Self-Employment Tax Calculator
Self-employment tax is the freelancer version of FICA: a flat 15.3% covering Social Security (12.4%) and Medicare (2.9%). It's reported on Schedule SE and stacks on top of your federal income tax. Use the calculator below to estimate your 2026 SE tax on net 1099 earnings — built for sole proprietors, single-member LLCs, gig workers, and 1099 contractors.
Estimate your 2026 SE tax
15.3% applied to 92.35% of net Schedule C profit · $184,500 SS wage base · 0.9% surtax above $200k single
SE tax only. For combined federal + SE + state tax, use the quarterly tax calculator or a state page (e.g. California).
How the calculation works
Self-employment tax follows a strict three-step formula on Schedule SE:
- Net Schedule C profit = gross 1099 income − business expenses.
- Taxable SE earnings = net profit × 0.9235. The 92.35% multiplier exists so freelancers aren't double-taxed on what would have been the employer's share of FICA.
- SE tax = (taxable SE earnings × 12.4%, capped at $184,500 of base) + (taxable SE earnings × 2.9%, no cap) + (excess over $200k single × 0.9%, no cap).
Social Security + Medicare breakdown (2026)
| Component | Rate | Notes |
|---|---|---|
| Social Security (OASDI) | 12.40% | Caps at the $184,500 wage base |
| Medicare (Hospital Insurance) | 2.90% | No cap |
| Total self-employment tax | 15.30% | Combined rate on taxable SE earnings |
| Additional Medicare surtax | 0.90% | Applies to net SE earnings above $200k single / $250k MFJ |
For more depth on each piece, see self-employment tax rate (2026).
The 92.35% adjustment in plain English
Multiplying net Schedule C profit by 0.9235 before applying the 15.3% rate is the IRS's way of putting freelancers on roughly equal footing with W-2 employees, who don't pay FICA on the employer's share of payroll tax. The math: net profit × 0.9235 = taxable SE earnings.
Worked examples (2026)
$40,000 freelancer
| Net Schedule C profit | $40,000 |
| × 0.9235 = taxable SE earnings | $36,940 |
| Social Security 12.4% (full) | $4,581 |
| Medicare 2.9% (full) | $1,071 |
| Total SE tax | $5,652 |
| Half-SE deduction (above-the-line) | $2,826 |
$80,000 freelancer
| Net Schedule C profit | $80,000 |
| × 0.9235 = taxable SE earnings | $73,880 |
| Social Security 12.4% (full) | $9,161 |
| Medicare 2.9% (full) | $2,143 |
| Total SE tax | $11,304 |
| Half-SE deduction (above-the-line) | $5,652 |
$120,000 freelancer
| Net Schedule C profit | $120,000 |
| × 0.9235 = taxable SE earnings | $110,820 |
| Social Security 12.4% (full) | $13,742 |
| Medicare 2.9% (full) | $3,213 |
| Total SE tax | $16,955 |
| Half-SE deduction (above-the-line) | $8,478 |
Half-SE deduction
After paying SE tax, you get to deduct half of it as an above-the-line adjustment on your federal return. It reduces your AGI (and therefore federal income tax) but does not reduce the SE tax itself.
How SE tax fits into quarterly payments
Freelancers don't pay SE tax separately from federal income tax — both are bundled into the four quarterly Form 1040-ES payments. The 2026 quarterly deadlines are April 15, June 15, September 15, and January 15 (2027). Use the quarterly tax calculator to see the combined number divided by four.
Self-employment tax FAQ
How is self-employment tax calculated in 2026?
SE tax = net Schedule C profit × 0.9235 × 15.3%. Social Security (12.4%) caps at the $184,500 wage base; Medicare (2.9%) has no cap. A 0.9% Medicare surtax applies above $200k single / $250k MFJ.
How much SE tax does a $40k freelancer pay?
About $5,652 — that's $40,000 × 0.9235 = $36,940 taxable SE earnings × 15.3%.
How much SE tax does an $80k freelancer pay?
About $11,304. The full Social Security portion still applies (well under the $184,500 cap).
How much SE tax does a $120k freelancer pay?
About $16,955. The 12.4% Social Security portion is still under the wage base, so the full 15.3% rate applies to the 92.35% taxable earnings figure.
Does SE tax replace federal income tax?
No. SE tax and federal income tax are separate, calculated on different worksheets, and stacked on top of each other. Both are paid together via the quarterly 1040-ES schedule.
Can I deduct any of the SE tax I pay?
Yes — half of your SE tax is deductible above-the-line on your federal return. It reduces AGI and therefore federal income tax (but not the SE tax itself).
How can I lower the SE tax I owe?
The fastest legitimate levers are tracking every Schedule C deduction (each $1,000 deducted saves ~$153 in SE tax) and considering S-corp election above ~$80k net SE income. The ranked 1099 deductions list and the complete freelance business expenses reference show every deductible category. See how to lower self-employment tax for the full strategy.
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Last updated: January 15, 2026. Disclaimer: Educational estimate only. Not tax or legal advice. Consult a licensed CPA before filing.