Self-Employment Tax Calculator 2026 — SE Tax & Quarterly Payments

2026

Calculate SE tax, quarterly estimated payments, and total tax burden for freelancers and 1099 contractors. Free, instant results based on 2026 IRS rates.
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Net SE Income

$75,000.00

Self-Employment Tax

$10,597.16

Federal Income Tax

$6,504.31

Total Tax

$17,101.47

Effective Rate

22.80%

Self-Employment Tax Breakdown

Gross SE Income$75,000.00
Business Expenses- $0.00
Net SE Income$75,000.00
SE Tax Base (92.35% of net)$69,262.50
Social Security Tax (12.4%)$8,588.55
Medicare Tax (2.9%)$2,008.61
Total Self-Employment Tax$10,597.16
50% SE Tax Deduction- $5,298.58
Adjusted Gross Income (AGI)$69,701.42
Standard Deduction- $16,100.00
Taxable Income$53,601.42
Federal Income Tax$6,504.31
Total Tax (Federal + SE)$17,101.47

Quarterly Estimated Payment Schedule

Annual Estimated Tax$17,101.47
Q1 — Due April 15$4,275.37
Q2 — Due June 15$4,275.37
Q3 — Due September 15$4,275.37
Q4 — Due January 15 (next year)$4,275.37

Use the Self-Employment Tax Calculator 2026 — SE Tax & Quarterly Payments above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Self-employment (SE) tax is the Social Security and Medicare tax paid by individuals who work for themselves, including freelancers, independent contractors, sole proprietors, and partners. Employees split FICA taxes with their employer (each pays 7.65%), but self-employed individuals pay both halves, totaling 15.3%. This breaks down into 12.4% for Social Security (on net earnings up to $184,500 in 2026) and 2.9% for Medicare (on all net earnings, with an additional 0.9% on earnings above $200,000 for single filers).

SE tax is not calculated on gross revenue. Instead, you first determine net self-employment income by subtracting business expenses from gross income on Schedule C. Then, only 92.35% of that net income is subject to SE tax. This 92.35% factor (1 minus half of 15.3%) exists because employees are not taxed on the employer's share of FICA, so the IRS applies a similar adjustment for the self-employed. On Schedule SE, you multiply your net self-employment earnings by 0.9235 to arrive at the taxable base.

Self-employed individuals can deduct the employer-equivalent portion of SE tax (half of the total SE tax) as an above-the-line deduction on Form 1040. This deduction reduces your adjusted gross income (AGI) and therefore your income tax, but it does not reduce the SE tax itself. For example, if your SE tax is $14,000, you deduct $7,000 from your AGI, which at a 22% marginal rate saves $1,540 in income tax. This deduction is taken regardless of whether you itemize.

Because self-employed workers do not have tax withheld from their pay, the IRS requires quarterly estimated tax payments (Form 1040-ES) due on April 15, June 15, September 15, and January 15 of the following year. Failure to make adequate estimated payments can result in an underpayment penalty. The safe harbor rule allows you to avoid the penalty by paying at least 100% of the prior year's total tax liability (110% if AGI exceeds $150,000) or 90% of the current year's liability, whichever is smaller.

Example: Freelance designer, $95,000 net self-employment income

  1. 1 Step 1: Start with net self-employment income of $95,000 (gross revenue minus business expenses from Schedule C).
  2. 2 Step 2: Calculate the taxable base. $95,000 x 92.35% = $87,732.50. This is the amount subject to self-employment tax.
  3. 3 Step 3: Calculate SE tax. Social Security: $87,732.50 x 12.4% = $10,878.83. Medicare: $87,732.50 x 2.9% = $2,544.24. Total SE tax = $13,423.07.
  4. 4 Step 4: Deductible half of SE tax = $13,423.07 / 2 = $6,711.54. This reduces AGI from $95,000 to $88,288.46 for income tax purposes, saving approximately $1,477 in federal income tax at the 22% bracket.
  5. 5 Step 5: Total federal tax burden = $13,423 (SE tax) + income tax on $88,288 AGI (approximately $10,600 after standard deduction for a single filer) = approximately $24,023. Quarterly estimated payments should be at least $6,006 each.

Source: IRS — Self-Employment Tax (Schedule SE) · Last updated: January 2026

Frequently Asked Questions

How much is self-employment tax?
Self-employment tax is 15.3% of net self-employment earnings: 12.4% for Social Security (on earnings up to $184,500 in 2026) and 2.9% for Medicare (on all earnings). An additional 0.9% Medicare surtax applies to earnings above $200,000 for single filers. The tax is calculated on 92.35% of your net self-employment income.
Why do self-employed people pay more than employees?
Self-employed individuals pay both the employee and employer shares of Social Security and Medicare taxes, totaling 15.3%. W-2 employees only see 7.65% deducted from their paycheck because the employer pays the other 7.65% separately. To partially offset this, the self-employed can deduct half of their SE tax from their adjusted gross income.
What is the 92.35% rule for self-employment tax?
Before calculating SE tax, you multiply net self-employment earnings by 92.35% (or 0.9235). This adjustment mimics the fact that W-2 employees are not taxed on the employer's share of FICA. On $100,000 of net SE income, the taxable base is $92,350, and the SE tax is approximately $14,130 rather than $15,300.
When are quarterly estimated tax payments due?
Quarterly estimated tax payments are due April 15, June 15, September 15, and January 15 of the following year. These cover both income tax and self-employment tax. If you fail to pay enough each quarter, the IRS may charge an underpayment penalty. Use Form 1040-ES to calculate and submit quarterly payments.
Can I deduct half of my self-employment tax?
Yes. You can deduct the employer-equivalent portion (half) of your self-employment tax as an above-the-line adjustment to income on Form 1040, Line 15. This reduces your adjusted gross income and your income tax, but it does not reduce the self-employment tax itself. The deduction is available whether or not you itemize.
Do I owe self-employment tax on side hustle income?
Yes. If your net self-employment earnings from all sources (freelancing, gig work, side business) exceed $400 in a year, you must pay self-employment tax. This applies even if you also have a W-2 job. Your W-2 wages count toward the Social Security wage cap, which may reduce the Social Security portion of your SE tax.
What business expenses can I deduct to lower my SE tax?
Ordinary and necessary business expenses reduce your net self-employment income, which directly reduces SE tax. Common deductions include home office expenses, business equipment, software subscriptions, vehicle mileage, health insurance premiums, professional development, and supplies. These are reported on Schedule C and subtracted from gross revenue before SE tax is calculated.

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