Self-employment & estate
A self-employment tax calculator for the freelancers on your list
A self-employment tax calculator for 2026: freelancers and sole proprietors enter net profit and see Social Security, Medicare, the total and the deductible half, using 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of net profit2026 · IRS.
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How is self-employment tax calculated in 2026?
Multiply net profit by 92.35% to get net earnings from self-employment. Apply 12.4% Social Security up to the $184,5002026 · SSA wage base and 2.9% Medicare on all of it. Half of the total is deductible in figuring income tax. No self-employment tax is due when net earnings are under $400 of net SE earnings2026 · IRS.
Before each estimated payment date, starting in April
First-year freelancers discover in April that nobody withheld anything, and that self-employment tax applies before income tax is even considered. Experienced contractors search before each quarterly due date (April, June, September and January) to decide what to send. Both want a reliable number in a few seconds.
What the client types into a search box
“how much should I set aside for taxes as a 1099 contractor”
How a client works through it
Enter net profit
Revenue minus business expenses, the bottom line of Schedule C.
See net SE earnings
The calculator applies the 92.35% factor automatically.
Read the two taxes
Social Security and Medicare portions are shown separately, then totaled.
Send it for estimates
Clients can send the result to your firm to set up quarterly payments.
What lands in your inbox
When a client asks your firm to review the result, the request arrives as a contact record with their inputs and results attached, by email and, on paid plans, by webhook to your CRM.
Received
Net profit alone tells you a lot. Profits near or above the wage base suggest a client for whom an S corporation analysis or a solo 401(k) could matter. Small profits from a side business suggest a first-time Schedule C filer who needs guidance on deductions and records.
What does the deductible half do?
Self-Employment Tax is the total of the Social Security Portion and the Medicare Portion. Net SE Earnings is the base it's figured on. Deductible Half is subtracted as an adjustment to income on the 1040, which reduces income tax but not self-employment tax itself.
The figure is not the client's whole tax bill. Income tax comes on top, which is the point to make when the client asks how much to set aside each quarter.
Results shown: Self-Employment Tax · Social Security Portion · Medicare Portion · Net SE Earnings · Deductible Half.
$80,000 of profit
Net profit of $80,000 × 92.35% = $73,880 of net earnings. Social Security: $73,880 × 12.4% = $9,161.12. Medicare: $73,880 × 2.9% = $2,142.52. Total self-employment tax: $11,303.64, of which $5,651.82 is deductible when figuring income tax.
Why is this one of the best lead tools for EAs and CPAs?
Self-employed clients need a preparer more than almost anyone: Schedule C, Schedule SE, estimated payments, home office, retirement plans, and eventually the S corporation question. A contractor who just saw their self-employment tax estimate is ready to talk about all of it.
The request includes net profit, which is the single best indicator of the engagement: at modest profits, the conversation is about estimates and bookkeeping; at higher profits, entity choice and a solo 401(k).
Follow-ups this request opens
- Set up quarterly estimated payments covering income and self-employment tax
- Analyze whether an S corporation election would save tax
- Open and fund a solo 401(k) or SEP IRA
- Set up bookkeeping so net profit is accurate
What this calculator leaves out
- Excludes the 0.9% Additional Medicare Tax for higher earners.
- Does not include income tax or the qualified business income deduction.
- Assumes no W-2 wages; wages count toward the Social Security wage base first.
- Church employee income and optional methods are not modeled.
Platform disclaimer shown under the calculator: Estimates only. Applies 15.3% (12.4% Social Security up to the wage base + 2.9% Medicare) to 92.35% of net profit using the 2026 Social Security wage base ($184,500); no SE tax is due if net SE earnings are under $400. It excludes the additional 0.9% Medicare surtax and any QBI deduction. Consult a tax professional.
Compliance note for firms
Setting a client's estimated payments, or recommending an S corporation election, is written tax advice under Circular 230 §10.37 and depends on facts the calculator does not have, including other income, W-2 wages and state tax. Use the estimate to start the conversation, not to set the payment.
Not legal advice. See our disclaimer and the guide to compliance for client calculators.
2026 figures this page relies on
| Figure | Value | Tax year | Source |
|---|---|---|---|
| Self-employment tax rate and base | 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of net profit | 2026 | IRS |
| Social Security wage base (taxable maximum) | $184,500 | 2026 | SSA |
| Self-employment tax filing threshold | $400 of net SE earnings | 2026 | IRS |
The same values drive the calculator. Full list on the 2026 figures page.
Terms your client sees in the calculator
These definitions appear in the calculator's collapsible Definitions block, so clients don't have to call to ask what a label means.
- Self-employment tax
- The Social Security and Medicare tax paid by self-employed people under SECA, covering both the employee and employer shares. This calculator applies 15.3% (12.4% Social Security plus 2.9% Medicare) to net self-employment earnings (IRS, 2026). It is separate from, and in addition to, federal income tax on the same profit.
- Net self-employment earnings
- The base the tax is figured on: 92.35% of net profit (IRS, 2026). The reduction mirrors the fact that employees do not pay tax on their employer’s half of payroll tax. On $80,000 of profit, net earnings are $73,880. No self-employment tax is due if net earnings are under $400 (IRS, 2026).
- Social Security portion
- The 12.4% share of self-employment tax that funds Social Security, applied only to net earnings up to the wage base (IRS, 2026). Earnings above the base owe no further Social Security tax for the year. Wages from a job count toward the same base, which this calculator does not model.
- Social Security wage base
- The maximum amount of earnings subject to Social Security tax in a year: $184,500 for 2026 (SSA, 2026). It is adjusted annually for wage growth. Once combined wages and net self-employment earnings reach it, only the Medicare portion continues to apply to further earnings.
- Medicare portion
- The 2.9% share of self-employment tax that funds Medicare (IRS, 2026). Unlike the Social Security portion, it has no wage cap and applies to all net self-employment earnings. Higher earners may also owe an additional 0.9% Medicare surtax, which this calculator excludes.
- Deductible half
- Half of your self-employment tax, which you can deduct from gross income on your federal income tax return. It does not reduce the self-employment tax itself, only the income tax, and it is taken whether or not you itemize. It reflects the employer-equivalent share of the tax.
In our glossary: Self-employment tax · Social Security wage base · FICA
Self-Employment Tax calculator: questions from firms and clients
What is the self-employment tax rate for 2026?
15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of net profit2026 · IRS, with Social Security applying only up to the $184,5002026 · SSA wage base.
When is no self-employment tax due?
When net earnings from self-employment are under $400 of net SE earnings2026 · IRS.
Is self-employment tax the same as income tax?
No. It is the self-employed version of Social Security and Medicare tax and is owed in addition to income tax.
Why is only 92.35% of profit taxed?
It mirrors the employer's share of FICA, which an employee never pays tax on. The 92.35% factor gives the self-employed the equivalent adjustment.
What if the client also has a W-2 job?
W-2 wages count toward the Social Security wage base first, so a high earner may owe less Social Security on self-employment income. The calculator assumes no wages, so the firm should adjust.
Does it calculate quarterly payments?
No. It shows the annual self-employment tax. Quarterly estimates also need income tax, which is why clients send the result to a preparer.
Would an S corporation reduce this tax?
Possibly, by paying part of the profit as wages and part as distributions, but it adds payroll and compliance costs. That analysis is a common follow-up engagement.
Which plan includes it?
Network, with the other tax calculators. See pricing.
No question matches that filter. Clear it to see them all, search the whole site, or ask us directly; we reply within one business day.
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