Self-Employment Tax Calculator
Calculate 2026 self-employment tax — Social Security and Medicare on 92.35% of net profit, plus the Additional Medicare Tax where it applies.
Content updated August 20, 2026
2026 rates: 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of net profit, plus 0.9% Additional Medicare Tax above a $200,000 single / $250,000 married-filing-jointly combined-income threshold that is fixed by statute, not inflation-adjusted. This is not income tax; it is the separate self-employment equivalent of the Social Security and Medicare tax an employer would otherwise withhold and match.
Self-employment tax exists because a self-employed person has no employer to split the cost of Social Security and Medicare with — Schedule SE has you pay both the employee and employer share yourself, on 92.35% of your net profit rather than the full amount.
This calculator does not estimate income tax on your profit — that is a separate calculation on your Form 1040. It covers only the self-employment tax itself: the Social Security and Medicare portion, coordinated against any other W-2 wages you already earned this year, plus the Additional Medicare Tax where it applies.
The Self-Employment Tax formula
Net earnings from self-employment = net profit × 92.35%; Social Security portion = 12.4% × min(net earnings, max(0, $184,500 − other wages this year)); Medicare portion = 2.9% × net earnings; Additional Medicare Tax = 0.9% × min(net earnings, max(0, other wages + net earnings − threshold))the threshold is $200,000 (single) or $250,000 (married filing jointly); no self-employment tax is owed if net earnings from self-employment are below $400.
Worked example
A single filer with $80,000 of net profit and no other wages: net earnings from self-employment are 92.35% × $80,000 = $73,880. Social Security portion is 12.4% × $73,880 = $9,161.12, Medicare portion is 2.9% × $73,880 = $2,142.52, for $11,303.64 of self-employment tax before Additional Medicare Tax (which does not apply here, well under the $200,000 threshold). Half of that, $5,651.82, is deductible when figuring adjusted gross income.
Assumptions, rounding, and limitations
Assumptions
- Net profit is treated as a positive figure for the year — this calculator does not model a business loss.
- 'Other wages already earned this year' is used to coordinate both the Social Security wage-base cap and the Additional Medicare Tax threshold, though in an actual W-2 these can differ slightly (Social Security wages are capped at the wage base while Medicare wages are not).
- The Additional Medicare Tax follows the Form 8959 ordering rule, where wages count against the threshold before self-employment income does.
Rounding: All figures are computed at full floating-point precision and rounded only for currency display.
Limitations
- Does not calculate income tax on the profit itself — only the separate self-employment tax.
- Filing status is limited to single and married filing jointly.
- Does not model a net loss, multiple businesses, or church employee income, which has its own $108.28 threshold.
- Not tax advice; consult a tax professional or Schedule SE for your specific situation.
Sources
- Topic no. 554, Self-employment tax — Internal Revenue Service (IRS)
- Instructions for Schedule SE (Form 1040) — Internal Revenue Service (IRS)
- Topic no. 560, Additional Medicare Tax — Internal Revenue Service (IRS)
Why 92.35% of net profit
The 92.35% factor exists because an employee's share of FICA tax is not itself subject to FICA tax — since a self-employed person's 'employer share' and 'employee share' come from the same pocket, the IRS applies this factor to approximate the same effect before calculating self-employment tax.
The Social Security cap and the Additional Medicare Tax
Social Security tax (12.4%) only applies up to the 2026 wage base of $184,500, and that cap is shared across every job you hold — self-employment and W-2 wages together. Enter any W-2 wages you already earned this year and the calculator reduces your remaining Social Security wage-base room accordingly. Medicare tax (2.9%) has no cap, and the Additional Medicare Tax (0.9%) applies once your combined wages and self-employment income exceed $200,000 (single) or $250,000 (married filing jointly) — with wages counted against that threshold first, per the IRS Form 8959 ordering.
The deduction you get back
Half of the 15.3% self-employment tax — the Social Security and Medicare portion, not the Additional Medicare Tax — is deductible when calculating your adjusted gross income on Schedule 1. This calculator reports that deductible half separately so you can see what actually flows through to your income tax return.
Frequently asked questions
▶What is self-employment tax?
The self-employed equivalent of the Social Security and Medicare tax an employer would otherwise withhold and match: 15.3% combined (12.4% Social Security, capped at the annual wage base, plus 2.9% uncapped Medicare) on 92.35% of your net profit, reported on Schedule SE.
▶Do I owe self-employment tax on every dollar of profit?
No. It applies to 92.35% of your net profit, and only if your net earnings from self-employment reach $400 or more for the year — below that, no self-employment tax is owed.
▶What if I also have a W-2 job?
The Social Security wage base ($184,500 for 2026) is shared across all your income, self-employment and W-2 wages combined — enter your other wages so the calculator can reduce your remaining Social Security room correctly. The Additional Medicare Tax threshold works the same way.
▶Is all of my self-employment tax deductible?
No — only half of the 12.4% Social Security plus 2.9% Medicare portion is deductible when figuring your adjusted gross income. The 0.9% Additional Medicare Tax, where it applies, is not part of that deduction.
▶What if my net profit is less than $400?
Once 92.35% of your net profit falls below $400, no self-employment tax is owed for the year, per the IRS Schedule SE filing threshold.
Learn more
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Open calculator →Disclaimer: Self-Employment Tax Calculator results are estimates for general information and education only, and are not financial, tax, legal or medical advice. Verify important decisions with a qualified professional.