How this is calculated
- Net earnings from self-employment. Self-employment tax isn't charged on
your full Schedule C profit — you first multiply it by 92.35% (this factor removes the
employer-half of FICA that a W-2 employee wouldn't be taxed on):
net earnings = profit × 0.9235. If net earnings come to less than$400, no self-employment tax is owed and you generally skip Schedule SE. - Social Security portion (12.4%). Applied only up to the 2026 Social
Security wage base of
$184,500, and that base is shared with any wages a W-2 job already taxed:SS = 12.4% × min(net earnings, $184,500 − W-2 SS wages), never below $0. Once you (across all jobs) hit the wage base, the 12.4% piece stops. - Medicare portion (2.9%). Medicare has no wage cap, so it applies to every
dollar of net earnings:
Medicare = 2.9% × net earnings. - Additional Medicare Tax (0.9%). An extra 0.9% on net earnings above your
filing-status threshold —
$200,000single / head of household / qualifying surviving spouse,$250,000married filing jointly,$125,000married filing separately:Add'l = 0.9% × max(net earnings − threshold, 0). - Total and the deductible half.
SE tax = SS + Medicare + Additional Medicare. The effective rate isSE tax ÷ profit. You may deducthalf of the SE taxas an above-the-line adjustment to income on Schedule 1 — it lowers your income tax, not the SE tax itself, and you get it whether or not you itemize.
What this doesn't model: income tax itself, the qualified business income (QBI) deduction, S-corp reasonable-compensation splits, partnership/K-1 specifics, the Section 1256 or optional Schedule SE methods, self-employed health-insurance or retirement-plan deductions, or state taxes. On a real return the Additional Medicare Tax threshold is also reduced by your W-2 Medicare wages; this estimator applies the 0.9% to net SE earnings above the raw filing-status threshold, so a large W-2 job can push your actual Additional Medicare Tax higher than shown. It's a clean first estimate of your Schedule SE liability — not a filed return.
Data as of 2026 (tax year 2026). Social Security rate 12.4%, Medicare 2.9%, and Additional Medicare 0.9% are the statutory self-employment rates; the $184,500 Social Security wage base is the SSA's 2026 taxable maximum (up from $176,100 in 2025). Additional Medicare thresholds ($200,000 / $250,000 / $125,000) are set by statute and not inflation-indexed.
Frequently asked questions
What is the self-employment tax rate for 2026?
The self-employment tax rate is 15.3% — 12.4% for Social Security plus 2.9% for Medicare. It applies to your net earnings from self-employment, which are 92.35% of your Schedule C net profit. For 2026 the 12.4% Social Security portion only applies up to the $184,500 wage base; the 2.9% Medicare portion has no cap, and a 0.9% Additional Medicare Tax applies above $200,000 (single) or $250,000 (married filing jointly).
Why is only 92.35% of my profit taxed?
Employees split FICA with their employer, and the employer's half isn't taxed as the employee's wages. To put the self-employed on equal footing, the IRS lets you first multiply your net profit by 92.35% (that is, 100% minus half of the 15.3% rate) before applying the 15.3% self-employment tax. This 0.9235 factor is built into Schedule SE and is why your net earnings from self-employment are always a little lower than your bottom-line profit.
Can I deduct half of my self-employment tax?
Yes. You can deduct one-half of your self-employment tax as an above-the-line adjustment to income on Schedule 1 of Form 1040. It lowers your adjusted gross income and therefore your income tax — it does not reduce the self-employment tax itself, and you get it whether or not you itemize. This calculator shows that deductible half separately.
How do W-2 wages affect my self-employment tax?
Social Security tax stops at the annual wage base ($184,500 for 2026), counting both W-2 and self-employment earnings. If a job already paid Social Security tax on part of that base, only the leftover base is subject to the 12.4% Social Security portion of your SE tax; enter your W-2 Social Security wages to coordinate the cap. The 2.9% Medicare portion still applies to all of your net self-employment earnings because Medicare has no wage cap.
This calculator is an educational estimate, not tax advice, not a filed return, and not a substitute for a licensed tax professional. It does not compute income tax, the QBI deduction, S-corp compensation splits, or state taxes, and it does not account for every Schedule SE special method. No liability is accepted for decisions made from these results. Estimates only — consult a tax professional.