Self-employment tax calculator (2026): Estimate your 1099 & SE tax
Self-employment tax is a flat 15.3% on your net earnings from self-employment. That breaks down to 12.4% for Social Security, up to the $184,500 wage base, and 2.9% for Medicare, which has no cap.1 Solvent's calculator shows the exact math behind that number, then splits your annual liability into quarterly estimates so you know what to pay and when.
Freelancing gives you real independence, but nobody is withholding taxes from your paycheck for you. That job falls to you, four times a year, whether you feel ready for it or not. This guide walks through the mechanics of self-employment tax with clear formulas and worked examples, so you can plan your quarterly payments instead of guessing at them.
See exactly how your Social Security and Medicare tax is calculated, and what to set aside for your next quarterly payment.
Reduces how much SE income is still subject to Social Security.
Net profit from Schedule C, line 31.
Enables an accurate safe-harbor quarterly split.
How much self-employment tax will I pay?
A quick reference for single filers with no W-2 income, at three common income levels, using 2026 numbers.
| Net SE income | Total SE tax |
|---|---|
| $50,000 | $7,064.78 |
| $80,000 | $11,303.64 |
| $120,000 | $16,955.46 |
How this is calculated
Net self-employment income is multiplied by 92.35% to get net earnings from self-employment. Social Security tax is 12.4% of that figure, up to the year's wage base (any W-2 wages reduce the remaining room under that cap). Medicare tax is 2.9% of the full amount, uncapped. An Additional Medicare Tax of 0.9% applies only once your combined earned income passes your filing status's threshold.
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This is an estimate, not tax advice. It covers federal self-employment tax only. State income tax is not calculated.
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2026 figures verified against IRS Rev. Proc. 2025-32 and the SSA wage base.
How to use the self-employment tax calculator
What to enter
Start with your expected net business profit, meaning your total 1099 income minus business expenses. Add any W-2 wages from a traditional job, and the calculator accounts for how those wages interact with the Social Security wage base. From there, it applies the 92.35% adjustment and the current tax-year brackets automatically.
What you'll see
You'll see the full breakdown: Social Security tax, Medicare tax, your above-the-line deduction, and your total estimated liability split into four quarterly payments. If you enter your prior year's tax liability, it'll also show the IRS safe harbor amount next to a rough current-year estimate, so you can compare the two.
Get the most accurate estimate
Pick your filing status to get an accurate standard deduction and QBI deduction where you're eligible. Run the numbers again whenever your income changes.
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How to calculate self-employment taxes
Start with your net profit: gross receipts minus ordinary business expenses. Multiply that by 92.35% to find your self-employment tax base, then apply the combined 15.3% rate (12.4% for Social Security, capped at the wage base, plus 2.9% for Medicare, uncapped). Deduct half of that total from your income when you calculate federal income tax. The exact numbers, including how W-2 wages and higher earnings change the math, are below.
2026 self-employment tax rates and thresholds
The One Big Beautiful Bill Act (OBBBA) permanently locked in the bracket structure and deduction amounts below for 2026, per IRS Revenue Procedure 2025-32.2
| Payroll tax element | 2026 threshold or rate |
|---|---|
| Social Security wage base | $184,500 |
| Social Security rate (SE) | 12.4% |
| Medicare rate (SE) | 2.9% |
| Additional Medicare threshold (single/HoH) | $200,000 |
| Additional Medicare threshold (married filing jointly) | $250,000 |
| Additional Medicare threshold (married filing separately) | $125,000 |
| Additional Medicare rate | 0.9% |
| SE tax base factor | 92.35% of net profit |
| Filing threshold | $400 net earnings ($108.28 for church employees) |
If you also earn W-2 wages, they count against the Social Security wage base first. Someone with $100,000 in W-2 wages has only $84,500 of remaining capacity subject to the 12.4% Social Security portion of their self-employment tax. The 2.9% Medicare tax still applies to all of their net earnings regardless, and the Additional Medicare Tax kicks in once combined wages and self-employment earnings cross the threshold for their filing status.3
| Filing status | 2026 standard deduction |
|---|---|
| Single | $16,100 |
| Married filing jointly | $32,200 |
| Head of household | $24,150 |
| Married filing separately | $16,100 |
| Tax rate | Single filers | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | $0 to $12,400 | $0 to $24,800 | $0 to $17,700 |
| 12% | $12,401 to $50,400 | $24,801 to $100,800 | $17,701 to $67,450 |
| 22% | $50,401 to $105,700 | $100,801 to $211,400 | $67,451 to $105,700 |
| 24% | $105,701 to $201,775 | $211,401 to $403,550 | $105,701 to $201,750 |
| 32% | $201,776 to $256,225 | $403,551 to $512,450 | $201,751 to $256,200 |
| 35% | $256,226 to $640,600 | $512,451 to $768,700 | $256,201 to $640,600 |
| 37% | $640,601 or more | $768,701 or more | $640,601 or more |
The Alternative Minimum Tax exemption rose for 2026 as well: $90,100 for single filers, phasing out starting at $500,000 of income, and $140,200 for married couples filing jointly, phasing out starting at $1,000,000. This mainly affects high earners with large itemized deductions or incentive stock options. Most freelancers won't come close to it, but keep it in mind if your income is climbing toward the higher brackets above.
Understanding self-employment taxes
Do I have to pay self-employment tax?
The $400 threshold
Yes, if your net earnings from self-employment equal $400 or more. That applies whether your freelance work is full-time, part-time, or a side hustle you run alongside a W-2 job. Clear the threshold and you file Schedule SE with your federal return, no exceptions for how small the business feels.4
Exceptions to know
A few carve-outs are worth knowing. Church employees pay this tax on earnings of $108.28 or more from a qualifying religious organization. Statutory employees (workers who receive a W-2 with Social Security and Medicare already withheld) report income on Schedule C but don't owe SE tax on it. Partners in a business generally owe SE tax on their share of ordinary income, though limited partners typically only owe it on guaranteed payments for services actually rendered. Investment income, such as capital gains, rental income, and ordinary dividends, never triggers self-employment tax on its own.
What you'll owe by income level
Your tax scales directly with net profit. Here's the math at four income levels for a single filer with no W-2 income, using the 2026 standard deduction:
| Net profit | SE tax base (×92.35%) | Social Security (12.4%) | Medicare (2.9%) | Total SE tax | 50% deduction |
|---|---|---|---|---|---|
| $50,000 | $46,175.00 | $5,725.70 | $1,339.08 | $7,064.78 | $3,532.39 |
| $80,000 | $73,880.00 | $9,161.12 | $2,142.52 | $11,303.64 | $5,651.82 |
| $120,000 | $110,820.00 | $13,741.68 | $3,213.78 | $16,955.46 | $8,477.73 |
| $200,000 | $184,700.00* | $22,878.00* | $5,356.30 | $28,234.30 | $14,117.15 |
*At $200,000 net profit, the SE tax base ($184,700.00) slightly exceeds the $184,500 Social Security wage base, so the Social Security portion caps at $22,878.00 instead of continuing to scale with income. The 2.9% Medicare tax has no such cap, no matter how high your profit climbs.
This is self-employment tax only. It doesn't include federal income tax on the remaining balance, which depends on your standard deduction, QBI deduction, and marginal bracket.
How much should I set aside for taxes?
The 25-30% rule
A common rule of thumb among tax professionals is setting aside 25% to 30% of every payment for combined federal self-employment and income tax. High earners, or anyone living in a state with steep income tax rates, should plan for more, closer to 35-40%. Nine states currently levy no broad-based income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming), which lowers the needed reserve if you live in one of them.
When to set the money aside
Move the money the moment a payment clears. Waiting until the quarterly deadline gets close is the most common way freelancers end up short. This is a planning guideline, not an IRS-set percentage, so your actual rate depends on your total income, filing status, and state.
When are quarterly estimated taxes due?
The IRS requires four payments a year, and the periods aren't evenly spaced. Q1 (January 1 through March 31) is due April 15. Q2 (April 1 through May 31), a shorter two-month stretch, is due June 15. Q3 (June 1 through August 31) is due September 15. Q4 (September 1 through December 31) is due January 15 of the following year. Deadlines that land on a weekend or federal holiday shift to the next business day. Use Form 1040-ES to calculate and submit payments, either by check or through the Electronic Federal Tax Payment System.
Safe harbor: How to avoid the underpayment penalty
The penalty
The IRS penalizes taxpayers who owe more than $1,000 at filing time without having paid enough throughout the year. The penalty rate is the federal short-term rate plus three percentage points, compounded daily. It was 7% for the quarter beginning July 1, 2026, for example.5 Form 2210 governs the calculation.
How to avoid it
You avoid the penalty entirely by paying at least 100% of your prior year's total tax liability across your four quarterly payments (110% if your prior-year adjusted gross income exceeded $150,000, or $75,000 if you're married filing separately). This protects you even if your income grows a lot during the current year. A freelancer who owed $5,000 last year and expects to owe $20,000 this year can pay $1,250 each quarter, then settle the remaining $15,000 in April with no penalty at all.
What you can deduct before you calculate
Every legitimate deduction lowers your net profit, which reduces both your self-employment tax and your income tax. The IRS allows deductions for expenses that are ordinary and necessary for your trade, nothing more exotic than that.
Vehicle and mileage
Vehicle expenses are one of the biggest deductions for anyone who drives for work. You can use the standard mileage rate or deduct actual expenses. For 2026, the IRS set the business mileage rate at 72.5 cents per mile for January through June, then raised it mid-year to 76 cents per mile for July through December, the first mid-year adjustment since 2022, driven by rising gas prices.6 Once you use accelerated depreciation on a vehicle, you can't switch back to the standard mileage rate for it later.
Other business expenses
Other deductible categories include software subscriptions, internet and hardware costs, business insurance, and professional fees. Business meals with clients are generally 50% deductible, not 100%. Capital equipment purchases can often be expensed immediately under Section 179, which allows up to $2,560,000 in 2026 (an inflation adjustment on top of OBBBA's $2.5 million base), phasing out dollar for dollar above $4,090,000 in purchases.
Home office
The home office deduction requires a space used regularly and exclusively for business, not a kitchen table you also eat dinner at. The simplified method allows $5 per square foot, up to 300 square feet. The regular method applies the percentage of your home used for business to your rent, mortgage interest, utilities, and property taxes instead.
QBI deduction
Eligible freelancers can also claim the QBI deduction: 20% of qualified business income, made permanent under OBBBA. The phase-in range for 2026 runs from $201,750 to $276,750 for single filers and heads of household, and from $403,500 to $553,500 for joint filers, ranges that OBBBA widened for 2026. Above that, specified service trades (health, law, consulting, financial services, among others) lose the deduction faster than other kinds of businesses do.
Worked example: $80,000 net profit, single filer
| Net earnings from self-employment | $73,880.00 |
| Social Security tax | $9,161.12 |
| Medicare tax | $2,142.52 |
| Total self-employment tax | $11,304 |
| Deductible half | $5,651.82 |
Run these same numbers through the calculator above to see every intermediate step.
Frequently asked questions about calculating self-employment taxes
How do I calculate taxes if I'm self-employed?
Subtract business expenses from gross receipts to find your net profit, then multiply by 92.35% to get your tax base. Apply the 15.3% rate to that base for your self-employment tax, then add standard federal income tax on what's left. The total is what determines your quarterly payments.
How much tax do I pay if I'm self-employed?
You pay a flat 15.3% on adjusted net earnings up to the Social Security wage base of $184,500. Earnings above that limit face only the 2.9% Medicare tax. High earners pay an Additional Medicare Tax of 0.9% on income over $200,000 (single). Standard federal income tax applies on top, based on your overall marginal bracket.
Do I have to pay self-employment tax if I make less than $10,000?
Yes. Federal law requires payment once net earnings reach $400 or more during the year. Earning $8,000 in net profit still requires filing Schedule SE, even though your overall income tax liability might end up low or zero once the standard deduction is applied.
How much money should I set aside for taxes if I'm self-employed?
Reserve roughly 25% to 30% of net income for combined federal self-employment and income tax. Bump that up to 35-40% if you're a high earner or you live somewhere with steep state income tax. Move the funds to a separate account as soon as you're paid, not at tax time.
How much tax will I pay on $50,000 self-employed?
At $50,000 of net profit, your self-employment tax comes out to $7,064.78 (that's $50,000 times 92.35% times 15.3%). Your final bill also includes federal income tax on the remainder, which depends on your standard deduction, QBI deduction, and filing status.
What is the IRS tax rate for independent contractors?
The base self-employment tax rate is 15.3%: 12.4% for Social Security and 2.9% for Medicare. Independent contractors also pay standard progressive federal income tax, anywhere from 10% to 37%, on their taxable income after deductions.
Nicolas Straut
Personal and business finance writer, former Forbes contributor