Self-employment tax is 15.3% of 92.35% of your net profit, made up of 12.4% Social Security and 2.9% Medicare. Enter your profit to see each piece, the half you can deduct, and the step-by-step math behind it.
By Amara Taylor · Last updated October 8, 2026 · IRS and SSA figures for tax years 2025 and 2026
Estimate only. This is the self-employment tax, not your income tax. For both together, use the 1099 tax calculator.
This table follows the same order as Schedule SE, so you can compare it with your return.
| Step | Amount |
|---|---|
| Enter your net profit above to see each step. | |
It is 15.3% of your net earnings from self-employment, which the IRS defines as 92.35% of your net profit. Of that 15.3%, 12.4% is Social Security tax and 2.9% is Medicare tax. It is the self-employed version of the Social Security and Medicare tax that an employer and employee each pay half of.
Two limits shape the result. Social Security tax applies only up to a yearly cap on earnings, $176,100 for 2025 and $184,500 for 2026, counting any W-2 wages you also earned. Medicare tax has no cap. Above $200,000 of income for single filers, $250,000 for joint filers and $125,000 for married filing separately, an Additional Medicare Tax of 0.9% applies as well.
A single filer with $80,000 of net profit and no W-2 job, tax year 2026.
| Step | Amount |
|---|---|
| Net profit | $80,000 |
| Net earnings: $80,000 × 92.35% | $73,880 |
| Social Security: $73,880 × 12.4% | $9,161 |
| Medicare: $73,880 × 2.9% | $2,143 |
| Self-employment tax | $11,304 |
| Deductible half | $5,652 |
The tax is about 14.1% of the profit, not 15.3%, because of the 92.35% step. The $5,652 deduction comes off income when you figure your income tax. It does not reduce the self-employment tax itself.
For a return with several income types, check with a CPA or enrolled agent.
Usually yes once it adds up. The IRS says you must file Schedule SE when net earnings reach $400, which works out to about $434 of net profit. Below that you do not owe self-employment tax, although the income may still be taxable.
Yes on both counts. The IRS says the rules apply regardless of age, even if you already receive Social Security or Medicare. A day job’s wages count toward the Social Security cap, so they can reduce the Social Security part of your self-employment tax.
Most self-employed people pay it with their income tax through quarterly estimated payments. The guide to quarterly estimated taxes has the dates and the safe-harbor rules.
Yes. Self-employment tax is figured on net profit, so every deductible business expense reduces it. Gross receipts are not what you are taxed on.
Estimate for planning and learning, not tax advice. Sources: IRS Topic 554, Self-employment tax, IRS self-employment tax page, IRS Schedule SE instructions, SSA contribution and benefit base. See also our editorial standards.
Last updated: October 8, 2026 · Written and tested by Amara Taylor, Content Lead, Anchor AI Tools.