Self-employment tax calculator (2026)
Use Solvent's self-employment tax calculator to see your 2026 Social Security and Medicare tax on 1099 income: 15.3% of net earnings, with the 12.4% Social Security share stopping at the $184,500 wage base.1 It shows each step of that math with your own numbers, then splits the year's bill into quarterly payments so you know what to pay and when.
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. A net loss is fine. Enter it as a negative number.
Enables an accurate safe-harbor quarterly split
Estimated self-employment tax
Tax year 2026Single filer. 2026 figures from IRS Rev. Proc. 2025-32 and the SSA 2026 COLA fact sheet.
Quarterly schedule
How this is calculated
- $80,000 × 92.35% = $73,880.00
- $73,880.00 × 12.4% = $9,161.12 (Social Security)
- $73,880.00 × 2.9% = $2,142.52 (Medicare)
Assumptions
- Social Security wage base
- $184,500
- Social Security tax rate
- 12.4%
- Medicare tax rate
- 2.9%
Rates current for tax year 2026
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Quarterly payment estimate
$3,746
Rough estimate based on this year's numbers.
This rough estimate doesn't credit any W-2 withholding.
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.
The quarterly payment estimate above also factors in income tax: (net income − half of SE tax − standard deduction − QBI deduction) run through the current year's brackets. That QBI deduction is 20% of qualified business income, limited to 20% of taxable income before the deduction. It doesn't model the §199A phase-out or specified-service-trade limits at higher incomes. For the full current-year vs. safe-harbor comparison, use the Solvent quarterly tax calculator.
A net loss (net self-employment income entered as a negative number), $0 net income, and net earnings under the $400 Schedule SE filing threshold all correctly zero out self-employment tax. None of these reduce the income tax owed on any W-2 or other income the way a real return would: the quarterly payment estimate above only appears once net income is positive and above that threshold, so that offset isn't modeled here.
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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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Figures from IRS Rev. Proc. 2025-32 and the SSA wage base.
In this article
- How to use the self-employment tax calculator
- How to calculate self-employment taxes
- 2026 self-employment tax rates and thresholds
- Understanding self-employment taxes
- Self-employment tax on $80,000 of net profit for a single filer
- Related calculators
- Frequently asked questions about calculating self-employment taxes
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 self-employment tax 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.
What to set, and when to rerun it
Set your filing status so the calculator applies the right standard deduction, plus the QBI deduction where you're eligible. Run the numbers again whenever your income changes.
How to calculate self-employment taxes
To calculate self-employment taxes, start with your net profit: gross receipts minus ordinary business expenses. Multiply that by 92.35% for your self-employment tax base, then apply the combined 15.3% rate, which is 12.4% for Social Security up to the wage base and 2.9% for Medicare with no cap. Half of the result comes off your income before federal income tax is calculated, and the tables below show how W-2 wages and higher earnings change the math.
2026 self-employment tax rates and thresholds
IRS Revenue Procedure 2025-32 sets the 2026 brackets and standard deductions below, under the permanent bracket structure the One Big Beautiful Bill Act (OBBBA) put in place.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) |
W-2 wages get counted against the Social Security wage base before your 1099 income does. Earn $100,000 in wages and you've got $84,500 of room left for the 12.4% Social Security portion of your self-employment tax. The 2.9% Medicare piece still hits all of your net earnings either way, and the Additional Medicare Tax starts once wages and self-employment earnings together clear your filing status's threshold.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 also went up for 2026: $90,100 for single filers, phasing out above $500,000 of income, and $140,200 for joint filers, phasing out above $1,000,000. The AMT mostly affects high earners with large itemized deductions or incentive stock options. Most freelancers are well below it. Check it if your income reaches the higher brackets above.
Understanding self-employment taxes
Do I have to pay self-employment tax?
The $400 threshold
You owe self-employment tax once your net earnings hit $400 for the year. It doesn't matter whether the work is full-time, part-time, or a weekend thing you run next to a W-2 job. Clear the threshold and you file Schedule SE with your federal return.4
Exceptions to know
Church employees hit the threshold much sooner, at $108.28 from a qualifying religious organization. Statutory employees, meaning workers who get a W-2 with Social Security and Medicare already withheld, report on Schedule C but owe no SE tax on that income.
Partners generally owe it on their share of ordinary business income. Limited partners are the exception: they usually owe it only on guaranteed payments for work they performed. Investment income (capital gains, rents, ordinary dividends) doesn't trigger self-employment tax on its own.
Self-employment tax by income level
The table shows self-employment tax at four levels of net profit for a single filer with no W-2 income.
| 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 |
*Notice what happens at $200,000. The SE tax base ($184,700.00) just clears the $184,500 wage base, so Social Security stops at $22,878.00 and stays there no matter how much more you earn. The 2.9% Medicare tax has no such ceiling.
This is self-employment tax only. Federal income tax on what's left isn't included here. That depends on your standard deduction, your QBI deduction, and the bracket you land in.
How much should I set aside for taxes?
The 25-30% rule
A common rule of thumb is to hold back 25% to 30% of every payment for self-employment and income tax combined, and 35% to 40% if you earn a lot or live somewhere with a steep state rate. Federal tax alone often runs below 25% at lower incomes, and Solvent's guide to how much to set aside for taxes works out that share at six income levels. Nine states have no broad-based income tax at all (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming), so your reserve can run leaner if you're in one.
When to set the money aside
Move the money the day the payment clears. Waiting until the deadline is close is how freelancers end up short, because by then it's been spent. None of these percentages come from the IRS; they're planning numbers, and yours shifts with your income, filing status, and state.
When are quarterly estimated taxes due?
Quarterly estimated taxes are due four times a year: April 15, June 15, September 15, and January 15 of the following year. The periods behind those dates aren't evenly spaced: Q1 covers January 1 through March 31, Q2 covers only April 1 through May 31, Q3 runs June 1 through August 31, and Q4 stretches from September 1 through December 31. Any deadline that falls on a weekend or legal holiday moves to the next business day.
Use Form 1040-ES to work out each payment, then pay by check, through IRS Direct Pay, or through the Electronic Federal Tax Payment System.
Safe harbor: How to avoid the underpayment penalty
The penalty
Owe $1,000 or more at filing time without having paid enough during the year, and the IRS charges a penalty on the shortfall. The rate is the federal short-term rate plus three percentage points, which worked out to 7% for the quarter beginning July 1, 2026.5 It's simple interest, charged per quarter for the days you were late rather than a compounding balance, and Form 2210 is where the calculation lives.
How to avoid it
Pay at least 100% of last year's total tax liability across your four payments and the penalty can't touch you. Make it 110% if your prior-year adjusted gross income was over $150,000, or over $75,000 filing separately. The protection holds even if this year turns out much bigger: owe $5,000 last year, expect $20,000 this year, and you can send $1,250 a quarter, then settle the remaining $15,000 in April penalty-free.
What you can deduct before you calculate
Every deduction you claim shrinks net profit, and net profit is the base for both your self-employment tax and your income tax. The bar the IRS sets is that an expense be ordinary and necessary for your line of work. That's it.
Vehicle and mileage
If you drive for work, vehicle costs are often the biggest line on your list. You can take the standard mileage rate or deduct what the car costs you, but not both.
The 2026 rate is 72.5 cents a mile for miles driven January 1 to June 30 and 76 cents a mile from July 1 to December 31, after the IRS raised it mid-year. The 2025 rate was 70.0 cents. Log the date of each trip so you can apply the right rate.6 If you take accelerated depreciation on a vehicle, you can never use the standard mileage rate for that car.
Other business expenses
Software subscriptions, internet and hardware, business insurance, and professional fees are all deductible. Client meals are the one people overclaim, and they're 50%, not 100%. Big equipment purchases can often be written off the year you buy them under Section 179, up to $2,560,000 in 2026 (inflation added on top of OBBBA's $2,500,000 base), phasing out dollar for dollar once purchases pass $4,090,000.
Home office
The home office deduction needs a space you use regularly and exclusively for work. A kitchen table you also eat dinner at doesn't qualify, no matter how much work happens there. The simplified method allows $5 per square foot on up to 300 square feet, while the regular method applies the percentage of your home used for business to your rent, mortgage interest, utilities, and property taxes.
QBI deduction
Then there's the QBI deduction, 20% of qualified business income, which OBBBA made permanent. The 2026 phase-in runs $201,750 to $276,750 for single filers and heads of household, and $403,500 to $553,500 for joint filers, both wider than they were before OBBBA. Above that, specified service trades (health, law, consulting, financial services, among others) lose the deduction faster than other kinds of businesses do.
Self-employment tax on $80,000 of net profit for a 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.
Solvent quarterly tax estimator
Turn this into four quarterly payments
About the author
Nicolas Straut
Personal and business finance writer, former Forbes contributor
Nicolas Straut writes about self-employment and quarterly tax, LLC formation and costs, and tax software for Solvent. He has written about money for about ten years, including for the fintech companies NorthOne and Fundera. He files his own taxes as a freelancer. He isn't a CPA or an enrolled agent (EA).
More articles by Nicolas Straut →Frequently asked questions about calculating self-employment taxes
How do I calculate taxes if I'm self-employed?
To calculate taxes when you're self-employed, subtract business expenses from gross receipts to get your net profit, then multiply it by 92.35% for your self-employment tax base. Apply 15.3% to that base, add federal income tax on what's left, and the total is what your quarterly payments come from.
How much tax do I pay if I'm self-employed?
Self-employed people pay a flat 15.3% on adjusted net earnings up to the $184,500 Social Security wage base. Past that, only the 2.9% Medicare portion applies. Clear $200,000 as a single filer and an Additional Medicare Tax of 0.9% comes on top, with ordinary federal income tax running alongside all of it.
Do I have to pay self-employment tax if I make less than $10,000?
Making less than $10,000 doesn't get you out of self-employment tax. The threshold is $400 of net earnings (net profit × 92.35%) for the year, so $8,000 in net profit still means filing Schedule SE. Your income tax on that could well be zero after the standard deduction, but the self-employment tax is separate.
Is self-employment tax deductible?
Half of your self-employment tax is deductible, as an adjustment to income on your Form 1040 rather than a business expense on Schedule C. The deduction lowers your income tax, not the self-employment tax itself, and the calculator above shows the deductible half next to your total.
How much tax will I pay on $50,000 self-employed?
On $50,000 of net profit, self-employment tax comes to $7,064.78, which is $50,000 × 92.35% × 15.3%. Federal income tax on the remainder lands on top of that, and how much depends on your standard deduction, QBI deduction, and filing status.
What is the IRS tax rate for independent contractors?
The IRS has no single tax rate for independent contractors; two taxes stack on each other. Self-employment tax is 15.3% (12.4% Social Security, 2.9% Medicare), and on top of that you pay ordinary federal income tax, somewhere between 10% and 37% depending on your taxable income after deductions.
Sources
- https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
- https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill
- https://www.ssa.gov/news/en/cola/factsheets/2026.html
- https://www.irs.gov/taxtopics/tc554
- https://www.irs.gov/payments/quarterly-interest-rates
- https://www.irs.gov/pub/irs-irbs/irb26-29.pdf