What is self-employment tax?
When you have a job, you and your employer each pay half of Social Security and Medicare. When you work for yourself, you pay both halves. The IRS (Topic 554) sets the rate at 15.3%: 12.4% for Social Security and 2.9% for Medicare.
You owe it if your net earnings from self-employment are $400 or more. You figure it on Schedule SE and pay it with your income tax, usually through quarterly estimated payments.
How do you calculate it?
The tax doesn’t apply to your whole profit, only to 92.35% of it, which is the part that stands in for wages:
Self-employment tax = net profit × 92.35% × 15.3%
- Social Security (12.4%) applies only up to the 2026 wage base of $184,500, including any W-2 wages you also earned.
- Medicare (2.9%) has no cap.
- Additional Medicare Tax (0.9%) applies to earnings above $200,000 if you are single, or $250,000 if you are married filing jointly (IRS Topic 560).
How much self-employment tax will I pay in 2026?
Figures from our self-employment tax calculator, filing single with no W-2 wages:
| Net profit | Social Security | Medicare | Self-employment tax |
|---|---|---|---|
| $30,000 | $3,435.42 | $803.45 | $4,238.87 |
| $50,000 | $5,725.70 | $1,339.08 | $7,064.78 |
| $100,000 | $11,451.40 | $2,678.15 | $14,129.55 |
| $200,000 | $22,878.00 (capped) | $5,356.30 | $28,234.30 |
| $250,000 | $22,878.00 (capped) | $6,695.38 | $29,573.38 + $277.88 Additional Medicare |
Up to the wage base, the effective rate on profit is about 14.13%. Above it, only Medicare keeps growing.
Can you deduct self-employment tax?
Yes, half of it. You subtract the employer-equivalent half from your income on Form 1040, which lowers your income tax, but not the self-employment tax itself. On $50,000 of profit, the deductible half is $3,532.39.
Income tax is a separate bill on top of self-employment tax. To set a rate that covers both, try the freelance rate calculator.
Official sources
- IRS Topic No. 554: Self-Employment Tax · 15.3% rate, 92.35% of net earnings, $400 threshold and deductible half
- IRS Topic No. 560: Additional Medicare Tax · Additional Medicare Tax thresholds
- IRS Publication 15 (2026): Employer's Tax Guide · 2026 Social Security wage base of $184,500