What self-employment tax is
Employees and employers split Social Security and Medicare: 7.65% each, taken out of every paycheck. When you work for yourself you are both, so you pay the full 15.3%. That is self-employment tax, and it comes on top of regular income tax.
How it's calculated
- Start with your profit: self-employment income minus business expenses.
- Multiply by 92.35%. If that is under $400, you owe none.
- 12.4% of it goes to Social Security, up to the 2026 wage base of $184,500.
- 2.9% of all of it goes to Medicare, plus 0.9% on earnings over $200,000 ($250,000 if married filing jointly).
- Half of the Social Security and regular Medicare tax is then deducted from your income for income tax.
On a $60,000 profit, that is $8,478 of self-employment tax. With federal income tax for a single filer, the total is about $12,037, or $3,009 a quarter.
The 2026 numbers this calculator uses
| Self-employment tax rate | 15.3% on 92.35% of profit |
| Social Security wage base | $184,500 |
| Additional Medicare tax | 0.9% above $200,000 ($250,000 joint) |
| Standard deduction (single / joint / head of household) | $16,100 / $32,200 / $24,150 |
| Qualified business income deduction | 20%, at least $400 |
| Standard mileage rate | 72.5¢ Jan–Jun, 76¢ from Jul 1 |
From IRS Rev. Proc. 2025-32 and the Social Security Administration's 2026 figures.
Questions
Who pays self-employment tax?
Anyone with $400 or more of net earnings from self-employment: freelancers, independent contractors, sole proprietors and partners in a partnership. It is reported on Schedule SE with your tax return.
Is self-employment tax the same as income tax?
No. Self-employment tax is Social Security and Medicare. It is owed on top of income tax, and you can owe it even in a year when you owe no income tax at all.
Can I deduct self-employment tax?
Half of it. The deductible half (Social Security plus the regular 2.9% Medicare, not the 0.9% Additional Medicare tax) comes off your income before income tax is worked out. This calculator applies it for you.
How can I lower my self-employment tax?
It is figured on profit, so every legitimate business expense lowers it, including business driving: 72.5¢ a mile through June 2026 and 76¢ from July 1. Recording expenses as they happen is the reliable way not to miss them.
Also free: Quarterly tax calculator.