Self-Employment Tax Calculator
Estimate 2026 self-employment tax on 1099 and freelance income, federal income tax on it, and your quarterly estimated payments.
What is self-employment tax?
Employees split Social Security and Medicare with their employer. When you work for yourself you pay both halves: 15.3% (12.4% Social Security plus 2.9% Medicare) on 92.35% of your net profit. In 2026, the Social Security part stops at $184,500 of combined wages and self-employment earnings; Medicare has no cap, and an extra 0.9% applies above $200,000 (single).
SE tax = Net profit × 92.35% × 15.3%
A freelancer with $60,000 of net profit: $60,000 × 0.9235 = $55,410 of SE earnings, × 15.3% = $8,478 of self-employment tax. Half of it ($4,239) is deductible when figuring income tax.
Income tax on top
Self-employment tax is separate from income tax. Your profit, minus half of SE tax, the standard deduction and often the 20% qualified business income (QBI) deduction, is taxed at the regular federal brackets. The estimate above applies a simplified QBI deduction.
Quarterly estimated taxes
No one withholds tax from 1099 income, so the IRS expects quarterly payments if you will owe $1,000 or more. 2026 due dates are April 15, June 15 and September 15, 2026, and January 15, 2027. You avoid underpayment penalties if you pay at least 100% of last year’s tax (110% if your AGI was over $150,000) or 90% of this year’s.
Lowering the bill
- Track every business expense: equipment, software, a home office, business mileage.
- Contribute to a SEP-IRA or Solo 401(k) to cut income tax.
- Self-employed health insurance premiums are deductible from income tax.
Frequently asked questions
How much is self-employment tax in 2026?
15.3% of 92.35% of net profit: 12.4% for Social Security up to $184,500 and 2.9% for Medicare, plus 0.9% above $200,000 for single filers.
How much should I set aside for taxes as a 1099 worker?
Many freelancers set aside 25%–30% of profit to cover self-employment tax plus federal income tax, more in high-tax states.
Do I pay self-employment tax if I made less than $400?
No. Self-employment tax applies when net earnings are $400 or more.
Last reviewed October 2026. Results are estimates; check important decisions with a qualified professional.