Self-Employment Tax Calculator (2026)
Work out your self-employment tax for 2026, the 15.3 percent that covers Social Security and Medicare when you work for yourself.
How it's calculated
When you work for yourself you pay both halves of Social Security and Medicare, the employee share and the share an employer would normally cover. That combined rate is 15.3 percent, made up of 12.4 percent for Social Security and 2.9 percent for Medicare. It applies to your net earnings from self-employment, which is your net profit multiplied by 0.9235. That factor strips out the employer half so you are not taxed on tax.
Here is a worked example for 2026. Say your business nets $100,000. Your net earnings from self-employment are $92,350. The Social Security portion is 12.4 percent of that, or $11,451.40, and the Medicare portion is 2.9 percent, or $2,678.15. Add them and your self-employment tax is $14,129.55. You can then deduct half of it, $7,064.78, as an adjustment to income, which lowers your federal income tax.
Social Security tax only applies up to the annual wage base, which is $184,500 for 2026. Medicare has no cap. So a business netting $250,000 has net earnings of $230,875, but the 12.4 percent Social Security portion stops at $184,500 and comes to $22,878. Medicare still applies to all $230,875, adding $6,695.38, for a total of $29,573.38. If you also have a W-2 job, the Social Security wages already taken there reduce how much of the cap is left for your self-employment income.
Assumptions
- Self-employment tax is 15.3 percent on 92.35 percent of net profit, with the 12.4 percent Social Security portion capped at the $184,500 wage base for 2026. — SSA 2026 wage base, IRS Schedule SE
- The 0.9 percent Additional Medicare Tax and any state tax are not included here, since they are figured separately from Schedule SE.
Last updated: 2026-08-08 · Tax year 2026
These assumptions follow our general methodology.
Frequently asked questions
What is the self-employment tax rate for 2026?
It is 15.3 percent, which is 12.4 percent for Social Security plus 2.9 percent for Medicare. You pay it on 92.35 percent of your net business profit. The Social Security part stops at the $184,500 wage base for 2026, while Medicare has no cap.
How is self-employment tax different from income tax?
They are separate taxes. Self-employment tax funds Social Security and Medicare and is figured on Schedule SE. Federal income tax is figured on your taxable income using the brackets. You owe both, so run the Federal Income Tax calculator alongside this one to see your full bill.
Can I deduct half of my self-employment tax?
Yes. You can deduct one half of your self-employment tax as an adjustment to income, before you even itemize. It does not reduce the self-employment tax itself, but it lowers the income your federal income tax is based on.
Do I pay Social Security tax on all of my self-employment income?
No. The 12.4 percent Social Security portion only applies up to the wage base, $184,500 in 2026. Earnings above that are still subject to the 2.9 percent Medicare portion. Wages from a W-2 job count toward the same Social Security cap, so a high salary can use it up before your self-employment income is counted.
What is the 0.9 percent Additional Medicare Tax?
High earners owe an extra 0.9 percent Medicare tax on earned income above $200,000 for single filers and $250,000 for married couples filing jointly. It is worked out separately on Form 8959 across all of your wages and self-employment income, so it is not part of the Schedule SE figure this calculator shows.