Is self-employment tax the same as income tax?
No. Self-employment tax covers only Social Security and Medicare. You also owe federal income tax on the same profit — use the 1099 tax calculator to estimate both together.
Self-Employment Tax Calculator
Estimate the Social Security and Medicare tax you owe on freelance or business profit for 2026.
Your numbers
Tax year 2026, US federal only. Enter yearly amounts.
1099 and other business income minus business expenses (Schedule C profit).
Wages from a job, which count toward the Social Security wage base first.
Estimate
Results update as you type.
Enter your net profit to see the estimate.
Estimate only, not tax advice. Federal tax only: state and local taxes, credits, itemized deductions and other income are not included. Check your figures with a tax professional or IRS guidance.
What is self-employment tax?
Self-employment tax is the Social Security and Medicare tax for people who work for themselves. Employees split these taxes with their employer; when you are self-employed you pay both halves, which is why the rate is 15.3%: 12.4% for Social Security and 2.9% for Medicare.
You owe it when your net earnings from self-employment are $400 or more, and it applies whatever your age — even if you already receive Social Security or Medicare.
How to calculate self-employment tax
- Start with your net profit: business income minus business expenses (Schedule C).
- Multiply by 92.35% to get net earnings from self-employment.
- Apply 12.4% Social Security tax, but only up to the 2026 wage base of $184,500.00, reduced by any W-2 wages.
- Apply 2.9% Medicare tax to all net earnings.
- Deduct half of the result when you work out your adjusted gross income.
Example: $60,000.00 of net profit gives $55,410.00 of net earnings. Social Security tax is $6,870.84 and Medicare tax is $1,606.89, so self-employment tax is $8,477.73. You can deduct $4,238.87 of it from your income.
Self-employment tax by profit (2026, no W-2 wages)
| Net profit | SE tax | Deductible half |
|---|---|---|
| $20,000.00 | $2,825.91 | $1,412.96 |
| $40,000.00 | $5,651.82 | $2,825.91 |
| $75,000.00 | $10,597.16 | $5,298.58 |
| $120,000.00 | $16,955.46 | $8,477.73 |
| $200,000.00 | $28,234.30 | $14,117.15 |
Above the wage base, only the 2.9% Medicare part keeps growing, so the tax rises more slowly.
Frequently asked questions
What if I also have a W-2 job?
Wages count toward the Social Security wage base first. If your wages are $184,500.00 or more, you pay only the Medicare part on your self-employment earnings. Enter your wages to include this.
What is the Additional Medicare Tax?
An extra 0.9% on wages and self-employment income above $200,000.00 for single filers ($250,000.00 married filing jointly, $125,000.00 married filing separately). It is separate from self-employment tax and is not deductible.
When do I pay it?
Self-employment tax is reported on Schedule SE with your Form 1040. You may also need to pay it during the year through quarterly estimated tax payments.