Applying 15.3% to gross revenue
Self-employment tax starts with net profit, then applies the 92.35% adjustment. Gross client payments are not the base.
Self-Employment Tax Calculator
Estimate the 15.3% self-employment tax you owe on your net business profit. This calculator breaks out the Social Security and Medicare portions, applies the 2026 $184,500 Social Security cap and the 0.9% Additional Medicare Tax, and shows the half you can deduct. Figures are for US tax year 2026.
How self-employment tax works in 2026
When you work for yourself, you pay both the employee and employer halves of payroll tax - together called self-employment (SE) tax. The combined rate is 15.3%, made up of two parts:
- 12.4% Social Security, on net earnings up to the 2026 wage base of $184,500. Earnings above that cap are not subject to the Social Security portion.
- 2.9% Medicare, with no income cap, on all of your net earnings.
Crucially, SE tax applies to only 92.35% of your net profit. Schedule SE multiplies your net profit by 0.9235 to get your "net earnings from self-employment," and the 15.3% rate is applied to that figure.
The Additional Medicare Tax and the deductible half
- +0.9% Additional Medicare Tax applies to net earnings above $200,000 (single) or $250,000 (married filing jointly).
- Half is deductible. You can deduct one-half of your SE tax as an above-the-line deduction, which lowers the income tax you owe (though not the SE tax itself).
Self-employment tax is separate from - and on top of - your federal and state income tax. To see your full bill, use the 1099 tax calculator.
Worked example: $60,000 net profit
This example shows why the 15.3% headline rate is not applied directly to gross revenue.
- Net profit
- $60,000 - Schedule C profit after ordinary business expenses.
- Net earnings for SE tax
- $55,410 - $60,000 x 92.35%.
- SE tax before deduction
- about $8,478 - 15.3% applied to $55,410, before any wage-base interaction.
- Above-the-line deduction
- about $4,239 - half of SE tax can reduce income tax, but not SE tax itself.
Use this calculator for the payroll-tax portion. Use the 1099 tax calculator when you need the full federal, state, and SE tax picture.
Self-employment tax mistakes to avoid
Ignoring W-2 wages
W-2 wages can use part or all of the Social Security wage base before self-employment income is considered.
Thinking the half deduction is a refund
The deductible half reduces income tax. It does not cut the SE tax bill in half.
Forgetting income tax
SE tax is only payroll tax. A freelancer may still owe federal and state income tax on top.
Official sources used for this estimate
- IRS: Self-employment tax
Official IRS overview of Social Security and Medicare taxes for self-employed workers.
- IRS: About Schedule SE
Schedule SE is the form used to calculate self-employment tax.
- Social Security Administration: Contribution and benefit base
Annual wage-base table for Social Security tax.
Estimate your full 1099 tax bill
Self-employment tax is just one piece. See your total federal, state, and SE tax - and how much to set aside.
Open the 1099 tax calculatorMore tax tools
1099 Tax Calculator
See how much to set aside for your full 1099 tax bill.
Quarterly Tax Calculator
Estimate your quarterly estimated-tax payments.
1099 vs W-2 Calculator
Compare contract pay to a salary on a true, after-tax basis.
Invoice Generator
Create and download a professional invoice in seconds.