Self-Employment Tax: Rates and Calculator

Self-Employment Tax: 2026 Rates and Calculator

Self-employment tax is a mix of Social Security and Medicare taxes. Use our calculator to estimate what you owe.

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Reviewed by other Updated Mar 24, 2026 What is the self-employment tax? Who has to pay self-employment tax? Self-employment tax rate How to calculate self-employment tax Self-employment tax calculator How to pay self-employment tax Tax deductions for self-employment Best Financial Advisors Find a Financial Advisor Near You | NerdWallet How to Choose a Financial Advisor in 5 Steps 5 Best Wealth Management Services Nerdy takeaways You may need to pay self-employment tax if you’re a freelancer, an independent contractor or a small-business owner. Here’s what self-employment tax is, how it works and how you can save.

What is the self-employment tax?

The self-employment tax rate is 15.3%. It applies to net earnings — what many call profit. You may need to pay self-employment taxes throughout the year. There's one big difference between self-employment tax and the payroll taxes people with employers pay: Typically, employees and their employers split the bill on Social Security tax and Medicare tax (i.e., you pay 7.65%, and your employer pays 7.65%), but self-employed people pay both halves by themselves.

Who has to pay self-employment tax?

In general, you have to pay self-employment tax if you had $400 or more in net earnings from self-employment (excluding anything you made as a church employee). You may be self-employed in the eyes of the IRS if you received a 1099 form from an entity you did work for. You may also have to pay self-employment tax if you made $108.28 or more in income from church employment. The tax rules apply no matter how old you are and even if you’re receiving Social Security or are on Medicare . » MORE: How to find a CPA near you » MORE: » MORE:

Self-employment tax rate

The self-employment tax rate is 15.3%, which is a combination of a 12.4% Social Security tax and a 2.9% Medicare tax on net earnings. Self-employment tax is not the same as income tax. In 2026, the first $184,500 of earnings is subject to Social Security tax. A 0.9% additional Medicare tax may also apply if your net earnings from self-employment exceed $200,000 if you’re a single filer or $250,000 if you’re filing jointly. In 2026, the first $184,500 of earnings is subject to Social Security tax. In 2026, the first $184,500 of earnings is subject to Social Security tax.

How to calculate self-employment tax

Calculating your tax starts by calculating your net earnings from self-employment for the year. For tax purposes, net earnings are usually your gross income from self-employment minus your business expenses. Generally, 92.35% of your net earnings from self-employment are subject to self-employment tax. Once you’ve determined how much of your net earnings from self-employment are subject to tax, apply the 15.3% tax rate. Remember the cap on Social Security tax. In 2026, the first $184,500 of earnings is subject to Social Security tax. In 2026, the first $184,500 of earnings is subject to Social Security tax. In 2026, the first $184,500 of earnings is subject to Social Security tax. If you had a loss or just a little bit of income from self-employment, be sure to check out the two optional methods in IRS Schedule SE to calculate your net earnings.

Self-employment tax calculator

Fill in the fields below to estimate your potential self-employment tax.

How to pay self-employment tax

Generally, you use IRS Schedule C to calculate your net earnings from self-employment, and you use IRS Schedule SE to calculate how much self-employment tax you owe. You’ll also need to provide your Social Security number or individual taxpayer identification number (ITIN) when you pay the tax. Since taxes are a pay-as-you-go deal in the United States, waiting until the annual tax filing deadline to pay your self-employment tax may mean incurring late-payment penalties. Instead, you may need to make quarterly estimated tax payments throughout the year if you expect: You’ll owe at least $1,000 in federal income taxes this year, even after accounting for your withholding and refundable credits (such as the earned income tax credit), and Your withholding and refundable credits will cover less than 90% of your tax liability for this year or 100% of your liability last year, whichever is smaller. (The threshold is 110% of tax owed last year if your adjusted gross income was more than $150,000 for married couples filing jointly or $75,000 for singles.) AD Owe $10,000+ or More? This Tax Season Could Be Your Chance to Qualify Each year the IRS writes off millions in tax debt, yet few have applied. Learn more Learn more

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Tax deductions for self-employment

You can deduct half of your self-employment tax on your income taxes. So, for example, if your Schedule SE says you owe $2,000 in self-employment tax for the year, you'll need to pay that money when it's due during the year, but at tax time, $1,000 would be deductible on your 1040. Self-employment can score you a bunch of sweet tax deductions, too. One is the qualified business income deduction, which lets you take an income tax deduction for a portion of your self-employment net income. Plus, there are other deductions available for your home office, health insurance and more. Here’s a primer on self-employment deductions. Explore more on Article sources NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines. IRS.gov. Self-Employment Tax (Social Security and Medicare taxes). Accessed Oct 10, 2025. About the author Orem Tina Orem is an editor and content strategist at NerdWallet. Prior to becoming an editor and content strategist, she covered small business and taxes at NerdWallet. She has a degree in finance, as well as a master's degree in journalism and an MBA. Previously, she was a financial analyst and director of finance at public and private companies. Tina's work has appeared in a variety of local and national media outlets. Published in How Much Does a Financial Advisor Cost? By Arielle O'Shea Do You Need a Financial Advisor? 7 Ways to Tell By Taryn Phaneuf How to Find Cheap or Free Financial Advice By June Sham 3 Steps to Prepare for Your First Financial Advisor Meeting By June Sham