Taxes

Self-Employment Tax Calculator

An employee splits FICA with their employer. Work for yourself and you are both, so you owe the whole 15.3% — on 92.35% of your net profit, with the Social Security half capped and Medicare uncapped.

Formula shown below · Checked against published figures for 2026How we verify

Net profit (after business expenses)

Revenue minus deductible business expenses — not your gross invoices.

Self-employment tax for 2026

$14,130

Owed on top of federal and state income tax.

Set aside each quarter: $3,532
Social Security portion (12.4%): $11,451
Medicare portion (2.9%): $2,678
Taxable base (92.35% of profit): $92,350
Deductible half: $7,065

Social Security$11,45181%

Medicare$2,67819%

Compare scenariosTry three values of one input

Vary

Self-Employment Tax Calculator results for three values of Net profit (after business expenses)
Net profit (after business expenses)
Self-employment tax for 2026	$12,717	$14,130+$1,413	$15,543+$2,826
Set aside each quarter	$3,179	$3,532+$353	$3,886+$706
Social Security portion (12.4%)	$10,306	$11,451+$1,145	$12,597+$2,290
Medicare portion (2.9%)	$2,410	$2,678+$268	$2,946+$536
Taxable base (92.35% of profit)	$83,115	$92,350+$9,235	$101,585+$18,470
Deductible half	$6,358	$7,065+$706	$7,771+$1,413

Every other input stays at the value you set above — currently $100,000 for net profit (after business expenses). Differences are measured against the first column.

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How this calculator works

Taxable base = net profit × 92.35%. Social Security is 12.4% of that base up to the 2026 wage base of $184,500; Medicare is 2.9% with no cap. Half the resulting tax is deductible against income tax.

Rates and the wage base come from our 2026 federal dataset. This covers self-employment tax alone — not income tax, state tax, or the 0.9% Additional Medicare Tax on high earners. W-2 wages you also earn count toward the Social Security cap first, which this single-input version does not model.

Formula

N   = 0.9235 × E
SE  = 0.124 × min(N, W) + 0.029 × N + 0.009 × max(0, N − A)
Ded = SE ÷ 2

E: Net earnings from self-employment, after business expenses
N: The 92.35% of net earnings actually subject to the tax
W: Social Security wage base — earnings above it are exempt from the 12.4%
A: Additional Medicare threshold for your filing status
Ded: The deductible half, taken against income tax

The rates are double an employee's because you pay both halves. Two provisions soften it: only 92.35% of net earnings is taxed, and half the resulting tax is deductible against income tax.

What this assumes

Net earnings after business expenses, not revenue. Legitimate deductions reduce this tax directly.
Only 92.35% of net earnings is subject to the tax, and half of the resulting tax is deductible against income tax.
This is self-employment tax only — income tax is calculated separately and quarterly estimated payments cover both.

What changes this number

Net earnings: Both the base for the tax and the figure business expenses reduce, which is why bookkeeping is worth real money here.
The Social Security wage base: The 12.4% portion stops above it; the Medicare portion never does.
Entity structure: An S-corporation election can change how much of the income is subject to this tax. That is a decision for an accountant, not a calculator.

A worked example

Take the $100k profit scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.

What you enter

Net profit (after business expenses): $100,000

What it returns

Self-employment tax for 2026: $14,130
Set aside each quarter: $3,532
Social Security portion (12.4%): $11,451
Medicare portion (2.9%): $2,678
Taxable base (92.35% of profit): $92,350

Sources

IRS Rev. Proc. 2025-32 (tax year 2026 inflation adjustments)
Published October 2025 · Figures last verified July 2, 2026
SSA 2026 Cost-of-Living Adjustment Fact Sheet (wage base)
Published October 24, 2025 · Figures last verified July 2, 2026

Calculator last reviewed August 8, 2026. How we verify

Try an example

$100k profit Side income of $20k Past the wage base

Frequently asked questions

What is self-employment tax?

It is Social Security and Medicare for people without an employer to split the bill. Employees pay 7.65% and their employer matches it; a freelancer, sole proprietor, or single-member LLC owner pays the full 15.3%. It is separate from, and on top of, income tax.

Why is only 92.35% of my profit taxed?

The law lets you exclude the employer-equivalent share before applying the rate, which works out to multiplying net profit by 0.9235. It is a small mercy that stops you from paying the employer half on money that represents the employer half.

How much should I set aside?

The quarterly figure above covers self-employment tax only. Most freelancers set aside 25–30% of profit in total to also cover federal and state income tax. Estimated payments are generally due in April, June, September, and January — underpaying can trigger penalties.

Does forming an S-corp reduce this?

It can, by splitting your profit into a reasonable salary (subject to payroll taxes) and distributions (not subject to self-employment tax). It also adds payroll filings, accounting costs, and IRS scrutiny of what counts as reasonable. Worth pricing with an accountant once profits are consistently high.

Do I owe this if I already have a salaried job?

Yes on the freelance profit, but your W-2 wages count toward the Social Security wage base first. If your salary alone already exceeds the base, the Social Security portion of your side income drops away and only Medicare applies.

How much self-employment tax do I owe on $100,000 of profit?

About $14,130 for 2026 — roughly $3,532 to set aside each quarter. The taxable base is 92.35% of net earnings ($92,350), split into $11,451 of Social Security and $2,678 of Medicare. Income tax is owed on top of this.

This calculator helps answer

What will I actually take home?

Turn a salary offer into the number that reaches your account, then check what a raise, a contribution change or self-employment does to it.

Take-Home Pay Calculator

See your actual paycheck after federal tax, Social Security, Medicare, 401(k), health premiums, and state tax — per paycheck and per year (2026 figures).

Federal Income Tax Calculator

Estimate your 2026 federal income tax: total tax, effective and marginal rates, and a bracket-by-bracket breakdown using official IRS figures.

Freelance Hourly Rate Calculator

Work backward from the income you want to the hourly rate you must charge — after business expenses, self-employment tax, and the hours you can't bill.

Net to Gross Salary Calculator

Work backward from the take-home pay you want to the gross salary you need, given your effective tax rate. The 'gross-up' calculator for offers and negotiations.

Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.