Estimate the self-employment tax you owe on 1099 or freelance income for 2026 — the Social Security and Medicare portions, plus the half you can deduct.
Self-employment tax is how freelancers, contractors, and small-business owners pay into Social Security and Medicare. Employees split these taxes with their employer, but when you're self-employed you pay both halves — a combined 15.3% — on your net earnings. This calculator estimates what you'll owe for the 2026 tax year.
Self-employment tax is 15.3%: 12.4% for Social Security and 2.9% for Medicare. You don't pay it on your full profit — first you multiply net income by 92.35% to get 'net earnings,' which mirrors the employer-side deduction employees get. The 15.3% applies to that adjusted figure.
The 12.4% Social Security portion only applies up to the annual wage base, which rises to $184,500 in 2026. Earnings above that owe only the 2.9% Medicare portion. If you also have a W-2 job, those wages use up part of the wage base first — enter them above so the calculator doesn't double-count.
You can deduct half of your self-employment tax on your income tax return, which lowers your taxable income (it does not reduce the SE tax itself). Because no employer withholds for you, the IRS expects quarterly estimated payments. Set aside roughly 25–30% of profit to cover SE tax plus income tax.
Tip: This estimates self-employment tax only — not your federal or state income tax, which apply on top. A high earner over $200,000 also owes an extra 0.9% Additional Medicare Tax, not included here.