How much is self-employment tax in 2026?

Self-employment (SECA) tax is 15.3% — 12.4% Social Security plus 2.9% Medicare — charged on 92.35% of your net profit. Social Security applies only to the first $184,500 of net earnings in 2026; Medicare has no cap, with an extra 0.9% above $200,000 single or $250,000 married.

Can I deduct self-employment tax?

You can deduct half of your SE tax (the Social Security and Medicare portions) as an above-the-line adjustment, which lowers your income tax — though not the SE tax itself.

What is the QBI deduction?

The Section 199A qualified business income deduction lets many self-employed people deduct up to 20% of their business income from taxable income. It was made permanent in 2025, with phase-outs for higher earners in certain service businesses.

United States · 2026 tax year

US Self-Employment Tax Calculator

Estimate the full federal bill on 1099 / Schedule C income — the 15.3% SECA tax (Social Security + Medicare on 92.35% of profit), the half-SE deduction, the 20% QBI deduction, federal income tax, and your quarterly payments.

Your business

Filing status

Gross business income

Business expenses Schedule C deductions

Net profit$0

Claim the 20% QBI deduction (§199A)

Total federal tax

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on — profit · keep —

Kept – SE tax – Income tax –

Net profit$0

Self-employment tax (15.3%)$0

Federal income tax$0

After-tax income$0

Quarterly estimated tax: if you'll owe $1,000+, pay roughly — each quarter via Form 1040-ES — due Apr 15, Jun 15, Sep 15 and Jan 15.

Self-employment tax

Federal income tax

Effective rate

Marginal bracket

How self-employment tax works

When you work for yourself, you owe two separate federal taxes on your profit. First is self-employment (SECA) tax — the Social Security and Medicare contributions an employee normally splits with an employer, so you pay both halves: 15.3% (12.4% + 2.9%) on 92.35% of your net profit. Social Security stops at the $184,500 wage base (2026); Medicare keeps going, with an extra 0.9% above $200,000. Second is ordinary federal income tax on what's left.

The deductions that soften it

Two adjustments help. You deduct half your SE tax above the line, and most sole proprietors can take the 20% QBI deduction — both reduce the income your federal tax is calculated on (though neither reduces the SE tax itself). The 92.35% factor exists for the same reason: it mirrors the employer's half of FICA that a W-2 worker never pays tax on.

Pay as you go

There's no employer withholding, so the IRS expects quarterly estimated payments. Miss them and an underpayment penalty can apply, even if you settle up in April.

Frequently asked questions

How much will I owe?

Enter your profit above for a full split of SE tax and federal income tax, your effective rate, and a quarterly estimate. Most of the surprise for new freelancers is the 15.3% SE tax, which sits on top of income tax.

Should I form an S-corp?

Above roughly $80,000–$100,000 of profit, an S-corp election can cut SE tax by splitting pay into salary and distributions — but it adds payroll and filing costs. It's worth modelling with an accountant.

Does the QBI deduction always apply?

Often, but not always — it phases out for higher earners in certain service businesses (consultants, lawyers, etc.). This tool applies a simplified 20%; confirm your eligibility.

Educational estimate — not tax advice. US 2026: SECA 15.3% (12.4% Social Security to the $184,500 base + 2.9% Medicare, +0.9% over $200k/$250k/$125k) on 92.35% of net profit; half-SE deduction; simplified 20% QBI deduction (limited to 20% of taxable income); standard deduction by status; 2026 federal brackets. It assumes self-employment income only (no W-2 wages), and excludes state tax, the detailed QBI/SSTB phase-outs, SEP/solo-401(k) contributions, the home-office deduction and credits. Confirm with the IRS or a CPA.