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Self-Employment Tax Calculator

Calculate Social Security, Medicare, and federal income tax on self-employment income using 2026 IRS rates and brackets.

Self-Employment Income

Uses 2026 IRS rates: SS wage base $184,500, SE tax 15.3%, standard deduction $16,100.

Tax Breakdown

Enter your net profit and click calculate.

What This Calculator Does

This calculator computes the full self-employment tax obligation for independent workers, including Social Security tax, Medicare tax, the additional Medicare surtax, and federal income tax. It uses 2026 IRS rates with the Social Security wage base of $184,500 and progressive federal income tax brackets.

The Formula

SE Tax = (Net Profit x 92.35%) x 15.3% | Federal Tax = Brackets applied to (Net Profit - SE Deduction - Standard Deduction)

Self-employed individuals pay both the employer and employee portions of FICA taxes, totaling 15.3% (12.4% Social Security + 2.9% Medicare). The 92.35% factor mirrors the employee-equivalent calculation. Half of the SE tax is deductible when computing federal income tax. For 2026, the Social Security wage base is $184,500 and the standard deduction is $16,100 for single filers.

Step-by-Step Example

1

Enter net self-employment profit

This is your gross revenue minus all allowable business expenses. Example: $120,000 net profit.

2

Calculate SE taxable income

$120,000 x 92.35% = $110,820. This is the base for FICA taxes.

3

Compute Social Security and Medicare

SS: $110,820 x 12.4% = $13,742. Medicare: $110,820 x 2.9% = $3,214. Total SE tax: $16,956.

4

Calculate federal income tax

Deduct half of SE tax ($8,478) and standard deduction ($16,100) from net profit. Apply 2026 brackets to the remaining taxable income.

Real-World Use Cases

Freelancer Tax Planning

Understand your total tax burden including the often-surprising 15.3% self-employment tax that W-2 employees do not see.

Quarterly Payment Estimation

Divide annual SE tax by four to determine quarterly estimated payment amounts and avoid underpayment penalties.

Business Structure Decisions

Compare SE tax as a sole proprietor versus potential savings from S-Corp election where reasonable salary reduces SE tax exposure.

Common Mistakes to Avoid

  • Forgetting that self-employed workers pay BOTH the employer and employee portions of FICA, totaling 15.3% before income tax.

  • Not applying the 92.35% adjustment factor before calculating SE tax. The IRS requires this to mirror employee-equivalent treatment.

  • Overlooking the additional 0.9% Medicare surtax on SE income above $200,000.

  • Failing to deduct half of SE tax from adjusted gross income before calculating federal income tax.

Frequently Asked Questions

Accuracy and Disclaimer

This calculator provides estimates using 2026 federal rates and brackets. It does not account for state taxes, tax credits, retirement contribution deductions, health insurance deductions, or other individual circumstances. Consult a licensed CPA or tax professional for personalized tax advice.