# Self-Employment Tax Calculator (2026)

Self-employment tax is the Social Security and Medicare tax that business owners pay on their own profit. For 2026 it's 15.3% of net earnings, which are 92.35% of net profit: 12.4% for Social Security up to $184,500, plus 2.9% for Medicare on everything. A contractor with $85,000 of profit owes about $12,010.

## Key takeaways

- Self-employment tax = net profit × 92.35% × 15.3% (Social Security part capped at the $184,500 2026 wage base).
- You generally owe it once net earnings from self-employment reach $400.
- Half of it is deductible from income, which lowers income tax but not the SE tax itself.
- An extra 0.9% Additional Medicare Tax applies above $200,000 ($250,000 married filing jointly).
- It's due through quarterly estimated payments, not once a year.

> **Estimate, not tax advice**
>
> Figures are for tax year 2026 from the IRS. The calculator assumes all of your profit is from self-employment and ignores church employee income, farm optional methods and other special cases on Schedule SE. Check your return with a CPA or enrolled agent.

## How is self-employment tax calculated?

Multiply net profit by 92.35% to get net earnings from self-employment, then apply 12.4% (Social Security) to net earnings up to the $184,500 wage base and 2.9% (Medicare) to all of it. The 92.35% step mirrors the employer half of payroll tax that a W-2 employee never sees on their pay.

**Formula**

```
SE tax = min(N, B − W) × 12.4% + N × 2.9%, where N = profit × 92.35%
```

Where:
- N = net earnings from self-employment (net profit × 92.35%)
- B = Social Security wage base: $184,500 for 2026
- W = W-2 wages already taxed for Social Security this year

1. **Start with net profit.** Use Schedule C line 31 profit (revenue minus business expenses). If you have more than one business, add the profits together.
2. **Multiply by 92.35%.** This gives net earnings from self-employment. If it's under $400, you generally owe no SE tax.
3. **Apply the Social Security rate.** Multiply net earnings, up to $184,500 minus any W-2 wages, by 12.4%.
4. **Apply the Medicare rate.** Multiply all net earnings by 2.9%. There's no cap on this part.
5. **Deduct half.** Add the two parts for your SE tax, then deduct half of it on Schedule 1 when figuring adjusted gross income.

> **Worked example**
>
> A single plumber nets $85,000 in 2026 and has no other job. Net earnings are $85,000 × 92.35% = $78,498.
>
> Social Security: $78,498 × 12.4% = $9,734. Medicare: $78,498 × 2.9% = $2,276.
>
> Self-employment tax: **$12,010**, or 14.1% of profit. Half of it, $6,005, is deducted from income. Saving $1,001 a month covers it.

> **Example with a W-2 job**
>
> An electrician earns $150,000 in W-2 wages and nets $60,000 from side jobs. Only $34,500 of the $184,500 wage base is left, so Social Security tax on the side business is $4,278, not the full 12.4% of $55,410.
>
> Medicare is $1,607. Because wages plus net earnings pass $200,000, Additional Medicare Tax adds $49. Total: $5,934.

## How much self-employment tax will I pay?

**2026 self-employment tax by net profit (single filer, no W-2 wages)**

| Net profit | SE tax | Additional Medicare | Deductible half | Effective rate |
| --- | --- | --- | --- | --- |
| $25,000 | $3,532 | $0 | $1,766 | 14.1% |
| $50,000 | $7,065 | $0 | $3,532 | 14.1% |
| $75,000 | $10,597 | $0 | $5,299 | 14.1% |
| $100,000 | $14,130 | $0 | $7,065 | 14.1% |
| $150,000 | $21,194 | $0 | $10,597 | 14.1% |
| $200,000 | $28,234 | $0 | $14,117 | 14.1% |
| $250,000 | $29,573 | $278 | $14,787 | 11.9% |

_Computed with 2026 IRS figures: 15.3% rate, 92.35% net earnings factor, $184,500 Social Security wage base, 0.9% Additional Medicare Tax above $200,000 for single filers._

The effective rate falls above roughly $199,783 of profit, because the 12.4% Social Security part stops at the wage base. The Medicare part never stops, and the Additional Medicare Tax adds 0.9% on top at higher incomes.

## Self-employment tax vs. income tax

They're two separate taxes on the same profit. Income tax depends on your bracket, deductions and credits. Self-employment tax is a flat payroll-style tax on nearly every dollar of profit, and the standard deduction doesn't reduce it. That's why a contractor in a low income-tax bracket can still owe a large bill. The [quarterly estimated tax calculator](https://www.brix.so/tools/quarterly-estimated-tax-calculator) adds both together.

## How can a contractor lower self-employment tax?

- **Claim every legitimate business expense.** SE tax is figured on profit, so a deductible truck, tool or software expense lowers it. See the [contractor tax deductions list](https://www.brix.so/learn/contractor-tax-deductions-list).
- **Track business miles.** The [mileage deduction](https://www.brix.so/tools/mileage-deduction-calculator) reduces Schedule C profit, which reduces SE tax too.
- **Write off equipment in year one.** A [Section 179](https://www.brix.so/tools/section-179-calculator) deduction on Schedule C reduces SE income in the year you take it.
- **Consider an S corporation once profit is steady.** S corporations must pay a shareholder-employee [reasonable compensation](https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-compensation-and-medical-insurance-issues) (subject to payroll tax) before taking distributions, and distributions aren't subject to SE tax. It adds payroll, a separate return and cost, so run it past a CPA. See [S corp vs. LLC for contractors](https://www.brix.so/learn/s-corp-vs-llc-for-contractors).

## Common mistakes

- **Applying 15.3% to all profit.** The rate applies to 92.35% of profit, and the Social Security part stops at the wage base.
- **Forgetting W-2 wages.** If you or your side job already paid Social Security tax on wages, you have less room under the wage base.
- **Thinking the deductible half lowers SE tax.** It lowers income tax only.
- **Paying it once a year.** SE tax is part of your quarterly estimated payments. Waiting for April can trigger an underpayment penalty.

BRIX keeps every expense categorized and synced with QuickBooks, so the profit number behind your self-employment tax is right, and it reminds you before each estimated tax date. BRIX doesn't file taxes or give tax advice.

- [Bookkeeping and tax help](https://www.brix.so/features/bookkeeping-taxes): Keeps expenses categorized, tracks 1099 subcontractors and sales tax, and reminds you of quarterly estimated tax dates. BRIX does not file taxes or give tax advice.
- [QuickBooks sync](https://www.brix.so/integrations/quickbooks): Syncs customers, invoices and payments with QuickBooks so the books match the jobs.

## Frequently asked questions

### What is the self-employment tax rate for 2026?

15.3%: 12.4% for Social Security on net earnings up to $184,500 and 2.9% for Medicare with no cap. It applies to 92.35% of net profit, so the effective rate on profit is about 14.1% below the wage base.

### Do I have to pay self-employment tax if I made less than $400?

Generally no. You usually owe SE tax only if net earnings from self-employment are $400 or more. You may still need to file a return for other reasons.

### Is self-employment tax deductible?

Half of it is. You deduct one-half of self-employment tax as an adjustment to income, which lowers income tax. It doesn't reduce the self-employment tax itself.

### How much self-employment tax do I pay on $100,000?

About $14,130 for 2026, if you have no W-2 wages: $100,000 × 92.35% × 15.3%. Half of that, $7,065, is deductible from income. Income tax is separate.

### Does an LLC pay self-employment tax?

A single-member LLC is taxed like a sole proprietorship by default, so its owner pays SE tax on the profit. Members of a multi-member LLC taxed as a partnership generally do as well, though some members' situations differ. An LLC that elects S corporation status pays its owner wages instead.

### When is self-employment tax paid?

Through quarterly estimated tax payments during the year, then reconciled on Schedule SE with your Form 1040. Waiting until the return is due can mean an underpayment penalty.

## Related

- [What Is Self-Employment Tax?](https://www.brix.so/learn/self-employment-tax)
- [Quarterly Estimated Tax Calculator for Self-Employed Contractors (2026)](https://www.brix.so/tools/quarterly-estimated-tax-calculator)
- [How Much Should You Set Aside for Taxes When You're Self-Employed?](https://www.brix.so/learn/how-much-to-set-aside-for-taxes)
- [S Corp vs. LLC for Contractors: Which Is Better?](https://www.brix.so/learn/s-corp-vs-llc-for-contractors)
- [What Is a Reasonable Salary for an S Corp Owner?](https://www.brix.so/learn/reasonable-salary-s-corp)
- [Contractor Tax Deductions: The Complete List for 2026](https://www.brix.so/learn/contractor-tax-deductions-list)
- [Mileage Deduction Calculator for Contractors (2026)](https://www.brix.so/tools/mileage-deduction-calculator)
- [Taxes for Contractors: The 2026 Guide for Self-Employed Trades Owners](https://www.brix.so/guides/contractor-taxes)
- [Section 179 Calculator for Trucks, Vans and Equipment (2026)](https://www.brix.so/tools/section-179-calculator)
- [Quarterly Estimated Taxes for Contractors: How They Work in 2026](https://www.brix.so/learn/quarterly-estimated-taxes-for-contractors)

## Sources

- [IRS Topic No. 554, Self-Employment Tax](https://www.irs.gov/taxtopics/tc554) (checked 2026-10-12)
- [IRS Topic No. 751, Social Security and Medicare Withholding Rates](https://www.irs.gov/taxtopics/tc751) (checked 2026-10-12)
- [IRS Form 1040-ES (2026), Estimated Tax for Individuals](https://www.irs.gov/pub/irs-pdf/f1040es.pdf) (checked 2026-10-12)
- [IRS Topic No. 560, Additional Medicare Tax](https://www.irs.gov/taxtopics/tc560) (checked 2026-10-12)
- [IRS, S corporation compensation and medical insurance issues](https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-compensation-and-medical-insurance-issues) (checked 2026-10-12)

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Written by BRIX Editorial Team. Last updated 2026-10-12. General information, not tax, legal or financial advice.
Canonical: https://www.brix.so/tools/self-employment-tax-calculator