Self-Employment Tax Calculator United States
This self employment tax calculator applies 15.3% (12.4% Social Security to the wage base, 2.9% Medicare) to 92.35% of net earnings, with the deductible half.
What it does
The Self-Employment Tax Calculator works out the SECA tax you owe on your net self-employment earnings for 2026 — 15.3% (12.4% Social Security plus 2.9% Medicare) applied to 92.35% of your net profit — and shows the deductible employer-equivalent half.
Data sources & parameters
The figures below drive this calculator. We keep them aligned with the latest official guidance, and each result recalculates automatically whenever a value changes.
| Parameter | Value | Source | Last updated |
|---|---|---|---|
| Social Security (OASDI) rate | 0.062 | irs.gov | Effective 2026-01-01Made open-ended (was valid to 2026-12-31): the 6.2% OASDI rate is fixed by statute (IRC 3101(a)/3111(a)); unchanged for 2027. audit 2026-09-23 |
| Medicare rate | 0.0145 | irs.gov | Effective 2026-01-01Made open-ended (was valid to 2026-12-31): the 1.45% HI rate is fixed by statute (IRC 3101(b)(1)/3111(b)); unchanged for 2027. audit 2026-09-23 |
| Social Security (OASDI) contribution and benefit base, 2026 | 184,500 | federalregister.gov, ssa.gov | Effective 2026-01-01Auto-update: replaced dead source link |
| Additional Medicare rate | 0.009 | irs.gov | Effective 2026-01-01Made open-ended (was valid to 2026-12-31): the 0.9% Additional Medicare Tax rate is fixed by statute (IRC 3101(b)(2)); unchanged for 2027. audit 2026-09-23 |
| Additional Medicare wage threshold | 200,000 | irs.gov | Effective 2026-01-01Made open-ended (was valid to 2026-12-31): the 200,000 threshold is fixed by statute and not indexed (IRC 3101(b)(2)); unchanged for 2027. audit 2026-09-23 |
| Additional Medicare Tax threshold, MFJ (statutory) | 250,000 | irs.gov | Effective 2026-01-01Fix 2026-10-24: the row went live with country_code AU, so Resolver never saw it and the key fell back to the tool.json default. Value unchanged. |
| Additional Medicare Tax threshold, MFS (statutory) | 125,000 | irs.gov | Effective 2026-01-01Fix 2026-10-24: the row went live with country_code AU, so Resolver never saw it and the key fell back to the tool.json default. Value unchanged. |
We always strive to use the latest data for every variable so our results and reports are as accurate as possible. Even so, errors are possible — you should not rely on this tool or its report alone, and we accept no liability for any decision made based on it.
The formula
Base = net earnings × 0.9235; Social Security = min(base, wage base) × 12.4%; Medicare = base × 2.9%; SE tax = the two combined; deductible half = SE tax ÷ 2
How it works
It multiplies your net earnings by 0.9235 to get the taxable base, caps the Social Security portion at the annual wage base, applies the combined Medicare rate to the whole base, adds the two together, and halves the total to show the deduction you can take against income.
Where it is used
- Estimating quarterly estimated-tax payments as a freelancer
- Separating the Social Security and Medicare shares of your bill
- Finding the employer-equivalent deduction for your income tax return
Worked example
On $60,000.00 of net earnings the taxable base is 92.35% of profit, giving a self-employment tax of … — … for Social Security and … for Medicare — with … deductible against income tax.
Freelancers, contractors, sole proprietors and single-member LLC owners pay both halves of Social Security and Medicare through the self-employment tax. An employee has roughly 7.65% withheld from each paycheck and the employer pays the same again; when you are the business, you pay both. This self-employment tax calculator applies the 2026 rates to your net earnings and shows the total, the split between Social Security and Medicare, and the portion you can deduct against income tax.
How self-employment tax is calculated
Start with your net self-employment earnings, business income minus deductible business expenses, not gross revenue. That figure is multiplied by 92.35% to give the taxable base. The combined 15.3% rate is then applied to the base in two parts: 12.4% for Social Security and 2.9% for Medicare.
The Social Security portion applies only up to the wage base, $184,500 for 2026; earnings above it pay no Social Security tax. The Medicare portion has no ceiling, so every dollar of the taxable base pays 2.9%.
The Social Security wage base
Below the wage base, each extra dollar of profit carries the full 15.3%. Once your taxable base reaches $184,500, the Social Security tax stops growing and only the 2.9% Medicare rate continues, so a high earner's marginal self-employment tax rate drops sharply above the base. The calculator applies the Social Security rate only to the part of your base up to the ceiling.
Why only 92.35% of your profit is taxed
An employee and employer each pay 7.65% in payroll tax. The employer's share is a business cost, not part of the employee's wages, so the employee is never taxed on it as income. A self-employed person pays the whole 15.3%, so the tax base is reduced by that same 7.65% before the rate is applied, leaving 92.35% of net profit. This is a fixed part of how the tax works, not a rate that changes each year.
The deductible half
You can deduct one-half of the self-employment tax you owe, the employer-equivalent portion, as an adjustment to income. It reduces the income your federal income tax is based on but not the self-employment tax itself, and it is available whether or not you itemize. The calculator reports this amount so you can carry it to your return.
A worked example
Suppose your net self-employment earnings for the year are $60,000. Multiplying by 92.35% gives a taxable base of $55,410, well under the wage base, so all of it is subject to Social Security: 55,410 at 12.4% is about $6,871. Medicare at 2.9% is roughly $1,607. The self-employment tax comes to about $8,478, and half of that, near $4,239, is deductible against income tax. Above the wage base, the Social Security piece would stop at the cap while Medicare kept rising with profit.
Estimated taxes
No employer withholds tax for you, so self-employment tax is normally paid through quarterly estimated payments along with your income tax. Underpaying during the year can trigger penalties, and many self-employed people set aside a fixed share of each payment they receive. Run your expected annual profit through the calculator for the self-employment part of that reserve, then add your projected income tax to size the quarterly payments.
Assumptions and limitations
This is an estimate for planning, not tax advice. It uses the 2026 Social Security and Medicare rates and wage base, stored as parameters taken from the IRS and SSA and reviewed each year. It assumes the figure you enter is net self-employment earnings after deductible business expenses. It does not model the Additional Medicare Tax for high earners, W-2 wages already counted toward the wage base, state taxes, the qualified business income deduction, or the optional methods for farmers and low-profit years. For anything beyond a planning estimate, check current IRS guidance or ask a tax professional.
About This Self Employment Tax Calculator
Use this self employment tax calculator to get an instant, accurate estimate. The figures follow official IRS guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.
Tax year 2026
Frequently asked questions
What is the self-employment tax rate for 2026?
Why is only 92.35% of my earnings taxed?
Is there a cap on self-employment tax?
Can I deduct any of the self-employment tax?
Do I still owe self-employment tax if I also have a W-2 job?
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