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Data effective: 2026 tax year · Last updated: 2026-07-16

Self-Employment Tax Calculator

Calculate self-employment tax for freelancers, contractors, and 1099 income.

Your 1099 net earnings after business expenses

Total Self-Employment Tax

$11,304

14.1% of net SE income

Social Security (12.4%)

$9,161

on $73,880 (92.35% of net)

Medicare (2.9%)

$2,143

on $73,880

Line ItemAmount
Net SE Income$80,000
SE Taxable Income (92.35%)$73,880
Social Security Tax (12.4%)−$9,161
Medicare Tax (2.9%)−$2,143
Total SE Tax (15.3%)−$11,304
Deductible Half (employer portion)+$5,652
Income After SE Tax Deduction$74,348
Effective Rate: 14.1%
Deductible Half: $5,652
Researched by CentCalc Financial Editorial TeamData: IRS Schedule SE 2026 + SECA tax rules

How This Is Calculated

Self-employment tax covers both the employer and employee share of Social Security and Medicare taxes that would normally be split with an employer.

SE Taxable Income: Net SE income × 92.35%. The 92.35% factor (100% minus half the 15.3% rate) approximates the pre-employer-share basis that W-2 employees are taxed on.

Social Security: 12.4% on SE taxable income up to the wage base (184,500 for 2026). This covers both the employer (6.2%) and employee (6.2%) shares.

Medicare: 2.9% on all SE taxable income (no cap). High earners may owe an additional 0.9% on income above $200,000 (single) or $250,000 (married jointly).

Deductible half: You can deduct 50% of your total SE tax from your adjusted gross income, reducing your federal income tax.

SE Tax = 15.3% × 92.35% of net SE income. Social Security: 12.4% up to 184,500 wage base. Medicare: 2.9% (no cap). Deductible half: 50% of total SE tax reduces AGI.

Frequently Asked Questions

What is self-employment tax?
Self-employment (SE) tax is the Social Security and Medicare tax that self-employed individuals must pay. W-2 employees split this 50/50 with their employer (7.65% each), but self-employed individuals pay both halves — 15.3% of 92.35% of net SE income.
How do I reduce self-employment tax?
You can deduct 50% of your SE tax from your AGI. You can also reduce SE tax by deducting business expenses to lower net SE income, contributing to a SEP-IRA or Solo 401(k), taking the QBI deduction (up to 20%), and electing S-Corp status if appropriate.
What is the 92.35% factor in SE tax?
The IRS requires you to multiply your net SE income by 92.35% before calculating SE tax. This approximates the fact that W-2 employees are only taxed on their pre-employer-share income.
Do I pay SE tax on all self-employment income?
SE tax applies to net earnings from self-employment — gross income minus business expenses. If your net SE earnings are less than $400, you generally do not owe SE tax. The Social Security portion only applies up to the wage base (184,500 for 2026).
Is self-employment tax in addition to income tax?
Yes, SE tax is separate from and in addition to your federal income tax. However, you can deduct half of your SE tax from your AGI, which reduces your income tax.

Self-employment tax guides

Reduce your SE tax the legal way

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Estimates only. Does not include federal/state income tax, QBI deduction, or itemized deductions. Consult a tax professional.