What self-employment tax is
Employees split Social Security and Medicare with their employer, each paying 7.65%. If you work for yourself, you pay both halves: 15.3%, called self-employment (SE) tax. It applies to freelancers, contractors, gig workers and sole proprietors with net earnings of $400 or more.
How it is calculated
- Multiply net profit by 92.35% (this mirrors the employer's half being deductible).
- 12.4% Social Security on that amount, up to $184,500 in 2026 (less any W-2 wages).
- 2.9% Medicare on all of it, plus 0.9% above $200,000 for single filers.
Worked example
$100,000 of net profit: 92.35% = $92,350. Social Security $11,451.40 + Medicare $2,678.15 = $14,129.55 of SE tax. Half of it, $7,064.78, is deductible on your income tax return.
Pay it with quarterly estimated taxes (about $3,532 a quarter here, plus income tax) to avoid underpayment penalties.
How this works
The page takes 92.35% of your net profit, applies 12.4% Social Security up to what is left of the 2026 wage base after any W-2 wages, 2.9% Medicare on the whole amount and 0.9% Additional Medicare above your filing status threshold. The deductible half covers the Social Security and regular Medicare parts. Amounts are rounded to the cent.
Frequently asked
What is the self-employment tax rate for 2026?
15.3%: 12.4% Social Security up to $184,500 of net earnings and 2.9% Medicare, plus 0.9% above $200,000.
Why multiply by 92.35%?
It reduces earnings by the employer-equivalent half of the tax, as an employee's wages are.
Is SE tax deductible?
Half of it is an above-the-line deduction on your income tax return.
Do I also pay income tax?
Yes. SE tax is in addition to federal and state income tax on the profit.
Sources
- IRS — Self-employment tax (Social Security and Medicare taxes)
- IRS Topic 751 — Social Security and Medicare withholding rates (2026 wage base)
Reviewed Oct 17, 2026 · test vectors fixtures/calculators/finance/us/self-employment-tax-calculator/