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.
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
Roughly, for estimated payments.
Reduces your income tax, not this bill.
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.
Try an example
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.
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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.