Self-Employment Tax Calculator (2026)
If you're a sole proprietor, freelancer, or partner with net self-employment earnings of $400 or more, you owe Self-Employment Tax — basically the FICA tax both halves combined. The calculator runs the Schedule SE math: 92.35% adjustment, 12.4% Social Security up to the wage base, 2.9% Medicare on all of it, plus 0.9% Additional Medicare for high earners.
How is this calculated?
Schedule SE: net earnings × 0.9235 = adjusted earnings (this represents the ‘employer half’ of FICA being notionally deducted before SE tax is applied). Social Security tax: 12.4% × min(adjusted earnings, $176,100 − any W-2 SS wages). Medicare tax: 2.9% × adjusted earnings (no cap). Additional Medicare: 0.9% × max(0, (W-2 wages + adjusted SE earnings) − filing-status threshold). One half of total SE tax is deductible against AGI on Schedule 1 — partial offset for the fact you’re paying both employee and employer halves.
Frequently Asked Questions
Do I have to pay Self-Employment Tax?
Yes if your net self-employment earnings are $400 or more in the tax year. This is a separate calculation from federal income tax — you owe SE tax on the same earnings, plus federal income tax on those earnings, even though half of SE tax is deductible against your AGI.
Why the 92.35% adjustment?
Self-employed people effectively pay both the employee and employer halves of FICA. The 92.35% figure (= 100% / (1 + 0.0765)) approximately removes the employer share before applying the combined 15.3% SE tax — a parity calculation so you don't end up paying SE tax on money that, conceptually, would have been employer-paid FICA.
What if I also have W-2 income?
W-2 wages already subject to Social Security tax count toward the $176,100 wage base. If you've already maxed it on W-2 income, your SE tax owes only the 2.9% Medicare component (plus Additional Medicare if applicable). Enter W-2 SS wages in the optional field.
Are there ways to reduce SE tax?
(a) Maximise legitimate Schedule C business expenses to reduce net earnings. (b) Form an S-corp and pay yourself a 'reasonable salary' as W-2 wages plus distributions (distributions don't attract SE tax, but the IRS scrutinises low salaries). (c) Set up a SEP-IRA or Solo 401(k) — those reduce federal taxable income but NOT SE tax. There's no easy 'avoid SE tax' option for typical sole-props.
When do I pay SE tax?
Self-employed people generally make estimated quarterly tax payments (Form 1040-ES) — due 15 April, 15 June, 15 September, and 15 January (of the following year). The amount should cover both income tax AND SE tax for the year. Annual reconciliation happens when you file your 1040 + Schedule SE.
Last updated: May 2026 · Rates sourced from IRS