Calculator
Self employment tax calculator
Schedule SE for 2026, with Form 8959 Additional Medicare Tax.
2026 self-employment tax$8,477.7314.13% of net profit · deduct $4,238.87
| Net profit (Schedule C) | $60,000.00 |
|---|---|
| Net earnings × 92.35% | $55,410.00 |
| Schedule SE | |
| Social security 12.4% on $55,410 | $6,870.84 |
| Medicare 2.9% | $1,606.89 |
| Self-employment tax | $8,477.73 |
| Deductible half (Schedule 1) | $4,238.87 |
| Set aside per quarter (÷ 4) | $2,119.43 |
Federal income tax on the same profit is separate; the deductible half lowers your adjusted gross income, not the SE tax itself.
How self-employment tax is calculated
Self-employment tax is Social Security and Medicare for people who work for themselves: 12.4% plus 2.9%, the employee and employer shares combined[tc554]. Schedule SE for 2026 figures it in five steps[schse]:
- Net earnings = net profit × 92.35% (line 4a). $60,000 × 0.9235 = $55,410.00. If this is under $400, you owe no self-employment tax (line 4c).
- Social Security room = $184,500 − W-2 Social Security wages (lines 7–9). With no job, the full $184,500.
- Social Security = 12.4% × the smaller of net earnings or that room (line 10): $6,870.84.
- Medicare = 2.9% × all net earnings (line 11): $1,606.89.
- Self-employment tax = lines 10 + 11 = $8,477.73 (line 12). Half, $4,238.87, goes on Schedule 1 as an adjustment to income (line 13).
The 92.35% factor is 100% minus 7.65%, the employer half of the 15.3% rate. The $184,500 cap is the 2026 Social Security contribution and benefit base[ssa]; for 2027 the Social Security Administration has set it at $192,300.
Self-employment tax at common profit levels
| Net profit | Net earnings (92.35%) | Social Security 12.4% | Medicare 2.9% | SE tax | Deductible half |
|---|---|---|---|---|---|
| $5,000 | $4,618 | $572.57 | $133.91 | $706.48 | $353.24 |
| $20,000 | $18,470 | $2,290.28 | $535.63 | $2,825.91 | $1,412.96 |
| $40,000 | $36,940 | $4,580.56 | $1,071.26 | $5,651.82 | $2,825.91 |
| $60,000 | $55,410 | $6,870.84 | $1,606.89 | $8,477.73 | $4,238.87 |
| $80,000 | $73,880 | $9,161.12 | $2,142.52 | $11,303.64 | $5,651.82 |
| $100,000 | $92,350 | $11,451.40 | $2,678.15 | $14,129.55 | $7,064.78 |
| $150,000 | $138,525 | $17,177.10 | $4,017.23 | $21,194.32 | $10,597.16 |
| $200,000 | $184,700 | $22,878.00 | $5,356.30 | $28,234.30 | $14,117.15 |
| $250,000 | $230,875 | $22,878.00 | $6,695.38 | $29,573.38 | $14,786.69 |
Above $199,783 of profit, net earnings pass $184,500 and the Social Security part stops growing at $22,878.00; only the 2.9% Medicare part keeps rising. That is why the effective rate falls from 14.13% of profit at $100,000 to 11.83% at $250,000.
Self-employment tax with a W-2 job
Wages from a job use up the Social Security cap first, so a side business pays the 12.4% only on the room left. With $150,000 of W-2 wages and $60,000 of side profit, only $34,500 of the $55,410 net earnings gets Social Security tax: $4,278.00 plus $1,606.89 Medicare, $5,884.89 in total instead of $8,477.73.
The 0.9% Additional Medicare Tax applies to self-employment income above $200,000 ($250,000 married filing jointly, $125,000 married filing separately), and that threshold is first reduced by your Medicare wages; a self-employment loss does not reduce it[i8959]. A single filer with $120,000 of wages and $150,000 of profit has $138,525 of net earnings, of which $58,525 is above the reduced $80,000 threshold: $526.72 of Additional Medicare Tax on Form 8959. Unlike SE tax, none of it is deductible.
Who has to pay and how
- The $400 rule: you file Schedule SE if net earnings from self-employment are $400 or more[tc554]. Church employees owe it when church wages are more than $108.28.
- Where it goes: Schedule SE line 12 flows to Schedule 2 (Form 1040), line 4; the deductible half goes to Schedule 1, line 15[schse].
- Optional methods: farmers and people with small nonfarm profits can elect the farm or nonfarm optional method, which counts up to $7,560 of net earnings for 2026[ischse].
- When to pay: nothing is withheld, so self-employment tax is usually paid through quarterly estimates. The quarterly tax calculator works out the four 2026 payments.
Common mistakes
- Multiplying 15.3% by the whole profit. On $60,000 that gives $9,180 instead of $8,478; the 92.35% step comes first.
- Taking the deductible half off SE tax. The $4,238.87 lowers adjusted gross income for income tax; it does not shrink the self-employment tax itself.
- Ignoring income tax. SE tax is on top of federal income tax on the same profit. The tax bracket calculator shows the income tax part.
- Paying Social Security above the cap. If you have a job too, enter your W-2 wages so the cap is shared.
Employees pay halfOn a W-2 paycheck you pay 7.65% and your employer pays the other 7.65%. Compare a salaried job with the paycheck calculator, or a commission-based role with the commission calculator. Gains from selling investments are not self-employment income; the capital gains tax calculator covers those.
Frequently asked questions
How much is self-employment tax in 2026?
15.3% of net earnings, which are 92.35% of net profit: 12.4% for Social Security on up to $184,500 and 2.9% for Medicare with no cap. That works out to about 14.13% of profit below roughly $199,800 of profit.
How do I calculate self employment tax?
Multiply net profit by 92.35%, then multiply by 12.4% (up to the $184,500 cap, less any W-2 Social Security wages) and by 2.9%, and add the two. A self employment tax calculator does this in one step and also shows the deductible half.
Do I pay self-employment tax if I also have a W-2 job?
Yes, on your business profit. But W-2 wages count toward the $184,500 Social Security cap first, so if your wages are $184,500 or more you pay only the 2.9% Medicare part on self-employment earnings.
Is self-employment tax deductible?
Half of it is. You deduct 50% of Schedule SE line 12 on Schedule 1, which lowers your adjusted gross income and income tax but not the self-employment tax.