SEP IRA Contribution Calculator
2026Calculate max SEP IRA contribution with the self-employed adjustment. 2026 cap: $72,000.
By Konstantin Iakovlev · Updated April 2026 · Source: IRS
Max SEP Contribution
$27,900.00
Effective Contribution Rate
18.60%
Tax Savings (24% bracket)
$6,696.00
Contribution Calculation
| Net SE Income | $150,000.00 |
| Less: 50% of SE Tax | - $10,500.00 |
| Adjusted Income | $139,500.00 |
| Contribution (20% of adjusted) | $27,900.00 |
| Your SEP Contribution | $27,900.00 |
Estimated Tax Savings by Bracket
| 22% Bracket | $6,138.00 |
| 24% Bracket | $6,696.00 |
| 32% Bracket | $8,928.00 |
Use the SEP IRA Contribution Calculator 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-employed workers and small business owners can shelter a sizable share of income through a SEP IRA, and this tool pins down the maximum contribution allowed for the 2026 tax year with the self-employment tax adjustment built in. Knowing that ceiling matters, because it drives both your retirement savings and the deduction you can claim. For 2026 the cap reaches $72,000, which is what makes the plan such a heavyweight savings option.
Two steps govern the math. The first finds your net earnings from self-employment by taking gross self-employment income and subtracting one-half of your self-employment tax. The second applies your chosen contribution rate, up to 25%, to that adjusted figure, capping the result at the lesser of the 2026 limit of $72,000 or 25% of your compensation.
For a self-employed person, 'compensation' means exactly those net earnings from self-employment after the adjustment above, not your gross income. The 25% rate likewise applies to adjusted net earnings rather than gross receipts, a distinction that trips up many filers. Contributions you've directed to other qualified plans also enter the picture, since they bear on your overall limit.
Example: Freelance Designer's 2026 SEP IRA Contribution
- 1 Step 1: Input Gross Self-Employment Income. Let's say a freelance graphic designer has gross self-employment income of $150,000 for 2026.
- 2 Step 2: Calculate Adjusted Net Earnings. The calculator first determines the self-employment tax (social security and Medicare) on the $150,000, which is approximately $21,195. Then, half of this ($10,597.50) is subtracted from the gross income, resulting in adjusted net earnings of $139,402.50.
- 3 Step 3: Determine Maximum Contribution. The maximum contribution is 25% of the adjusted net earnings: 0.25 * $139,402.50 = $34,850.63. Since this is below the $72,000 cap, the full amount is allowed.
- 4 Step 4: Result. The freelance designer can contribute $34,850.63 to their SEP IRA for the 2026 tax year, significantly reducing their taxable income while boosting their retirement savings.
Source: IRS · Last updated: April 2026
Frequently Asked Questions
How much can I contribute to a SEP IRA in 2026?
What is the SEP IRA deadline for contributions?
Can I have a SEP IRA and a Traditional IRA?
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