Full breakdown
| Net profit | |
| Net earnings subject to tax (92.35%) | |
| Social Security (12.4%) | |
| Medicare (2.9%) | |
| Additional Medicare (0.9%) | |
| Deductible half of self-employment tax | |
| Share of net profit | |
| Self-employment tax per quarter |
This is only the self-employment tax. You also owe federal income tax, which is not included here.
Your result will appear here.
How self-employment tax is calculated
Self-employed people pay both halves of Social Security and Medicare tax. The total rate is 15.3%: 12.4% for Social Security and 2.9% for Medicare.
The tax applies to 92.35% of your net profit. Social Security tax stops once your earnings reach the 2026 wage base of $184,500. Medicare tax has no cap. If your earnings are above $200,000 (single), $250,000 (married filing jointly) or $125,000 (married filing separately), an extra 0.9% Medicare tax applies. W-2 wages count toward those limits.
Worked example
You earn $60,000 in net profit. Multiply by 92.35% to get $55,410. Social Security is $6,870.84 and Medicare is $1,606.89, so the tax is $8,477.73. Half of that, $4,238.87, is deductible on your income tax return.
More worked examples
$30,000 net profit. Net earnings are $27,705 (92.35% of profit). Social Security is $3,435 and Medicare is $803, so self-employment tax is about $4,239, roughly 14.1% of profit.
$100,000 net profit. Net earnings are $92,350. Social Security is $11,451.40 and Medicare is $2,678.15, so the tax is $14,129.55.
$40,000 net profit plus $180,000 of W-2 wages (single). Your job wages already use most of the Social Security limit, so only $4,500 of room is left and Social Security tax is $558. Medicare is $1,071.26. Your combined income passes $200,000, so an extra 0.9% applies to $16,940 of your earnings, adding $152.46. The total is $1,781.72.
Quarterly estimated payments
No employer withholds tax from 1099 income, so you usually pay in four installments. The 2026 due dates are April 15, June 15, September 15 and January 15, 2027. A date can move when it falls on a weekend or holiday, so confirm with the IRS.
To avoid an underpayment penalty you generally need to pay the smaller of 90% of this year's tax or 100% of last year's tax. The second figure becomes 110% if last year's adjusted gross income was over $150,000 ($75,000 if married filing separately).
The quarterly figure in this calculator is only the self-employment tax divided by four. Your income tax also has to be covered, so your real payment will be higher.
Ways to lower the bill
Self-employment tax is figured on profit, not on what you collect, so every legitimate business expense matters. Keep receipts and mileage logs. The deductible half of the tax lowers your income tax, but it does not lower the self-employment tax itself.
Common mistakes
- Applying 15.3% to your full profit instead of 92.35% of it.
- Forgetting that business expenses reduce profit before the tax is figured.
- Treating this as your whole tax bill. Income tax is separate.
- Ignoring W-2 wages from a job, which change how much Social Security tax is left to pay.
Questions
Do I owe this if I earn under $400?
No. Self-employment tax applies when your net earnings are $400 or more.
How do I lower it?
Track every legitimate business expense. Lower net profit means lower tax. A tax professional can tell you what applies to you.
Does this include state tax?
No. It covers the federal self-employment tax only.
Do I pay this on a side hustle?
Yes, if your net earnings from it are $400 or more for the year.
Is self-employment tax the same as income tax?
No. It pays for Social Security and Medicare. Income tax is figured separately on your whole return.
Sources and review
Last reviewed October 2026. Rates and the $184,500 Social Security limit follow IRS and Social Security Administration figures for 2026.
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