Self-Employment Tax Calculator
US self-employment tax for 2026 (Social Security and Medicare on your own business profit), the half you can deduct, the additional Medicare tax, and a W-2 employee versus 1099 contractor comparison.
Result…
How it's calculated
Net earnings = profit × 92.35% SE tax = 12.4% × min(net earnings, 184,500 − W-2 wages) + 2.9% × net earnings (none if net earnings < 400) Deductible half = SE tax × 50% Additional Medicare = 0.9% × (net earnings − (threshold − W-2 wages)) W-2 vs 1099: employee keeps salary − 7.65% FICA; contractor keeps rate × hours − expenses − SE tax − own benefits
Follows Schedule SE (Form 1040) for tax year 2026: multiply the year's self-employment profit by 92.35%, charge 12.4% Social Security on that up to the 2026 wage base of 184,500 (less any W-2 wages already taxed for Social Security) and 2.9% Medicare on all of it. Half of the result is deductible from income. The 0.9% additional Medicare tax applies above 200,000 (250,000 joint, 125,000 separate), with the threshold reduced by your wages, as IRS Topic 560 explains. The second mode compares a W-2 salary with a 1099 contractor rate: the employee pays 7.65% and the employer pays the same again, while the contractor pays both halves and buys their own benefits, using costs you enter. It shows the break-even hourly rate.
Your numbers, step by step
About the Self-Employment Tax calculator
This self-employment tax calculator works out the US Social Security and Medicare tax that freelancers, sole proprietors and independent contractors pay on their own profit for tax year 2026, the way Schedule SE does. It takes 92.35% of your net profit, charges 12.4% Social Security up to the 2026 wage base of 184,500 (less any W-2 wages already taxed) and 2.9% Medicare on all of it, then shows the half you can deduct and the 0.9% additional Medicare tax above your filing status threshold. A second mode compares a W-2 salary with a 1099 contractor rate, counting the employer's share of payroll tax and the cost of buying your own benefits, and finds the break-even hourly rate. Federal income tax and state taxes are not included. Amounts are US dollars.
How to use it
- Choose “Self-employment tax” or “W-2 vs 1099” under “Calculate”.
- For self-employment tax, pick your “Filing status”, enter your “Net profit from self-employment” and any “W-2 wages with Social Security withheld”.
- For the comparison, enter the “Employee salary” and “Employer-paid benefits”, then the “Contractor hourly rate”, “Billable hours a year”, “Business expenses a year” and “Cost of buying your own benefits a year”.
- Read the result and the working, including the deductible half or the break-even rate.
Worked example
A freelancer with 60,000 of net profit and no other job has net earnings of 60,000 × 92.35% = 55,410. Social Security is 12.4% × 55,410 = 6,870.84 and Medicare is 2.9% × 55,410 = 1,606.89, so self-employment tax is 8,477.73, or 14.13% of profit, and half of it, 4,238.87, is deductible. In the comparison mode, an 80,000 salary keeps 73,880 after the employee's 7.65%, while 60 an hour for 1,800 hours less 5,000 of expenses, 14,553.44 of self-employment tax and 12,000 of own benefits keeps 76,446.56: 2,566.56 more, with a break-even rate of 58.34 an hour.
Updated
Questions people ask
How is self-employment tax calculated?
Multiply net profit by 92.35%, then add 12.4% of that amount up to the Social Security wage base (184,500 in 2026, reduced by W-2 wages) and 2.9% of all of it. There is nothing to pay if the 92.35% figure is under 400. The IRS self-employment tax page explains the rates.
Why is self-employment tax 15.3% when employees pay 7.65%?
An employee pays 7.65% and the employer pays another 7.65%. A self-employed person is both, so pays the full 15.3%, but on 92.35% of profit, and can deduct half of it from income.
Is the deductible half taken off my self-employment tax?
No. It reduces your adjusted gross income for income tax, not the self-employment tax itself. Enter it as an adjustment in the US income tax calculator.
What hourly rate should a contractor charge to match a salary?
It depends on your billable hours, expenses and the benefits you lose, which is why the comparison mode asks for your own figures. Fewer billable hours raise the break-even rate quickly. The freelance rate calculator can help set a rate from your costs.
What does this self-employment tax estimate leave out?
Income tax, the qualified business income deduction, state and local taxes, the optional farm and non-farm methods, and the legal test of whether you are an employee or a contractor. For your return or a contract decision, check IRS guidance or ask a tax professional.