Freelancers pay both halves of Social Security and Medicare. Here's how to work out exactly what you owe for 2026.
When you work for an employer, you split Social Security and Medicare taxes with them. When you're self-employed, you pay both halves — a combined 15.3% (12.4% Social Security + 2.9% Medicare). This is separate from, and on top of, your income tax.
You don't pay the 15.3% on your full profit. First multiply your net self-employment income by 92.35% to get your "net earnings" — this mirrors the employer-side deduction employees get. Then apply 15.3% to that figure (Social Security up to the annual wage base, Medicare on all of it).
Suppose your net self-employment income is $80,000. Net earnings = 80,000 × 0.9235 = $73,880. Social Security portion = 73,880 × 12.4% = $9,161. Medicare portion = 73,880 × 2.9% = $2,143. Total self-employment tax ≈ $11,304, of which about $5,652 is deductible. The self-employment tax calculator does this instantly.
The 12.4% Social Security portion only applies to net earnings up to the annual wage base, which is $184,500 for 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, so they aren't taxed twice.
You can deduct one-half of your self-employment tax on your income tax return, which lowers your taxable income (not the SE tax itself). Because no employer withholds for you, the IRS expects quarterly estimated payments in April, June, September, and January. A good habit is to set aside 25–30% of profit. Pricing your work? Our freelance rate calculator helps you build taxes into your rate.