2026 Self-Employment Tax Calculator

How self-employment tax is calculated in 2026

Self-employment tax is the Social Security and Medicare tax for people who work for themselves. An employee splits it with their employer; when you are self-employed you pay both halves. This self-employment tax calculator follows Schedule SE:

1. Start with net profit. That is your business income minus deductible business expenses (Schedule C line 31, or your share from a partnership).
2. Multiply by 92.35%. This gives your net earnings from self-employment. It mirrors the fact that employees don't pay FICA on the employer's half. If the result is under $400, there is no self-employment tax.
3. Social Security: 12.4% of net earnings up to the 2026 wage base of $184,500. If you also had W-2 wages, the room under the wage base shrinks by those wages.
4. Medicare: 2.9% of all net earnings, with no cap.
5. Additional Medicare Tax: 0.9% of net earnings above $200,000 ($250,000 married filing jointly, $125,000 married filing separately). Your W-2 wages use up that threshold first. This part is reported on Form 8959.
6. Deduct half. Half of the Social Security and Medicare portion is an adjustment to income on Schedule 1, which lowers your income tax.

2026 rates and thresholds used

The income tax estimate uses the 2026 federal brackets from IRS Rev. Proc. 2025-32 (10% to 37%), shown in full on our 2026 federal income tax calculator.

Income tax on your profit and quarterly payments

Self-employment tax is only part of the bill. Your profit, minus the deductible half of SE tax, is also subject to income tax. Most sole proprietors also get the qualified business income (QBI) deduction: 20% of the business's qualified income, limited to 20% of taxable income. The calculator applies it in full below the threshold. Above the threshold it phases the deduction toward 50% of W-2 wages paid by the business, which is $0 for most one-person businesses.

To show what the business adds, we figure income tax twice — once with your profit and once without it — and treat the difference as "income tax on profit." Add self-employment tax and any Additional Medicare Tax, divide by four, and you have a suggested quarterly payment on Form 1040-ES. For 2026 the federal due dates are April 15, June 15 and September 15, 2026, and January 15, 2027.

Paying a quarter of your expected tax each quarter is the simple approach. You can also avoid the underpayment penalty by paying 100% of last year's tax (110% if last year's AGI was over $150,000). The quarterly estimated tax calculator compares both and adds Virginia's 760ES.

What this estimate leaves out

• Virginia income tax. Virginia taxes your profit too, at up to 5.75% — use the Virginia income tax calculator.
• Other deductions and credits. Itemized deductions, the extra standard deduction and senior deduction for people 65+, the self-employed health insurance deduction, retirement plan contributions (SEP, solo 401(k)), the Child Tax Credit and the new tips and overtime deductions are not included.
• QBI details. We assume your business is not a specified service business, ignore the property (UBIA) part of the wage limit and the new $400 minimum QBI deduction, and treat qualified business income as profit minus half of SE tax.
• Special cases. Church employee income, farm and nonfarm optional methods, two spouses each with self-employment income, and capital gains taxed at lower rates are not modeled.

Lowering self-employment tax mostly comes down to legitimate deductions — see our 2026 small business tax deductions guide. Once profit is steady and higher, an S corporation election can also help; try the S corp tax savings calculator. If you'd like help with tax planning or bookkeeping for your business, book an appointment.