TAX · SELF-EMPLOYED

Self-Employment Tax Calculator

Estimate your self-employment tax (Social Security + Medicare) plus federal income tax. Includes the deductible half of SE tax and quarterly payment amounts.

LAST REVIEWED · APR 10, 2026 · BY M. REYES, CPA
You need
$19,274
Est. cost
24.1%
Self-EmploymentReset
Net Self-Employment IncomeAfter expenses
$80,000
$0$500K
Filing Status
Other W-2 IncomeFrom employment
$0
$0$300K
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What is self-employment tax?

Self-employment tax covers Social Security and Medicare for people who work for themselves. Employees split FICA with their employer (6.2% + 1.45% each), but self-employed individuals pay both halves — 15.3% total on 92.35% of net earnings.

Why 92.35%?

The IRS lets you reduce your SE base by 7.65% to simulate the employer-side deduction that W-2 workers get. This is the 92.35% multiplier (100% − 7.65%). You also deduct half the resulting SE tax from your adjusted gross income.

Quarterly estimated payments

Since no employer withholds taxes for you, the IRS expects quarterly estimated payments (Form 1040-ES). Miss a deadline and you'll face an underpayment penalty, even if you pay the full amount by April 15.

Methodology. SE tax base = net self-employment income x 92.35%. Social Security: 12.4% on the first $176,100. Medicare: 2.9% with no cap, plus 0.9% additional Medicare on combined income over $200,000. Half of SE tax is deductible for income tax purposes. Federal income tax uses 2026 brackets.

Sources

  • IRS Schedule SE instructions (2026)
  • IRS Publication 334 (Tax Guide for Small Business)
  • Social Security Administration OASDI rate schedule
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Frequently asked questions

Do I owe SE tax on all 1099 income? +
You owe SE tax on net self-employment income over $400. Net means gross income minus deductible business expenses (home office, supplies, mileage, etc.).
Can I reduce my SE tax? +
Yes. Maximize business expense deductions to lower net income. You can also elect S-corp status (once profitable enough) to pay yourself a reasonable salary and take remaining profit as distributions, which are not subject to SE tax.
What's the difference between SE tax and income tax? +
SE tax is the self-employed version of FICA (Social Security + Medicare). Income tax is the federal tax on your taxable income after deductions. You pay both — they're separate calculations.
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