Self-Employment Tax Calculator 2026
Self-employed? You pay both halves of FICA — 15.3%. An S-Corp could save you $8,000+/year. See your numbers.
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How to Use This Calculator
Tab "My SE Tax"
Enter your self-employment income and filing status. The calculator computes your net SE income (after business expenses), applies the 92.35% adjustment, and shows the full breakdown: Social Security (12.4%), Medicare (2.9%), and Additional Medicare Tax (0.9% above $200K). Under "More options," add business expenses, state tax rate, and any quarterly payments already made to see your total tax burden and take-home pay.
Tab "S-Corp Savings"
The #1 question for freelancers: should I form an S-Corp? Enter your total business income and set a reasonable salary (IRS expects 40–60% of net income). The calculator compares sole proprietorship vs. S-Corp side by side — including payroll tax, income tax, and S-Corp overhead costs. See your exact annual savings, monthly impact, and whether the switch clears the $5K break-even threshold.
Tab "Quarterly Estimates"
Avoid estimated tax penalties by paying the right amount each quarter. Enter your expected annual SE income, any W-2 withholding, and your prior year's tax. The calculator shows the safe harbor amount (100% or 110% of prior year), quarterly payment schedule with all four deadlines, and how much you still owe to avoid penalties.
The Formulas
SE taxable base = Net SE income × 92.35%
Social Security = min(SE base, $184,500) × 12.4%
Medicare = SE base × 2.9%
Additional Medicare = max(0, combined earnings − threshold) × 0.9%
Total SE tax = SS + Medicare + Additional Medicare
Why 92.35%? W-2 employees pay FICA only on wages — the employer's 7.65% half isn't taxed. The 92.35% adjustment (100% − 7.65%) creates parity for self-employed individuals, preventing a circular calculation where you'd pay tax on your own tax.
Above-the-line deduction: 50% of SE tax (SS + Medicare only, not Additional Medicare Tax). This reduces your AGI and income tax, but not the SE tax itself.
QBI Deduction (§199A, permanent via OBBBA):
Deduction = 20% of Qualified Business Income
Limited to 20% of taxable income
SSTB phase-out: $201,775 Single / $403,550 MFJ (2026)
OBBBA minimum: $400 if QBI ≥ $1,000
S-Corp comparison:
Sole prop SE tax = Net income × 0.9235 × 15.3%
S-Corp payroll tax = Salary × 15.3% (both halves)
S-Corp savings = Sole prop total tax − S-Corp total tax − overhead
SE tax rates for 2026: Social Security wage base $184,500 (SSA), Additional Medicare threshold $200K/$250K (not indexed since 2013). QBI deduction made permanent by the One Big Beautiful Bill Act (OBBBA, July 2025) with expanded phase-out ranges.
Example
Marcus — Freelance Software Developer in Texas
Filing Single. SE income $80,000. Business expenses $15,000. No state income tax (Texas).
Marcus pays $9,184 in SE tax — that's both halves of FICA on his net profit. The 92.35% adjustment saves him about $700 compared to paying on the full amount. His quarterly estimated payment is about $3,933.
2026 Quarterly Schedule
Use Form 1040-ES to make payments via IRS Direct Pay, EFTPS, or by mail. If your remaining tax after W-2 withholding is under $1,000, no penalty applies.