Self-Employment Tax Calculator
Work out the 15.3% self-employment tax on your freelance income (2026).
Your numbers
Your business profit after expenses.
Self-employment tax
- Taxable base (92.35%)
- $46,175.00
- Social Security (12.4%)
- $5,725.70
- Medicare (2.9%)
- $1,339.08
- Total SE tax
- $7,064.78
- Deductible half
- $3,532.39
If you're a freelancer or run your own business, you pay a tax that employees never see in full: self-employment (SE) tax. It's the self-employed version of the Social Security and Medicare taxes that are normally split between employer and employee — and as your own boss, you owe both halves. Here's how it works in 2026.
What is self-employment tax?
SE tax is 15.3% of your net self-employment earnings:
- 12.4% for Social Security
- 2.9% for Medicare
Employees pay half of this (7.65%) through payroll, and their employer pays the other half. When you're self-employed, you're both — so you cover the full 15.3%.
It's calculated on 92.35% of your earnings
You don't pay SE tax on your full profit. First, multiply your net earnings by 92.35% (this approximates the employer-half deduction employees get). That result is your SE tax base.
For $50,000 of net earnings: 50,000 × 0.9235 = $46,175 base. Then:
- Social Security:
12.4% × 46,175 = $5,725.70 - Medicare:
2.9% × 46,175 = $1,339.08 - Total SE tax ≈ $7,065
The Self-Employment Tax Calculator does this instantly.
The Social Security cap
The 12.4% Social Security portion only applies up to the 2026 wage base of $184,500. Earnings above that are not subject to Social Security tax — but the 2.9% Medicare portion has no cap, and an extra 0.9% applies above $200,000.
Half of it is deductible
Here's the relief: you can deduct half of your SE tax (the "employer-equivalent" portion) from your income for income-tax purposes. On a $7,065 SE tax, that's about $3,532 off your taxable income. It doesn't reduce the SE tax itself, but it lowers your income tax.
SE tax is on top of income tax
A common shock for new freelancers: SE tax is separate from and in addition to federal income tax. You owe both on your business profit. Budget for both — many freelancers set aside 25–30% of profit for taxes.
Pay it quarterly
Because no employer withholds for you, the IRS expects quarterly estimated payments. Missing them can trigger penalties, so calculate your expected SE tax plus income tax and pay four times a year.
The bottom line
Self-employment tax is 15.3% on 92.35% of your net earnings — Social Security (capped) plus Medicare (uncapped) — and half of it is deductible against income tax. Estimate yours in the Self-Employment Tax Calculator, set aside for it, and pay quarterly. For setting rates that cover these taxes, see our freelance rate calculator.
Frequently asked questions
What is the self-employment tax rate?
It’s 15.3% — 12.4% for Social Security and 2.9% for Medicare. It covers both the employee and employer halves of payroll tax, which is why the self-employed pay the full amount.
How is self-employment tax calculated?
Multiply your net earnings by 92.35% to get the SE tax base, then apply 12.4% Social Security (up to the $184,500 wage base in 2026) and 2.9% Medicare. On $50,000 net, that’s about $7,065.
Why is SE tax based on 92.35% of earnings?
The 92.35% factor approximates the deduction employees effectively get because their employer’s half of payroll tax isn’t counted as their income. It slightly lowers the base your SE tax is calculated on.
Can I deduct self-employment tax?
You can deduct half of your SE tax (the employer-equivalent portion) from your income for income-tax purposes. It doesn’t reduce the SE tax itself, but it lowers your taxable income and therefore your income tax.
Is self-employment tax in addition to income tax?
Yes. SE tax is separate from and on top of federal income tax. You owe both on your business profit, which is why many freelancers set aside 25–30% of their income for taxes.
Do I have to pay quarterly estimated taxes?
Usually, yes. Since no employer withholds for you, the IRS expects quarterly estimated payments covering your SE tax and income tax. Missing them can trigger underpayment penalties.
When do I owe self-employment tax?
Generally once your net self-employment earnings reach $400 in a year. Below that, you typically don’t owe SE tax, though you may still owe income tax.
How can I reduce my self-employment tax?
Deduct all legitimate business expenses to lower your net earnings, contribute to a retirement plan, and — at higher incomes — consider whether an S-corp election could reduce the earnings subject to SE tax. Consult a tax professional first.