1099 Self-Employment Tax Calculator
Estimate the Social Security and Medicare tax you owe on freelance, gig, and 1099 income for tax year 2025 or 2026 — plus the deduction that offsets part of it.
Self-employment tax calculator
Estimated self-employment tax
Quarterly payment schedule
| Due date | Covers income earned | Payment |
|---|
Estimated payments only — your actual amount also includes federal income tax.
What self-employment tax actually covers
When you work for an employer, your paycheck shows Social Security and Medicare tax withheld at 7.65%, and your employer pays another 7.65% behind the scenes. When you work for yourself, you are both the employee and the employer, so you pay both halves. That is why the self-employment tax rate is 15.3%: 12.4% for Social Security and 2.9% for Medicare.
This tax is separate from federal income tax. A 1099 freelancer with $80,000 of profit can owe self-employment tax even after deductions and credits bring their income tax down to zero.
Who has to pay it
You generally owe self-employment tax if you are a sole proprietor, an independent contractor paid on Form 1099-NEC, a member of a single-member LLC, or a partner in a partnership. Side gigs count too: DoorDash deliveries, Etsy sales, freelance writing, tutoring, and consulting all go on Schedule C.
You owe the tax once your net earnings from self-employment reach $400 for the year. Below that threshold, no self-employment tax is due, although you may still need to file a return for other reasons.
How the calculator works
The IRS does not apply the 15.3% rate to your full profit. It first multiplies net profit by 92.35%, which accounts for the employer half being deductible, and then applies the rates to that smaller base.
- Taxable base = net profit × 92.35%
- Social Security portion = 12.4% of the base, but only up to the annual wage base ($176,100 for 2025, $184,500 for 2026). If you also have W-2 wages, those wages use up part of that limit first.
- Medicare portion = 2.9% of the entire base, with no cap.
- Additional Medicare Tax = 0.9% of combined wages and self-employment earnings above $200,000 (single), $250,000 (married filing jointly), or $125,000 (married filing separately).
- Deductible half = half of the Social Security and Medicare portions, claimed as an adjustment to income. The 0.9% additional tax is not deductible.
Worked examples
| Net profit | Taxable base | Self-employment tax | Effective rate |
|---|---|---|---|
| $15,000 | $13,852.50 | $2,119.43 | 14.13% |
| $50,000 | $46,175.00 | $7,064.78 | 14.13% |
| $80,000 | $73,880.00 | $11,303.64 | 14.13% |
| $200,000 | $184,700.00 | $28,234.30 | 14.12% |
The effective rate dips above the Social Security wage base because the 12.4% portion stops at the cap while the 2.9% Medicare portion continues.
Should you make quarterly payments?
Yes, if you expect to owe $1,000 or more in total tax for the year. The IRS charges an underpayment penalty when you pay too little through withholding or estimated payments. Most self-employed workers pay four times a year, on April 15, June 15, September 15, and January 15 of the following year.
The quarterly figure above is a rough split of self-employment tax only. Your actual payment should include estimated federal income tax as well, which depends on your bracket, standard deduction, and other income.
Frequently asked questions
How much is self-employment tax in 2026?
15.3% of 92.35% of net earnings: 12.4% Social Security up to the $184,500 wage base and 2.9% Medicare with no cap. High earners may owe an additional 0.9% above the filing-status threshold.
Do I owe self-employment tax if I only made $5,000?
Yes, once net earnings reach $400. On $5,000 of profit the tax is about $707, and you can deduct roughly $353 of it.
Can I deduct half of my self-employment tax?
You can deduct the employer-equivalent half of the Social Security and Medicare portions as an adjustment to income on Schedule 1 of Form 1040. The 0.9% Additional Medicare Tax is not deductible.
Does a W-2 job change my self-employment tax?
Only if your wages are high. Your W-2 wages count toward the Social Security wage base first. If you already earned more than the cap at your job, your side income is subject only to the 2.9% Medicare portion.
Is this the same as income tax?
No. Self-employment tax funds Social Security and Medicare. Federal and state income tax are calculated separately on your taxable income, and you pay both.
Disclaimer: This calculator provides estimates for general information only and is not tax, legal, or financial advice. Tax law changes and individual circumstances vary. Verify your numbers with the IRS instructions for Schedule SE or a licensed tax professional before filing.
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