Business owners

Self-Employment Tax Calculator

Estimate 2026 self-employment tax and income tax on your 1099 or business profit, and how much to set aside each quarter.

Updated for the 2026 tax year

Estimates only. These calculators use simplified assumptions, 2026 federal and North Carolina rules and the numbers you enter. They don't account for every type of income, deduction, credit or circumstance, so your actual results may be different. They are for general information and are not tax, legal or investment advice. Using them doesn't create a CPA-client relationship with Stancil. Talk with a CPA about your own situation before acting on a result. The calculations run in your browser, and the calculator doesn't send the numbers you enter to Stancil.

What is self-employment tax?

When you work for an employer, you pay 7.65% for Social Security and Medicare and your employer pays the other 7.65%. When you work for yourself, you pay both halves: 15.3%. That's self-employment (SE) tax, and it's on top of regular income tax.

How it's calculated

  1. Start with net profit from your business (income minus expenses).
  2. Multiply by 92.35% to get net earnings from self-employment.
  3. Apply 12.4% Social Security tax up to the $184,500 wage base for 2026 (less your own W-2 wages).
  4. Apply 2.9% Medicare tax on all of it, plus 0.9% above $200,000 ($250,000 married filing jointly).

You can deduct half of your SE tax when figuring income tax, which this calculator includes.

How much to set aside

Many freelancers and contractors set aside 25% to 35% of profit for taxes. The calculator shows your number and a quarterly amount, since the IRS expects estimated payments during the year. You need SE tax once net earnings reach $400.

Frequently asked questions

What is the self-employment tax rate for 2026?

15.3% on 92.35% of net self-employment earnings: 12.4% Social Security (up to $184,500 combined with your own W-2 wages) and 2.9% Medicare. An extra 0.9% Medicare tax applies above $200,000 for single filers.

How can I lower my self-employment tax?

Track every legitimate business expense, consider a retirement plan like a SEP or Solo 401(k) for income tax, and look at an S-corp election once profit is steady and high enough. The S-corp calculator shows the potential savings.

Do I have to make quarterly estimated payments?

Usually yes, if you expect to owe $1,000 or more when you file. Payments are due in April, June, September and January. Use our quarterly estimated tax calculator to find a safe-harbor amount.