-step formula
- Start with net self-employment income — your Schedule C net profit (gross 1099 income minus all business expenses).
- Multiply by 92.35% (IRC §1402(a)(12)) — this approximates the employer-equivalent deduction that W-2 workers get. Formula:
taxable_base = net_SE_income × 0.9235 - Social Security tax: 12.4% on the taxable base, capped at the wage base ($184,500 for 2026). If you also have W-2 wages, the wage base is reduced by those wages.
- Medicare tax: 2.9% on the entire taxable base (no cap).
- Additional Medicare Tax: 0.9% on the portion of the taxable base exceeding $200,000 (single) or $250,000 (married filing jointly). This threshold is NOT adjusted for inflation.
- 50% deduction: Half of the total SE tax is deductible as an above-the-line deduction (IRC §164(f)), reducing your adjusted gross income for income tax purposes.
Data sources
- SE tax formula: IRS Publication 334 and Schedule SE instructions
- 2026 SS wage base ($184,500): SSA Contribution and Benefit Base and IRS Rev. Proc. 2025-32
- FICA rates: SSA Tax Rate History (unchanged since 1990)
Frequently Asked Questions
- How much is self-employment tax on $80,000?
- On $80,000 of net self-employment income in 2026, you would owe approximately $11,303.64 in self-employment tax. This breaks down to $9,161.12 for Social Security (12.4%) and $2,142.52 for Medicare (2.9%). Your effective SE tax rate is 14.1%. You can deduct $5,651.82 (50%) from your income when calculating income tax.
- What is the self-employment tax rate for 2026?
- The self-employment tax rate for 2026 is 15.3%, which consists of 12.4% for Social Security (on the first $184,500 of net earnings) and 2.9% for Medicare (on all net earnings). An additional 0.9% Medicare tax applies to earnings above $200,000 for single filers or $250,000 for married filing jointly. However, only 92.35% of your net SE income is subject to this tax, so the effective maximum rate is about 14.13%.
- Why is only 92.35% of self-employment income taxed?
- The 92.35% factor (IRC §1402(a)(12)) exists to approximate the tax treatment of regular employees. When you have a W-2 job, your employer pays half of FICA taxes (7.65%), and that employer portion is not included in your taxable wages. The 92.35% factor gives self-employed individuals a similar benefit by reducing the base that SE tax applies to. The math: 100% - (7.65% / 2) = 92.35%.
- Can I deduct self-employment tax from my income?
- Yes, you can deduct 50% of your self-employment tax as an above-the-line deduction (IRC §164(f)). This means it reduces your adjusted gross income (AGI), which in turn reduces your federal income tax. However, it does NOT reduce your self-employment tax itself. For example, if your SE tax is $11,304, you can deduct $5,652 from your income when calculating income tax.
- What is the Social Security wage base for 2026?
- The Social Security wage base for 2026 is $184,500, up from $176,100 in 2025. This means the 12.4% Social Security tax only applies to the first $184,500 of combined wages and self-employment earnings. Income above this amount is still subject to the 2.9% Medicare tax (and potentially the 0.9% Additional Medicare Tax), but not Social Security tax. Source: IRS Revenue Procedure 2025-32.