About this self-employment tax calculator
US self-employment tax calculator for freelancers and 1099 contractors
When you work as a freelancer or independent contractor in the US, you don't have an employer splitting your payroll taxes with you. Instead you pay self-employment (SE) tax — the combined employee plus employer share of Social Security and Medicare, currently 15.3%, on 92.35% of your net profit. On top of that, you still owe regular federal income tax. This calculator breaks the whole picture down: SE tax, the deductible half, estimated income tax, and a suggested quarterly payment.
How the self-employment tax is computed
- 1
Work out net profit
Business income minus business expenses gives your annual net profit.
- 2
Apply the 92.35% factor
Net earnings subject to SE tax = net profit × 0.9235.
- 3
Add Social Security and Medicare
12.4% Social Security up to the wage base ($184,500 in 2026) plus 2.9% Medicare, plus 0.9% Additional Medicare above your threshold.
- 4
Estimate income tax and payments
Half of SE tax is deducted, federal income tax is estimated at your chosen rate, and the combined total is split into quarterly payments.
2026 self-employment tax rates
| Component | Rate | Notes |
|---|---|---|
| Social Security | 12.4% | Capped at $184,500 of net earnings |
| Medicare | 2.9% | No cap |
| Additional Medicare | 0.9% | Above $200K single / $250K joint / $125K separate |
| SE tax base factor | 92.35% | Applied to net profit |
| Deductible half | 50% of SE tax | Adjustment to income |
Worked example: freelancer with $100,000 net profit
A single freelancer has $100,000 of net profit in 2026 and no W-2 wages. They set a 12% federal income tax estimate.
- Net profit
- $100,000
- Social Security tax
- $11,451
- Medicare tax
- $2,678
- Self-employment tax
- ≈ $14,130
- Deductible half of SE tax
- ≈ $7,065
- Estimated federal income tax (12%)
- ≈ $11,152
- Total estimated federal tax
- ≈ $25,282
- Suggested quarterly payment
- ≈ $6,320
Estimated result
Total federal tax ≈ $25,282 a year, or about $6,320 per quarter
Note that the freelancer pays roughly the same combined Social Security and Medicare as an employee plus employer would, because there is no employer to share the 15.3%.
Common mistakes freelancers make
- Forgetting SE tax entirely and only budgeting for income tax — the two together are much larger.
- Using gross income instead of net profit. SE tax applies to profit after expenses, not revenue.
- Ignoring Additional Medicare when income is above the threshold for their filing status.
- Skipping quarterly payments. The IRS can charge interest and penalties on underpaid estimated tax.
This is an estimate for planning
Official references
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