Self-Employment Tax Calculator

The SE tax rate is 15.3% composed of 12.4% Social Security and 2.9% Medicare. However, it applies to only 92.35% of net self-employment income, not 100%. This adjustment accounts for the fact that employees only pay half of FICA while employers pay the other half. The effective rate on gross SE income is approximately 14.13% (15.3% × 0.9235).

The 2026 SS wage base is $184,500, up from $176,100 in 2025. The 12.4% Social Security portion of SE tax only applies to the first $184,500 of SE tax base (net income × 92.35%). Income above this threshold is subject only to the 2.9% Medicare tax. If you also have W-2 wages, they count first against the $184,500 limit.

The 92.35% multiplier (= 1 minus 7.65%) adjusts for the fact that the employer half of FICA is deductible as a business expense. For employees, employers pay 7.65% of gross wages as their FICA contribution. Self-employed individuals effectively pay both sides, but the IRS allows you to treat the employer portion as if it were deducted from income first. This reduces the SE tax base to 92.35% of net income.

You can deduct 50% of your SE tax from your gross income when calculating adjusted gross income (AGI). This is an above-the-line deduction — you get it whether or not you itemize. On $80,000 net SE income, SE tax is roughly $11,304. The 50% deduction is $5,652, reducing your AGI. At a 22% marginal rate, this saves approximately $1,243 in income tax.

The 2026 quarterly estimated tax deadlines are: Q1 — April 15, 2026 · Q2 — June 15, 2026 · Q3 — September 15, 2026 · Q4 — January 15, 2027. To avoid underpayment penalties, pay the lesser of 90% of current year tax or 100% of prior year tax (110% if prior year AGI exceeded $150,000).

Yes. Solo 401(k) and SEP-IRA contributions reduce your net self-employment income before SE tax is calculated. The 2026 Solo 401(k) employee contribution limit is $24,500 ($32,500 if age 50+). The employer contribution is up to 25% of net SE income. Total contributions (employee + employer) cannot exceed $70,000 in 2026. A $20,000 Solo 401(k) contribution saves roughly $2,844 in SE tax and additional income tax on top of that.

Your W-2 wages count first against the $184,500 Social Security wage base. If your W-2 wages already exceed $184,500, you owe no SS portion of SE tax on your self-employment income — only the 2.9% Medicare portion. Both income sources are added together for income tax purposes. This calculator applies W-2 wages against the SS wage base in the correct order as required by Schedule SE.

No. S-Corp distributions are not subject to self-employment tax or payroll taxes. Only your W-2 salary from the S-Corp is subject to payroll taxes (SS and Medicare). This is why S-Corps are popular for higher earners: by paying yourself a reasonable salary and taking the rest as distributions, you can reduce SE tax. The IRS requires the salary to be reasonable — not artificially low to avoid payroll taxes.

Yes. Self-employed individuals can deduct 100% of health insurance premiums for themselves, a spouse, and dependents as an above-the-line deduction from gross income. This reduces AGI but not SE tax. The deduction is not available for any month you were eligible to participate in an employer-subsidized plan (including your spouse's employer plan). Add health insurance premiums to the “Additional Deductions” field above to see the impact.

You need Schedule C (profit or loss from business) to report net self-employment income, and Schedule SE (Self-Employment Tax) to calculate the SE tax itself. Both attach to Form 1040. If you have business income above $400, you must file Schedule SE. The SE deduction flows to Form 1040 Schedule 1, Line 15. Quarterly payments are made using Form 1040-ES.