Self-Employment Tax Calculator
Work out your 15.3% self-employment tax on the 92.35% figure, with the Social Security wage base, the 0.9% surtax, and your quarterly payment.
Self-Employment Tax Calculator
Self-employment income
1099-NEC, 1099-K, and cash receipts before expenses.
Leave at 0 if you already entered net Schedule C profit above.
Other wages and filing
Medicare wages from a job. These use up the Social Security wage base first.
Half of the base self-employment tax is deductible on Schedule 1, which lowers the income your federal tax is figured on.
2026 federal figures. Estimates SE tax only, not federal or state income tax, the QBI deduction, or credits. Assumes all net earnings are non-farm and non-church-employee income, and that any 0.9% surtax on W-2 wages is already withheld by the employer.
How the self-employment tax calculator works
Self-employment tax is Social Security and Medicare for people who don't get a paycheck. Schedule SE runs it in a fixed order. Start with net earnings, meaning business income minus deductible expenses. Multiply that by 92.35%, the adjustment that stands in for the employer share a W-2 worker never sees in their wages. Apply 12.4% for Social Security to the result, but only up to the wage base of $184,500 for 2026 ($176,100 for 2025). Then apply 2.9% for Medicare, which has no cap at all. Above your filing-status threshold, add the 0.9% Additional Medicare tax.
That's why the headline number is 15.3% but the rate you actually feel is closer to 14.13%: 15.3% times 92.35% is 14.13%. The floor matters too. Self-employment tax starts at $400 of net earnings, and the test runs on the 92.35% figure, so a Schedule C profit of roughly $433 or less stays under it. Plenty of calculators test raw profit and get that edge wrong.
How W-2 wages change your self-employment tax
The Social Security wage base is shared across everything you earn, not applied twice. If you have a job alongside the side work, those wages fill the base first. Say you earned $120,000 in W-2 wages in 2026: that leaves $64,500 of the $184,500 base open, so only the first $64,500 of your taxable self-employment income takes the 12.4%. Anything past that is Medicare-only at 2.9%. Once wages reach the base on their own, the Social Security portion of your self-employment tax drops to zero. The wage base explainer walks through where the cutoff lands.
Medicare works the opposite way: no cap, ever, so every dollar of the 92.35% figure takes the 2.9%. The 0.9% surtax has its own twist. On Form 8959, the threshold applied to your self-employment income is reduced (but not below zero) by your Medicare wages, so a well-paid W-2 job can push your entire self-employment profit into the surtax. If you're weighing contract work against a salaried role, the 1099 vs W-2 calculator runs both sides together, and the salary to paycheck calculator shows what the W-2 offer nets per check.
Quarterly estimated payments and the deductible half
Nobody withholds tax from a 1099, so you send it yourself in four installments: April 15, June 15, September 15, and January 15 of the following year. Estimates are generally required if you expect to owe $1,000 or more after withholding and credits. Two safe harbors get you out of the penalty: pay 90% of this year's total tax, or 100% of last year's (110% if your prior-year AGI topped $150,000). One caution about the quarterly figure on this page: it splits self-employment tax only. A real 1040-ES voucher also carries federal income tax, which is why people talk about setting aside 25% to 30%.
The deductible half softens the blow. One half of the base self-employment tax is an adjustment on Schedule 1 of Form 1040, and you get it whether or not you itemize. It reduces the income your federal tax is figured on, not the self-employment tax bill itself. The 0.9% surtax stays out of that half, since it's an employee-only tax with no employer-equivalent share, which is why this calculator leaves it out of the deductible figure. For the rate mechanics, see the Additional Medicare tax explainer.
Self-employment tax vs. running payroll for yourself
A sole proprietor pays 15.3% on the adjusted figure and calls it done. The moment you hire someone, or pay yourself W-2 wages through an S corp, the same money moves through payroll instead: 7.65% withheld from the employee, 7.65% matched by the business, plus FUTA and state SUTA that no sole proprietor pays on their own earnings. The employer cost calculator prices out one hire that way. SUTA and FUTA covers the unemployment side, and Form 941 is where the wage base and 0.9% math show up again on the quarterly return.
Once the team grows past one person, the multi-employee payroll calculator takes the whole roster, and the Payroll Calculator app tracks year-to-date wage bases per employee across all 50 states and DC, so the Social Security cap and the FUTA base stop on time without a spreadsheet to babysit.
Frequently Asked Questions
Common questions about self-employment tax calculator
How is self-employment tax calculated?
Start with net earnings (business income minus deductible expenses), multiply by 92.35%, then apply 12.4% for Social Security and 2.9% for Medicare. The Social Security half stops at the wage base ($184,500 in 2026, $176,100 in 2025); the Medicare half never stops. You owe nothing if the 92.35% figure comes to less than $400. To see the same math next to a salaried offer, use the 1099 vs W-2 calculator.
How much should I set aside for self-employment taxes?
Most people aim for 25% to 30% of net earnings. Self-employment tax alone runs about 14.13% (15.3% applied to the 92.35% figure), federal income tax sits on top of that, and most states want income tax too. If your income is uneven, redo the math after each quarter instead of trusting one flat percentage all year.
Do I have to pay self-employment tax if I made less than $400?
No. Self-employment tax applies once net earnings from self-employment reach $400, and the test runs on the 92.35% figure, not on raw profit. That means a Schedule C profit of about $433 or less stays under the floor ($433 times 0.9235 is $399.88). You may still owe income tax on that money, and you may still need to file a return for other reasons.
Does a W-2 job reduce my self-employment tax?
It reduces the Social Security half only. Wages and net earnings share one wage base, so W-2 wages fill it first: $120,000 of wages leaves $64,500 of the 2026 base open, and only that much of your taxable self-employment income takes the 12.4%. Medicare has no cap, so the 2.9% applies either way. More on the cap in when Social Security tax stops.
Can I deduct half of my self-employment tax?
Yes, as an above-the-line adjustment on Schedule 1 of Form 1040, and you get it whether or not you itemize. It lowers the income your federal tax is figured on, not the self-employment tax bill itself. The 0.9% Additional Medicare tax is not part of the deductible half, because it has no employer-equivalent share.
When are quarterly estimated taxes due?
April 15, June 15, September 15, and January 15 of the following year. You generally need to pay estimates if you expect to owe $1,000 or more after withholding and credits. Paying 90% of this year's tax, or 100% of last year's (110% if your prior-year AGI was over $150,000), keeps the underpayment penalty away.
What is the 0.9% Additional Medicare tax and when does it apply?
It applies to earnings above $200,000 (single or head of household), $250,000 (married filing jointly), or $125,000 (married filing separately). On Form 8959, the threshold applied to your self-employment income is reduced (not below zero) by your Medicare wages, so a W-2 job pushes more of your net earnings into the surtax. Details in the Additional Medicare tax explainer.
Why is self-employment tax 15.3% when employees only pay 7.65%?
An employee pays 7.65% and the employer pays a matching 7.65%. Working for yourself, you are both sides, so you carry all 15.3%. The 92.35% adjustment and the deductible half exist to put you roughly back where a W-2 worker sits after the employer match. See the employer FICA match and the employer cost calculator for the other side of that trade.