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Self-employed · Schedule C · 2026 rates

Self-Employment Tax Calculator

When you work for yourself, you pay both halves of Social Security and Medicare — 15.3% combined, before income tax even enters the picture. Here's exactly what you owe and how much of it you get back as a deduction. Example: $120,000 in net profit owes about $16,955 in SE tax.
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Line 31 of Schedule C — your business profit for the year.
Determines the threshold for the Additional Medicare Tax.

What counts as self-employment tax

Self-employment (SE) tax is how you pay into Social Security and Medicare when there's no employer to split the bill. A traditional employee and employer each pay 7.65% — you pay both halves, 15.3% total, on 92.35% of your net profit.

The 92.35% adjustment

The IRS only taxes 92.35% of your net profit for SE tax purposes, as a rough stand-in for the employer-side payroll tax an employee's company would otherwise pay on their behalf. It's applied automatically before the 15.3% rate.

Social Security wage base

The 12.4% Social Security portion only applies up to $184,500 of SE income for 2026 — earnings above that are subject only to the 2.9% Medicare portion (plus the Additional Medicare Tax at higher incomes).

Common questions

Is SE tax the same as income tax?

No — SE tax funds Social Security and Medicare specifically. You'll owe federal (and possibly state) income tax on top of it, calculated separately on your taxable income.

What is the Additional Medicare Tax?

An extra 0.9% Medicare tax applies to self-employment income above $200,000 (single), $250,000 (married filing jointly), or $125,000 (married filing separately). It's not split — you owe the full 0.9% yourself, and it isn't eligible for the usual half-deduction.

Do I need to pay this quarterly?

If you expect to owe $1,000 or more for the year after withholding and credits, the IRS generally expects quarterly estimated payments covering both SE tax and income tax, due in April, June, September, and January.