Self-Employment Tax Calculator 2026
Know exactly how much to send the IRS each quarter. Enter your 1099 or freelance income, expenses, and W-2 wages to see your SE tax, federal and state income tax, and your quarterly estimated payment.
Self-Employment Income
Gross 1099 or freelance receipts before expenses (Schedule C, line 1).
Business Expenses
Deductible expenses like home office, mileage, software, supplies (Schedule C).
Other W-2 Income
Gross wages from a W-2 job. Used to coordinate the $184,500 Social Security cap.
Filing Status
Sets your standard deduction, brackets, and the Additional Medicare threshold.
State Income Tax Rate
Use 0% for no-income-tax states (TX, FL, NV, WA, TN, SD, WY, AK, NH). Otherwise enter your state's top marginal or flat rate.
QBI Deduction
Section 199A, a 20% deduction on qualified business income, reducing federal income tax (not SE tax).
Self-Employment Tax (15.3%)
Additional Medicare Tax kicks in above $200K single, $250K married, or $200K HoH combined earnings. The deductible half excludes Additional Medicare (per Schedule SE line 13).
Federal & State Income Tax
Estimate only. Simplifies QBI (no SSTB or W-2-wage limits) and uses the federal standard deduction for state taxable income. Consult a tax professional for precise numbers.
Track Every Dollar Year-Round
Pay44 handles W-2 paychecks, 1099 income, and state taxes in one place, so you always know where you stand before April 15.
How Self-Employment Tax Works
Self-employment tax is the freelancer's version of FICA. When you work a W-2 job, your employer withholds 6.2% for Social Security and 1.45% for Medicare, then matches those amounts out of its own pocket. When you're self-employed, you owe both halves, so the rate is 12.4% + 2.9% = 15.3%, split between Social Security and Medicare.
There's a mild kindness in the math. You only pay SE tax on 92.35% of your net business income, not 100%. That adjustment mirrors the deduction a W-2 employer gets for its share of payroll taxes. Multiply your Schedule C profit by 0.9235, then apply the 15.3% rate.
The Social Security portion stops at a wage base of $184,500 in 2026, up from $176,100 in 2025. Anything above that cap only pays the 2.9% Medicare portion. The Medicare half has no cap, and a 0.9% Additional Medicare Tax kicks in above $200,000 (single), $250,000 (married filing jointly), or $200,000 (head of household). Those thresholds are fixed by statute and don't adjust for inflation.
If you also have a W-2 job, your employer's Social Security wages count toward that same $184,500 cap. The calculator above coordinates both so you don't overpay the SS portion on combined earnings.
Deductions That Reduce Your SE-Related Tax
A few deductions meaningfully change what you owe, and unlike many tax breaks, most of them are available without itemizing.
- Business expenses (Schedule C): home office, mileage, software, subcontractors, supplies. These reduce both your SE tax and your income tax, dollar for dollar. Keep receipts.
- Half of your SE tax: deductible above the line on Schedule 1, line 15. This reduces your AGI, which can help you qualify for other income-tested benefits.
- QBI deduction (Sec. 199A): up to 20% of qualified business income for pass-through owners. Made permanent by the One Big Beautiful Bill Act (P.L. 119-21 §70105), with a $400 minimum for active QBI of $1,000 or more. Does not reduce SE tax.
- SEP-IRA, Solo 401(k), or SIMPLE IRA contributions: lower your taxable income and shelter retirement savings. These reduce income tax but not SE tax.
- Self-employed health insurance deduction: above-the-line, for premiums you pay for yourself, your spouse, and dependents, when not eligible for a subsidized plan elsewhere.
Quarterly Estimated Taxes — How to Stay Safe
The IRS wants its money as you earn it. If you'll owe $1,000 or more for the year and your withholding doesn't cover it, you're expected to make quarterly payments on Form 1040-ES. The 2026 due dates are:
- Q1: April 15, 2026
- Q2: June 15, 2026
- Q3: September 15, 2026
- Q4: January 15, 2027
You can sidestep the underpayment penalty via one of three safe harbors: pay at least 90% of your current-year tax, pay 100% of last year's total tax (110% if your AGI exceeded $150K), or owe less than $1,000 for the year. The easiest rule, "100% of last year's tax, divided into four," works well if your income is steady.
Pay through IRS Direct Pay (free, from a bank account), EFTPS, or by debit/credit card. Keep the confirmation numbers; you'll reference them on your return. The current underpayment penalty runs roughly 8% annually as of 2026, which is worth avoiding.
Minimizing Your SE Tax Bill — Legit Strategies
Four moves reliably lower what you owe without crossing any IRS lines:
- Track every legitimate expense. Home office square footage, business miles, software subscriptions, continuing education, even a percentage of your phone bill. Every dollar of legitimate expense reduces both SE tax and income tax.
- Consider an S-corp election once you clear ~$40–50K net. An S-corp lets you split income between a "reasonable salary" (SE tax applies) and distributions (SE tax doesn't apply). The savings usually offset the payroll and compliance cost around that threshold. Use the Employee vs Contractor Calculator to explore the trade-off.
- Fund a Solo 401(k) or SEP-IRA. Both offer generous contribution limits for the self-employed. These don't reduce SE tax but meaningfully lower your income tax. See the 401(k) Contribution Calculator for the W-2 version of the math.
- Take the QBI deduction. For most freelancers and 1099 contractors below the $197K single or $394K MFJ phase-in, QBI trims 20% off qualified business income on the income-tax side. Our calculator includes a simplified QBI estimate; consult a CPA for SSTB or high-income situations.
SE Tax Quick-Reference Table (2026)
Common net SE earnings and the resulting SE tax. Assumes no W-2 income and filing single. Above the $184,500 wage base, Social Security stops accruing and only the 2.9% Medicare portion applies to additional earnings.
| Net SE Earnings | Taxable Base (92.35%) | SE Tax (15.3%) | Deductible Half | After SE Tax |
|---|---|---|---|---|
| $10,000 | $9,235 | $1,413 | $706 | $8,587 |
| $15,000 | $13,853 | $2,120 | $1,060 | $12,880 |
| $20,000 | $18,470 | $2,826 | $1,413 | $17,174 |
| $30,000 | $27,705 | $4,239 | $2,120 | $25,761 |
| $50,000 | $46,175 | $7,065 | $3,532 | $42,935 |
| $75,000 | $69,263 | $10,597 | $5,299 | $64,403 |
| $100,000 | $92,350 | $14,130 | $7,065 | $85,870 |
| $150,000 | $138,525 | $21,194 | $10,597 | $128,806 |
| $184,500 (cap) | $170,386 | $26,069 | $13,034 | $158,431 |
| $200,000 | $184,700 | $28,234* | $14,117 | $171,766 |
* Above the $184,500 taxable base, the Social Security portion caps out, and additional earnings incur only the 2.9% Medicare portion. At a $200,000 net SE income, that's $184,500 × 12.4% + $184,700 × 2.9% = $22,878 + $5,356 = $28,234.
Sources: IRS — Self-Employment Tax, IRS — About Schedule SE, IRS — Estimated Taxes, SSA — Contribution and Benefit Base, IRS — 2026 Tax Inflation Adjustments, IRS — QBI Deduction.
Frequently Asked Questions
Common questions about self-employment tax and quarterly payments
What is self-employment tax?
SE tax is the self-employed equivalent of FICA: 12.4% Social Security plus 2.9% Medicare, for a combined 15.3% rate on 92.35% of your net business income. It covers the employer and employee halves of payroll tax that a W-2 employer would otherwise split with you.
How is self-employment tax calculated?
Subtract deductible business expenses from gross 1099 or freelance income, multiply by 92.35%, then apply 15.3%: that's 12.4% Social Security up to the $184,500 wage base in 2026 plus 2.9% Medicare with no cap. High earners add an extra 0.9% Additional Medicare Tax above $200K single or $250K married filing jointly.
When do I have to pay quarterly estimated taxes?
The 2026 due dates are April 15, June 15, September 15, and January 15, 2027. You have to pay quarterly if you expect to owe $1,000 or more for the year and your withholding won't cover it. Use Form 1040-ES or pay online through IRS Direct Pay or EFTPS.
Is SE tax the same as self-employment income tax?
No. They're two different taxes on the same income. SE tax is specifically the 15.3% Social Security plus Medicare tax. On top of that, you also owe federal income tax (and usually state income tax). This calculator shows all three so you can see the full picture before writing a check to the IRS.
Can I deduct business expenses from SE tax?
Yes. SE tax applies to your net earnings, which is gross receipts minus deductible business expenses reported on Schedule C. On top of that, you get to deduct 50% of your SE tax (excluding the Additional Medicare portion) from AGI on Schedule 1, which lowers your income tax.
What happens if I don't pay quarterly taxes?
The IRS charges an underpayment penalty based on the federal short-term rate plus 3 percentage points, which works out to roughly 8% annualized in 2026. You can avoid the penalty via safe harbor: pay at least 90% of current-year tax, 100% of last year's tax (110% if AGI exceeds $150K), or owe less than $1,000 for the year.
Does the QBI deduction affect my self-employment tax?
No. The QBI deduction (Section 199A) reduces federal income tax only. SE tax is calculated on your net self-employment earnings before QBI. You still owe the full 15.3% on 92.35% of profit even if QBI zeroes out some of your income tax.
Do I owe SE tax if I have a W-2 job too?
Yes. SE tax applies to your self-employment earnings regardless of W-2 status. Your W-2 Social Security wages count toward the $184,500 wage-base cap, so you won't pay the 12.4% Social Security portion twice on the same earnings. The calculator above coordinates the cap automatically.
Need More Than a Quick Calculation?
The full app tracks your full paycheck all year — overtime, bonuses, deductions, and 50-state taxes built in.