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Self-Employment Tax Calculator (2026)
Self-employment tax is 15.3% of your net profit, and it is separate from income tax. This works out both.
Self-employment tax is how a freelancer pays Social Security and Medicare. An employee splits it with their employer; working for yourself, you pay both halves — 12.4% for Social Security and 2.9% for Medicare, 15.3% together.
It is charged on 92.35% of net profit, not on everything you invoice. Business expenses come off first, which is why tracking them properly changes the bill rather than just the paperwork.
The Social Security half stops at $184,500 of earnings for 2026. If you also hold a salaried job, the wages on your W-2 use that allowance up first — a detail most calculators ignore, and one that can change the answer by thousands.
Medicare has no ceiling, and an extra 0.9% applies to higher earners. Half of the total is deductible against income tax, so the true cost is lower than the headline rate suggests.
Common questions
Do I pay self-employment tax as well as income tax?
Yes. They are separate calculations on the same profit, which is why a rule of thumb like "set aside 25%" is unreliable — it can be far too little at higher incomes.
When do I start owing it?
At $400 of net self-employment earnings for the year. Below that, no self-employment tax is due, though income tax may still apply.
Does a W-2 job reduce it?
Yes, for the Social Security portion. Your wages consume the $184,500 base before your freelance profit does, so someone with a substantial salary may owe only the Medicare part on their freelance work.
Can I deduct any of it?
Half — the employer-equivalent share — is deductible against income tax. It does not reduce the self-employment tax itself.