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Free Self-Employment Tax Calculator (Schedule SE)
Compute self-employment tax under IRC § 1401 / Schedule SE: SE earnings = net SE × 92.35%; SS portion = 12.4% capped at the wage base (reduced by any W-2 wages); Medicare = 2.9% uncapped; Additional Medicare = 0.9% above $200k single / $250k MFJ. Also shows the deductible half (above-the-line on Schedule 1 line 15) and the suggested quarterly 1040-ES payment.
Use 2026 for current-year quarterly estimates; switch to 2025 for the return you file in early 2026.
Your self-employment income
From Schedule C line 31 or K-1 (partnership SE income). This is gross revenue minus business expenses, BEFORE SE tax.
If you also have a W-2 job, those wages use up part of your Social Security wage base. Leave at 0 if pure freelancer.
Self-employment tax
$11,304
≈ $2,826 per quarter (1040-ES).
Above-the-line deduction
$5,652
Half of SE tax is deductible from gross income on Schedule 1 line 15. At a 24% marginal rate, that saves you $1,356 in federal income tax.
SE tax owed
$11,304
$2,826 per quarter · $5,652 deduction
SE tax
$11,304
Quarterly
$2,826
📐 Open methodology, sources & limitations
Formula
SE earnings = net SE income × 92.35% (IRC §1402(a)(7) multiplier) Social Security portion = min(SE earnings, max(0, SS wage base − W-2 wages)) × 12.4% Medicare portion = SE earnings × 2.9% (uncapped) Additional Medicare = max(0, (W-2 wages + SE earnings) − threshold) × 0.9% Total SE tax = Social Security + Medicare + Additional Medicare Deductible half = Total SE tax × 50% (above-the-line, Schedule 1 line 15 — IRC §164(f)) Suggested quarterly payment = Total SE tax ÷ 4
Assumptions
- Social Security wage base follows the selected tax year: $176,100 for 2025, $184,500 for 2026 (per SSA). Combined SS rate 12.4%, combined Medicare rate 2.9% — unchanged between years.
- W-2 wages you enter consume Social Security wage-base room first, reducing the cap available for SE earnings.
- Additional Medicare Tax 0.9% applies to combined W-2 + SE earnings above $200,000 (single) / $250,000 (MFJ) — statutory thresholds, not inflation-indexed.
- Net SE income is taken as entered (Schedule C line 31 or partnership K-1) — no business deductions are recomputed.
- Suggested quarterly payment covers SE tax only; it does not include regular income tax.
Sources
- IRC §1401 — Rate of tax on self-employment income — §1401
- IRC §1402(a)(7) — Net earnings from self-employment (92.35% multiplier) — §1402(a)(7)
- IRC §1401(b)(2) — Additional Medicare Tax on self-employment income — §1401(b)(2)
- IRC §164(f) — Deduction for one-half of self-employment tax — §164(f)
- IRS Schedule SE Instructions — Self-Employment Tax
- Social Security Administration — contribution and benefit base ($176,100 for 2025; $184,500 for 2026)
This tool does NOT model:
- Church-employee SE income (Schedule SE Part II)
- Optional methods for low self-employment income
- S-corp owner-operator distinction (S-corp distributions are not subject to SE tax)
- Regular federal income tax, QBI deduction, and retirement-plan contributions
- State and local taxes
Last reviewed: 2026-06-12 · Tax year modeled: 2025 & 2026 (selectable)
This methodology section exists so you can verify the math. We show our formulas because you deserve to know how a number was calculated. This is calculation transparency, not financial advice.
What changed for 2026
The self-employment tax rates did not change for 2026 — the 12.4% Social Security and 2.9% Medicare portions, the 92.35% multiplier, and the 0.9% Additional Medicare thresholds are all the same. What moved is the Social Security wage base, which the SSA raised from $176,100 to $184,500. That only matters if your SE earnings (or combined W-2 wages + SE earnings) land in that range: more of your income is exposed to the 12.4% portion in 2026. For most freelancers below the cap, the bill is identical in both years — SE tax on $100,000 of net profit is $14,129.55 ($100,000 × 92.35% × 15.3%) either way. If you price your work hourly, the freelance rate calculator bakes this tax into your rate.
| Figure | 2025 | 2026 |
|---|---|---|
| Social Security wage base | $176,100 | $184,500 |
| Maximum Social Security portion of SE tax (12.4%) | $21,836.40 | $22,878.00 |
| Combined SE tax rate | 15.3% | 15.3% |
| SE earnings multiplier | 92.35% | 92.35% |
The Schedule SE formula in plain English
Self-employed people pay both halves of FICA (Social Security + Medicare) on their net business income. Where a W-2 employee pays 7.65% and their employer pays the matching 7.65%, you pay the full 15.3% — that's self-employment tax. The exact computation under IRC § 1401 and Schedule SE:
- SE earnings = net SE income × 92.35%. This is the IRC § 1402(a)(7) multiplier — it bakes in the deductible-half-of-SE-tax offset so that you don't pay SE tax on the part of your income that the SE tax itself reduces.
- SS portion = SE earnings × 12.4% — capped at the SS wage base ($176,100 for 2025, $184,500 for 2026, per SSA). If you have W-2 wages from a job, those wages use up part of the cap and only the remainder is available for your SE earnings.
- Medicare portion = SE earnings × 2.9% — uncapped. The full 2.9% (both halves of the 1.45% Medicare tax) applies to every dollar.
- Additional Medicare = 0.9% on combined W-2 + SE earnings above $200k single / $250k MFJ (IRC § 1401(b)(2)).
- Total SE tax = SS + Medicare + Additional Medicare.
The good news: half of SE tax is deductible from gross income on Schedule 1 line 15 (IRC § 164(f)). It's above-the-line, so you get it whether you itemize or take the standard deduction. At a 24% federal marginal rate, that deduction saves you roughly 24% × (SE tax ÷ 2) in regular income tax.
Common SE tax mistakes
- Not paying quarterly. SE tax + income tax must be paid as you earn through quarterly 1040-ES vouchers (4/15, 6/15, 9/15, 1/15). The underpayment penalty (IRC § 6654) bites if you withhold less than 90% of current-year tax OR 110% of prior-year tax (110% for AGI > $150k). Plan your payments with the quarterly estimated tax calculator.
- Forgetting the deductible half. Many DIY filers compute SE tax but forget the Schedule 1 line 15 deduction. At 24% bracket, that's 24% × $7,000 SE tax / 2 = $840 of tax you owe that you shouldn't.
- Confusing SE tax with income tax. They're separate. A 1099-only person earning $80k owes ~$11k SE tax PLUS ~$10k income tax. Total tax bill is ~26%, not 15.3%. Weighing a contract against a salaried offer? The 1099 vs W-2 calculator nets it all out.
- Not contributing to retirement. SEP-IRA, Solo 401(k), or SIMPLE IRA contributions reduce your income tax (not your SE tax). A SEP at 20% of net SE income shelters $16,000 of income on $80k SE — directly reducing your federal income tax bill.
- Missing the QBI deduction. Qualified Business Income deduction (IRC § 199A) can knock 20% off your pass-through income for federal income tax purposes (subject to phase-outs). Doesn't reduce SE tax but a meaningful income-tax benefit.
Frequently Asked Questions
What is self-employment tax?+
Self-employment tax is the combined Social Security + Medicare tax that self-employed people pay on net business income. W-2 employees pay 7.65% (half of FICA) and their employer pays the matching 7.65%; self-employed people pay both halves = 15.3%. Codified at IRC § 1401.
What is the 92.35% multiplier?+
Per IRC § 1402(a)(7), SE earnings are computed as net SE income × 92.35%. This adjusts for the fact that half of SE tax is deductible — the multiplier ensures you don't pay SE tax on the part of your income that the SE tax itself reduces.
Why is the deductible half not a credit?+
It's an above-the-line deduction on Schedule 1 line 15 (IRC § 164(f)) — reduces your AGI for regular federal income tax purposes. Not a dollar-for-dollar credit against SE tax. Still valuable: at 24% marginal rate, $7,000 SE tax → $3,500 deduction → $840 income-tax savings.
Do I need to pay SE tax quarterly?+
Yes, in most cases. The IRS expects quarterly 1040-ES vouchers (4/15, 6/15, 9/15, 1/15) covering both income tax and SE tax. The safe-harbor rule (IRC § 6654) waives the underpayment penalty if you pay 90% of current-year tax or 110% of prior-year tax (110% for AGI > $150k).
What if I also have W-2 wages?+
W-2 wages use part of your SS wage base ($176,100 for 2025, $184,500 for 2026) — only the remainder is available for SE earnings. Medicare 2.9% still applies to all SE earnings regardless of W-2. If combined wages exceed the Additional Medicare threshold ($200k single / $250k MFJ), the 0.9% applies to the excess.
Can I deduct business expenses?+
Yes — net SE income is your gross revenue minus ordinary and necessary business expenses (Schedule C). Home office, mileage, internet, professional fees, retirement contributions, health insurance premiums — all reduce net SE income, which in turn reduces SE tax. Major SE-tax-reduction lever for most freelancers.
How does an S-corp election change SE tax?+
In an S-corp, you pay yourself a reasonable salary (W-2) and take the rest as distributions. Only the salary is subject to FICA (employer + employee paying 7.65% each = 15.3% total). The distributions are NOT subject to SE tax. This is a major planning lever for SE income above ~$60k. Setup costs and complexity make it worthwhile only above ~$80k of net SE income.
Is my data stored?+
No. All math runs in your browser. Your business income never leaves your device.
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