Self-Employment Tax Calculator 2026
Calculate SE tax (15.3%), income tax, quarterly estimated payments for freelancers and contractors.
Freelancers and self-employed individuals pay 15.3% self-employment tax (12.4% Social Security + 2.9% Medicare) on net self-employment income, but can deduct half of this tax (7.65%) from gross income. On $80,000 net SE income, SE tax is approximately $11,304 — equivalent to the employee + employer FICA shares combined.
Self-Employment Tax
$11,303.64
Federal Income Tax
$7,970.60
Total Tax Owed
$19,274.24
Quarterly Estimated Payment
$4,818.56
Effective Total Rate
24.09%
2026 Social Security wage base: $176,100. SE tax = 12.4% SS + 2.9% Medicare. Deduct 50% of SE tax from income.
2026 Social Security wage base: $176,100. SE tax = 12.4% SS + 2.9% Medicare. Deduct 50% of SE tax from income.
About This Calculator
When you're self-employed, you pay both halves of FICA: the employee's 7.65% and the employer's 7.65%, totaling 15.3% self-employment tax on net earnings. However, you can deduct half (7.65%) as an above-the-line deduction, which reduces your federal income tax base.
The calculation chain: Net SE income × 0.9235 (to apply SE deduction) × 15.3% = SE tax. Then deduct half of SE tax from gross income, subtract standard deduction, apply federal income tax brackets to the result.
If you expect to owe more than $1,000 in total taxes for the year, you must make quarterly estimated tax payments (April 15, June 15, September 15, January 15). Failure to pay quarterly results in underpayment penalties.
Self-employed individuals have access to powerful retirement accounts: Solo 401(k) allows contributions up to $69,000/year (employee + employer portions); SEP-IRA allows up to 25% of net self-employment income.
How to Use
- 1Enter your net self-employment income (revenue minus business expenses).
- 2Enter your filing status and any other W-2 income from a regular job.
- 3Review your self-employment tax (15.3% on 92.35% of net income) and the deductible half.
- 4See your federal income tax after the SE deduction.
- 5Note your quarterly estimated payment amount to avoid underpayment penalties.
Formula & Methodology
SE Tax = Net SE Income × 0.9235 × 0.153. Deductible SE = SE Tax ÷ 2. Federal Taxable Income = Gross Income − Deductible SE − Standard Deduction. Federal Tax = progressive brackets applied to taxable income. Total Tax = SE Tax + Federal Tax.
Frequently Asked Questions
What is self-employment tax and who pays it?
Self-employment tax (SE tax) is the 15.3% tax covering Social Security (12.4%) and Medicare (2.9%) that self-employed individuals pay in lieu of FICA. It applies to net self-employment income above $400/year. W-2 employees split this with their employer (7.65% each); self-employed pay both halves.
How much should I set aside for self-employment taxes?
A common rule of thumb is to set aside 25–30% of net income for taxes (SE tax + federal income tax). On $80,000 net income, that's $20,000–$24,000 per year, or $5,000–$6,000 quarterly. The exact amount depends on your filing status, deductions, and state income tax.
What are quarterly estimated tax due dates?
For 2026: Q1 (Jan 1–Mar 31) due April 15 · Q2 (Apr 1–May 31) due June 16 · Q3 (Jun 1–Aug 31) due September 15 · Q4 (Sep 1–Dec 31) due January 15, 2027. Pay via IRS Direct Pay or EFTPS. Underpayment penalty applies if you owe more than $1,000 and didn't pay 90% of current-year tax or 100% of prior-year tax.
Can I reduce self-employment tax with a Solo 401(k)?
A Solo 401(k) reduces your federal income tax (contributions are pre-tax) but not SE tax directly. SE tax is calculated on net SE income before retirement contributions. However, a SEP-IRA or Solo 401(k) is highly effective at reducing your federal income tax bracket, which can save $5,000–$15,000/year for high-earning freelancers.
Sources & References
- IRS — Self-Employment Tax (Schedule SE)
- IRS — Estimated Tax Payments
- IRS — Self-Employed Individuals Tax Center
Last updated: 2026-04-12