Self-Employment Tax Calculator
For freelancers, contractors and gig workers paid on a 1099. See how much Social Security and Medicare tax you owe, what to set aside each quarter, and the deduction you get back.
Self-employment tax for the year
$7,064.78
About $1,766.20 per quarter · 14.1% of net profit
| Net profit (income − expenses) | $50,000.00 |
|---|---|
| Taxable earnings (92.35% of profit) | $46,175.00 |
| Social Security (12.4%) | $5,725.70 |
| Medicare (2.9%) | $1,339.08 |
| Additional Medicare (0.9%) | $0.00 |
| Self-employment tax | $7,064.78 |
You can deduct $3,532.39 (half of the Social Security and Medicare parts) from your income on Schedule 1, which lowers your income tax.
No self-employment tax is due when 92.35% of your net profit is under $400.
How is self-employment tax calculated?
When you work for an employer, they pay half of your Social Security and Medicare tax and you pay the other half. When you work for yourself, you pay both halves. That combined 15.3% is the self-employment tax.
- Work out your net profit: your self-employment income minus your business expenses.
- Take 92.35% of it. This mirrors the employer half that W-2 workers don’t pay tax on.
- Apply 12.4% for Social Security on up to $184,500 in 2026 (less any W-2 wages you earned).
- Apply 2.9% for Medicare on all of it, plus 0.9% above $200,000 ($250,000 married).
- Deduct half of the Social Security and Medicare parts when you work out your income tax.
Self-employment tax at different incomes
| Net profit | SE tax | Per quarter | You can deduct |
|---|---|---|---|
| $20,000 | $2,826 | $706 | $1,413 |
| $40,000 | $5,652 | $1,413 | $2,826 |
| $60,000 | $8,478 | $2,119 | $4,239 |
| $100,000 | $14,130 | $3,532 | $7,065 |
| $200,000 | $28,234 | $7,059 | $14,117 |
Single filer with no W-2 wages. Income tax is extra and depends on your bracket.
Paying it: quarterly estimated taxes
No employer withholds tax from 1099 income, so the IRS expects you to pay during the year with estimated payments, usually if you’ll owe $1,000 or more. For the 2026 tax year the due dates are April 15, June 15 and September 15, 2026, and January 15, 2027. Remember to set aside money for income tax as well as self-employment tax: the 1099 tax calculator adds income tax and works out each quarterly payment.
Driving or delivering? Use a calculator with your mileage built in: DoorDash, Uber, Lyft, Instacart, Amazon Flex.
Frequently asked questions
What is the self-employment tax rate for 2026?
15.3% of 92.35% of your net profit: 12.4% for Social Security on earnings up to $184,500, plus 2.9% for Medicare on all earnings. An extra 0.9% Medicare tax applies above $200,000 ($250,000 for married couples filing jointly).
How much self-employment tax do I pay on $60,000?
On $60,000 of net profit you pay about $8,478 in self-employment tax in 2026, roughly $2,119 a quarter. You can then deduct $4,239, half of it, from your income for income tax purposes.
Do I have to pay self-employment tax if I earn under $400?
No. If 92.35% of your net self-employment profit is less than $400, you don’t owe self-employment tax, although you may still owe income tax.
Is self-employment tax the same as income tax?
No. Self-employment tax is your Social Security and Medicare contribution. You pay income tax on top of it, based on your total taxable income and tax bracket.
Does having a W-2 job change my self-employment tax?
Yes, if your combined earnings are high. Your W-2 wages count toward the $184,500 Social Security limit first, so you pay less Social Security tax on your side income once your total passes that limit.
Sources
- IRS Topic 554: Self-employment tax
- IRS: About Schedule SE (Form 1040)
- IRS: About Form 8959 (Additional Medicare Tax)
- SSA: 2026 Social Security wage base
Estimates only, not tax advice. This calculator covers self-employment tax, not income tax. Your actual tax depends on your full return.
Built and checked by the WageSimply team, led by Engr. Zakir, an engineer and Google-certified data analyst. Updated for the 2026 tax year and last reviewed .