Self-Employment Tax Calculator
Filing status
Total 1099-NEC + cash income before any deductions
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How to use
- 1 Enter gross self-employment revenue (1099-NEC + cash + Schedule C income from all clients combined).
- 2 Enter Schedule C deductible expenses (home office, software, mileage at 70¢/mile in 2025/$0.70+ in 2026, business travel, supplies, contractor payments, internet).
- 3 Choose filing status (affects Additional Medicare threshold and QBI phase-in).
- 4 Enter any W-2 SS wages already paid this year — those count against the $184,500 SS base, reducing your SE SS tax.
- 5 Click Calculate to see SE tax breakdown (SS + Medicare + Additional Medicare), the 20% QBI deduction estimate, half-SE deduction, and your suggested quarterly payment.
About Self-Employment Tax Calculator
FAQ
Q How is self-employment tax calculated in 2026?
SE tax is 15.3% of 92.35% of your net Schedule C profit. That breaks down as 12.4% Social Security (capped at $184,500 of combined W-2 + SE wages) plus 2.9% Medicare (no cap), plus 0.9% Additional Medicare on net SE earnings above $200K single / $250K MFJ.
Q When do I have to pay self-employment tax?
When net SE earnings exceed $400 in any tax year. Below $400, no SE tax due. SE tax is reported on Schedule SE filed with your Form 1040 by April 15. Quarterly estimated payments required if total expected tax exceeds $1,000.
Q What is the QBI deduction for self-employed?
Section 199A lets pass-through business owners (sole proprietors, S-corps, LLCs, partnerships) deduct 20% of qualified business income. Below $201,750 single / $403,500 MFJ, the deduction is straightforward. Above thresholds, W-2 wage and property tests apply, and SSTBs (medicine, law, consulting) phase out completely.
Q Can I deduct half of my self-employment tax?
Yes. The "employer half" of SE tax (7.65% of net earnings) is an above-the-line deduction reported on Schedule 1, Line 15. Reduces AGI, doesn't require itemizing. Standard for all self-employed who pay SE tax.
Q How do I avoid quarterly estimated tax penalties?
Pay either (a) 100% of last year's total tax (110% if your AGI exceeded $150,000) by year-end via withholding + estimates, OR (b) 90% of current year's actual tax. Either path = safe harbor. Use Form 1040-ES vouchers due April 15, June 15, September 15, January 15.
Q Should I form an LLC or S-corp to save on SE tax?
Default LLC = same SE tax as sole prop. S-corp election lets you split income into reasonable salary (subject to FICA) plus distributions (NOT subject to SE tax). Generally pays off above $40K-50K net profit. Below that, the extra payroll/accounting cost outweighs SE tax savings.
Q Are health insurance premiums deductible for self-employed?
Yes. 100% of your health insurance premiums (medical, dental, long-term care) are deductible above-the-line under IRC §162(l), provided you have net SE income, no employer-subsidized coverage available, and no spouse with employer coverage. Reported on Schedule 1, Line 17.
Q What's the difference between SE tax and income tax?
SE tax is FICA payroll tax (Social Security + Medicare) the IRS collects from self-employed. Income tax is the federal/state tax on your taxable income. They are SEPARATE and CUMULATIVE. A freelancer at $80K profit pays roughly $11K SE tax PLUS ~$9-12K federal income tax PLUS state.
Official resources
IRS — Self-Employment Tax (Topic 554)
Internal Revenue Service official guide to self-employment tax: Schedule SE, FICA rates, half deduction, and filing rules.
IRS Form 1040-ES — Estimated Tax for Individuals
Official IRS form and instructions for quarterly estimated tax payments — vouchers due April, June, September, January.
IRS — Qualified Business Income Deduction (199A)
IRS official page on Section 199A QBI deduction including 2026 thresholds, phase-in/out, and OBBBA permanent status.
IRS Schedule SE — Self-Employment Tax
Internal Revenue Service Schedule SE form and instructions for calculating self-employment tax on net Schedule C earnings.