What tax year does this calculator use?

This calculator uses tax year 2026 values throughout. That includes the $184,500 Social Security wage base confirmed by the Social Security Administration, the standard deductions published in Rev. Proc. 2025-32 ($16,100 single, $32,200 married filing jointly, $24,150 head of household), and the Additional Medicare Tax thresholds unchanged at $200,000 / $250,000 / $125,000. Results are estimates for planning during the 2026 calendar year. The 2026 Schedule SE form is used when filing returns in 2027.

Is this tax or financial advice?

No. This calculator produces estimates for planning purposes only. Tax situations vary; the figures here do not account for every circumstance that might affect actual SE tax liability. Consult a licensed CPA, enrolled agent, or tax attorney for advice specific to your situation. The IRS also offers Free File and the Interactive Tax Assistant at IRS.gov.

Why might this calculator's result differ from TurboTax or the IRS estimator?

Several factors can cause a difference. This calculator takes a single net Schedule C profit figure as its input. Tax software may adjust that number before applying the SE calculation, for instance, by accounting for self-employed health insurance deductions that reduce net earnings per Schedule SE instructions, or by handling multiple Schedule C businesses. The IRS Tax Withholding Estimator is designed for W-2 withholding, not SE tax. Small rounding differences in intermediate steps (the 0.9235 factor, for example) can also produce minor variances. If numbers diverge significantly, check whether deductions that affect net SE earnings are being treated differently.

How often is this calculator updated?

The calculator is reviewed at the start of each tax year once the IRS and SSA publish updated inflation adjustments, typically in October of the preceding year. The 2026 Social Security wage base was published by the SSA in October 2025; the 2026 standard deductions and other inflation adjustments were published by the IRS in Rev. Proc. 2025-32 also in October 2025. This page was last updated June 1, 2026.

Can this calculator handle my state taxes?

No. Self-employment taxes under SECA are federal taxes, and this calculator covers only the federal SE tax computed on Schedule SE (Form 1040). Several states impose their own income taxes on self-employment earnings, and some states have their own estimated-payment requirements. State tax calculations are not included here.

Do I still owe SE tax if I already maxed out Social Security at a W-2 job?

The Social Security portion of SE tax, 12.4%, is not owed if W-2 wages have already reached the $184,500 wage base. W-2 Social Security wages fill the cap first; once wages hit $184,500, no additional SS tax is due on self-employment net earnings. The 2.9% Medicare portion, however, is always owed on net SE earnings regardless of W-2 wages, because Medicare has no wage base cap. Enter W-2 wages in the appropriate field to have the calculator apply this coordination rule.

Does the half-SE-tax deduction lower the SE tax I owe?

No. The deduction, equal to 50% of total SE tax, claimed on Schedule 1, Line 15, reduces adjusted gross income and therefore lowers income tax. The SE tax itself is computed first on Schedule SE, and the deduction is calculated as a percentage of that result. The deduction does not feed back into the SE tax calculation. Think of it as a separate benefit: the IRS allows sole proprietors to deduct the "employer half" of SE tax the same way an actual employer deducts payroll taxes as a business expense.

Is SE tax the same as the quarterly estimated tax I pay?

No, though the two are closely related. SE tax is a specific tax, the SECA tax computed on Schedule SE, that funds Social Security and Medicare. Quarterly estimated taxes are a payment mechanism, not a separate tax. Because self-employed individuals have no employer withholding, they are generally required to pay estimated taxes quarterly using Form 1040-ES, and those payments must cover both SE tax and income tax. SE tax is one component of the total amount that quarterly payments need to cover.

Do I owe SE tax on a business loss?

No. SE tax is computed on net earnings from self-employment, and a Schedule C net loss produces zero net earnings. No SE tax is owed on a loss year. A loss from one business may reduce net earnings from another if both appear on Schedule SE; Schedule SE instructions specify that all self-employment businesses are combined on a single Schedule SE. One planning note: low-profit or loss years may leave gaps in Social Security credits. The optional method on Schedule SE Part II is specifically designed to address this, see Edge Case 5 above.

Does forming an LLC reduce my SE tax?

A single-member LLC (SMLLC) that has not elected S-corporation or C-corporation tax treatment is disregarded for federal tax purposes. The owner still reports profit on Schedule C and owes SE tax on net earnings just as a sole proprietor would. LLC formation alone, without an S-election and payroll structure, does not reduce SE tax. Electing S-corporation treatment and drawing a reasonable W-2 salary can shift a portion of profit to distributions not subject to SE tax, but that involves payroll obligations and additional compliance costs; that is a question for a tax professional.

How does the 0.9% Additional Medicare Tax work for self-employed people?

The 0.9% Additional Medicare Tax applies to net earnings from self-employment above the filing-status thresholds: $200,000 for single filers, $250,000 for married filing jointly, and $125,000 for married filing separately. It has no employer match, unlike the 2.9% base Medicare rate, which splits the equivalent rate between employer and employee on a payroll, the 0.9% falls entirely on the taxpayer. It is computed on Form 8959 and flows to Schedule 2. If a filer has both W-2 wages and SE income, the W-2 wages reduce the threshold for the SE income portion, meaning W-2 wages are applied first, and the SE income is tested against whatever threshold remains.

Why does the 92.35% factor exist, why not just apply 15.3% to net profit directly?

The 0.9235 factor (100% minus 7.65%) exists because a self-employed person pays both the employer and employee halves of FICA. An employee earning $100,000 in wages pays 7.65% on those wages (6.2% SS + 1.45% Medicare), but the employer also pays a matching 7.65%, and the employer's share is never included in the employee's taxable wages. To put a sole proprietor on equal footing, the IRS adjusts net earnings downward by the employer-equivalent 7.65% before applying the rate. Multiplying by 0.9235 (which equals 1 - 0.0765) approximates that adjustment. The result is that a sole proprietor pays SE tax on roughly the same base a comparable employee would report as wages.

Self-Employment Tax Calculator for US Freelancers (2026 Tax Year)

Use this free self-employment tax calculator to estimate the Social Security and Medicare taxes you owe on your 1099 / Schedule SE income for 2026. The self-employment tax rate is 15.3% — split into 12.4% for Social Security (on earnings up to the $184,500 wage base) and 2.9% for Medicare (uncapped). Whether you're a freelancer, independent contractor, or sole proprietor, this freelancer tax calculator gives you a live breakdown plus set-aside and quarterly payment amounts — no signup required. Enter your net income below to get started.

All 5 filing statusesSS wage-base awareQuarterly & monthly set-asideUpdated for 2026

Your numbers

Live calculation — no button to press.

Net self-employment income

Gross freelance revenue minus business expenses (Schedule C line 31).

Filing status

Only affects the additional 0.9% Medicare surtax threshold.

Your self-employment tax

Updates live as you type.

Tax year 2026

Total self-employment tax

—

Enter your net self-employment income to see your estimate.

Taxable SE earnings (92.35% of net income)—

Social Security portion (12.4%)—

Medicare portion (2.9%)—

Effective SE tax rate (on net income)—

What to do with this number

Set aside monthly—

Move this from your freelance account to a tax savings account every month.

Pay each quarter (estimated SE portion)—

This is your SE-tax share of quarterly estimated payments (Form 1040-ES). Your total quarterly payment will also include federal income tax.

Deduct at tax time—

You can deduct half of your SE tax as an adjustment to income on Form 1040 Schedule 1. We already excluded this from the number above — it's a bonus at filing.

Record this income on a client invoice → Free Invoice Generator

Get the full breakdown, monthly savings schedule, and quarterly payment calendar — no signup required.

These results are estimates. Verify with a tax professional before making financial decisions. Updated for the 2026 tax year. How is this calculated?

Download the 2026 Freelancer Tax Checklist

Free PDF with all 2026 quarterly due dates, deduction categories, and the Schedule C → Schedule SE filing flow. Plus occasional freelance tax tips by email.

Want the full picture?

Read our Complete Self-Employment Tax Guide (2025–2026) → for rates, deductions, quarterly deadlines, and common mistakes. For quarterly payment steps, see How to Pay Quarterly Estimated Taxes; for Schedule C write-offs, see Every Freelancer Tax Deduction for 2026.

What this calculator does

Calculating self-employment tax starts with a net profit figure from Schedule C and runs it through a two-step adjustment before any rate is applied: the profit is first multiplied by 0.9235 to produce "net earnings from self-employment," and the 15.3% combined rate then applies to that adjusted number, with the Social Security portion capped at the annual wage base and the Medicare portion applying without limit. This calculator automates that sequence for tax year 2026, applying the $184,500 Social Security wage base confirmed by the Social Security Administration, the 0.9% Additional Medicare Tax threshold of $200,000 for single filers, and the above-the-line deduction equal to half of the resulting SE tax. Enter a net Schedule C profit and, if applicable, W-2 Social Security wages already earned in 2026; the calculator returns the estimated SE tax owed and the deductible amount that reduces adjusted gross income.

SE tax is only one layer. Once you have the Schedule SE number, use the quarterly estimated tax guide to split your annual liability across the four IRS due dates.

How the calculation works

Self-employment tax is computed on Schedule SE (Form 1040). The process has four steps.

Net earnings adjustment
Multiply net Schedule C profit by 0.9235. The resulting figure is "net earnings from self-employment." For example, a $100,000 profit produces $92,350 in net earnings.
Apply the 15.3% rate (in two parts)
The Social Security portion is 12.4%, applied to net earnings up to the 2026 wage base of $184,500. The Medicare portion is 2.9%, applied to all net earnings with no cap. Both figures are added to produce total SE tax.
Additional Medicare Tax (if applicable)
If net earnings from self-employment, combined with any W-2 wages, exceed $200,000 for single filers ($250,000 married filing jointly; $125,000 married filing separately), an additional 0.9% applies to the excess. This is computed on Form 8959.
Half-SE-tax deduction
Multiply total SE tax by 50%. This amount is deducted on Schedule 1 (Form 1040), Line 15. It reduces adjusted gross income and therefore income tax. It does not reduce SE tax itself.

Numbers used and why

The 0.9235 factor approximates the share of income that an employee would report as wages, it represents 100% minus the 7.65% employer-side FICA contribution (6.2% Social Security + 1.45% Medicare) that an employer would pay on a standard payroll. Because sole proprietors pay both halves of FICA through SE tax, the IRS adjusts downward by 7.65% before applying the rate, so self-employed filers are not taxed on the employer-equivalent portion.

The 2026 Social Security wage base of $184,500 is published annually by the Social Security Administration under the automatic adjustment provisions of the Social Security Act. It rises most years in line with the national average wage index. The Additional Medicare Tax thresholds ($200,000 / $250,000 / $125,000) are set by statute and are not adjusted for inflation.

The half-SE-tax deduction exists because a comparable benefit applies implicitly to employees: employers deduct their 7.65% FICA match as a business expense, reducing the business's taxable income. The above-the-line deduction gives sole proprietors an equivalent offset. Per IRS guidance, this deduction affects income tax only, it has no effect on the SE tax calculation or on the net earnings figure used to compute SE tax.

What this calculator does not include

Federal income tax. SE tax is separate from income tax. The calculator does not apply tax brackets, the standard deduction, or any income tax credits.
State income or self-employment taxes. Several states impose their own taxes on self-employment income; those vary by state and are outside this tool's scope.
Qualified Business Income (QBI) deduction. The Section 199A deduction is a separate calculation under a different code section; it reduces income tax, not SE tax.
Payroll taxes for employees. If the business has W-2 employees, those taxes are filed separately on Form 941 and are not included here.
S-corporation owner compensation. S-corp owners pay FICA only on reasonable W-2 compensation drawn from the corporation; distributions are not subject to SE tax. That structure is outside the scope of Schedule SE.
Partnership SE income. General partners report SE income from Schedule K-1; the specifics of guaranteed payments and distributive shares add complexity not captured in a single Schedule C input.
Tax on prior-year SE income or net operating loss carryforwards. This calculator applies only to the current-year input entered.

These calculations are estimates for educational and planning purposes only, not tax, legal, or financial advice. Tax rules change, edge cases exist, and your specific situation may include factors this calculator does not model. Always confirm figures against the current IRS guidance and your own records before filing or making a financial decision, and consult a qualified tax professional, CPA, or enrolled agent for advice tailored to your circumstances.

Worked example

Scenario: Maya is a freelance UX designer based in Asheville, North Carolina. For 2026 she has net Schedule C profit of $92,400, no W-2 wages, no other household income, and files single.

Net earnings adjustment
$92,400 x 0.9235 = $85,331.40 in net earnings from self-employment
Social Security portion
$85,331.40 is well below the $184,500 wage base, so the full amount is subject to the 12.4% Social Security tax: $85,331.40 x 0.124 = $10,581.09
Medicare portion
Medicare applies to all net earnings at 2.9%, with no cap: $85,331.40 x 0.029 = $2,474.61
Total SE tax
$10,581.09 + $2,474.61 = $13,055.70. Cross-check: $85,331.40 x 0.153 = $13,055.70.
Additional Medicare Tax
Maya's net earnings ($85,331.40) fall well below the $200,000 single-filer threshold, so no Additional Medicare Tax applies.
Half-SE-tax deduction
$13,055.70 x 0.50 = $6,527.85. Maya deducts $6,527.85 on Schedule 1, Line 15, reducing her adjusted gross income by that amount. This deduction reduces the income tax she owes; it does not reduce the $13,055.70 SE tax itself.

Result summary

Net Schedule C profit: $92,400
Net earnings from SE (× 0.9235): $85,331
Social Security portion (12.4%): $10,581
Medicare portion (2.9%): $2,475
Half-SE-tax deduction: $6,528
Total SE tax: $13,056

Maya's effective SE tax rate on her gross Schedule C profit is approximately 14.13% ($13,055.70 / $92,400), lower than the 15.3% rate because only 92.35% of profit is subject to the tax.

Edge cases and gotchas

Freelancer who also has a W-2 job near or above the Social Security wage base

Situation.: A UX designer earns $92,400 in freelance net profit and also has $140,000 in W-2 wages from a part-time salaried role.
What changes.: W-2 Social Security wages fill the $184,500 wage base first. Because $140,000 in W-2 wages has already been credited against the $184,500 cap, only $44,500 of net earnings from self-employment ($184,500 - $140,000) remains subject to the 12.4% Social Security portion of SE tax. The 2.9% Medicare portion still applies to the full SE net earnings, Medicare has no cap and the W-2 wages do not reduce it.
What to do.: Enter W-2 Social Security wages in the calculator's W-2 wages field. The calculator reduces the SS-taxable base accordingly per the Schedule SE Part I coordination rules. Confirm actual numbers on Schedule SE when filing.

High earner above the $200,000 Additional Medicare Tax threshold

Situation.: A freelance consultant has $240,000 in net Schedule C profit, files single, and has no W-2 wages.
What changes.: Net earnings = $240,000 x 0.9235 = $221,640. The 15.3% rate applies to net earnings up to $184,500 for the SS portion; the 2.9% Medicare rate applies to all $221,640. On top of that, $21,640 ($221,640 - $200,000) is subject to the additional 0.9% tax, computed separately on Form 8959. The 0.9% has no employer match, it falls entirely on the taxpayer.
What to do.: Be aware that the Additional Medicare Tax thresholds are not inflation-indexed, so more filers cross them each year. If self-employment income is combined with W-2 wages, the threshold is reduced by the W-2 wages before the SE income is evaluated, Topic No. 560 describes the ordering rules. Withholding from a W-2 job does not automatically cover this tax; estimated payments may be needed.

Net profit under $400

Situation.: A graphic designer reports $320 in net Schedule C profit for the year, a slow year after business expenses.
What changes.: SE tax does not apply. The $400 threshold in Schedule SE is the floor for owing SE tax on nonfarm self-employment income. Filing Schedule SE is not required, and no SE tax is owed. The $320 is still reported as income for income tax purposes.
What to do.: No SE tax entry is needed. Note that the $400 threshold applies to net profit after allowable Schedule C business deductions, not gross receipts.

Joint filer where only one spouse is self-employed

Situation.: One spouse runs a freelance business with $92,400 in net Schedule C profit; the other spouse has a W-2 job and no self-employment income.
What changes.: SE tax is personal, each spouse's self-employment income is assessed separately. The self-employed spouse files a separate Schedule SE and owes SE tax on their net earnings; the W-2 spouse does not file a Schedule SE. For the Additional Medicare Tax, however, the MFJ threshold is $250,000 combined, so the combined household income governs whether the 0.9% applies, not each spouse's income in isolation. If the W-2 spouse's wages and the freelance spouse's net earnings together exceed $250,000, the excess is subject to the 0.9% AMT.
What to do.: Run SE tax calculations for the self-employed spouse only. Evaluate the AMT separately using combined household income against the $250,000 MFJ threshold.

Freelancer with a business loss (negative Schedule C)

Situation.: A web developer deducted $18,000 in equipment and software in year one and had $14,000 in gross income, producing a Schedule C net loss of ($4,000).
What changes.: A business loss produces zero SE tax. SE tax is computed on net earnings from self-employment, and a net loss results in $0 net earnings. No Schedule SE is required, and no SE tax is owed. The loss may offset other income for income tax purposes under the passive activity and at-risk rules.
What to do.: Do not enter a negative number in the SE tax calculator, the result is $0 SE tax owed. However, filers with recurring low-profit or loss years may consider the Schedule SE nonfarm optional method: it allows an election to compute a higher net earnings figure (up to $7,240 of net earnings can be reported on two-thirds of gross income), which can preserve Social Security credit quarters even when net profit is low. This intentionally increases SE tax to maintain Social Security coverage. See Schedule SE Instructions, Part II, Optional Methods.

Common questions

Sources and references

All tax constants, formulas, and factual claims in this calculator are sourced from U.S. government primary sources. Content is updated annually to reflect the current year's IRS Revenue Procedure and SSA wage base announcements.

Topic No. 554, Self-Employment TaxFiling threshold ($400 / $108.28), combined 15.3% rate, 92.35% factor, Additional Medicare Tax thresholds
Self-Employment Tax (Social Security and Medicare Taxes)SE rate components (12.4% + 2.9%), half-SE-tax deduction description, who must pay
Contribution and Benefit Base (SSA Office of the Chief Actuary)2026 Social Security taxable maximum ($184,500); 12.4% / 2.9% self-employed rates
2025 Instructions for Schedule SE (Form 1040)92.35% net-earnings adjustment, half-SE-tax deduction line, $108.28 threshold, optional methods, W-2 wage base coordination
Topic No. 560, Additional Medicare Tax0.9% AMT rate, thresholds ($200k / $250k / $125k), no employer match, W-2 interaction
About Form 8959, Additional Medicare TaxConfirms AMT is computed on Form 8959; no employer match on the 0.9%
IRS Releases Tax Inflation Adjustments for Tax Year 2026 (Rev. Proc. 2025-32)2026 standard deductions ($16,100 / $32,200 / $24,150)
About Schedule SE (Form 1040), Self-Employment TaxConfirms Schedule SE figures SE tax and feeds SSA benefit calculations

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FreelanceMath provides general financial information for educational purposes only. This is not professional tax, legal, or financial advice. Always verify with a qualified accountant or tax advisor.

Last updated June 1, 2026 · See our Methodology

Your numbers

Your self-employment tax

What to do with this number

Download the 2026 Freelancer Tax Checklist

Want the full picture?

What this calculator does

How the calculation works

Numbers used and why

What this calculator does not include

Worked example

Edge cases and gotchas

Freelancer who also has a W-2 job near or above the Social Security wage base

High earner above the $200,000 Additional Medicare Tax threshold

Net profit under $400

Joint filer where only one spouse is self-employed

Freelancer with a business loss (negative Schedule C)

Common questions

What tax year does this calculator use?

Is this tax or financial advice?

Why might this calculator's result differ from TurboTax or the IRS estimator?

How often is this calculator updated?

Can this calculator handle my state taxes?

Do I still owe SE tax if I already maxed out Social Security at a W-2 job?

Does the half-SE-tax deduction lower the SE tax I owe?

Is SE tax the same as the quarterly estimated tax I pay?

Do I owe SE tax on a business loss?

Does forming an LLC reduce my SE tax?

How does the 0.9% Additional Medicare Tax work for self-employed people?

Why does the 92.35% factor exist, why not just apply 15.3% to net profit directly?

Sources and references

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Quarterly Tax Estimator

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