Self-employment tax catches a lot of new freelancers off guard, because it’s separate from income tax and nobody withholds it for you. It’s 15.3% on most of your freelance profit — Social Security and Medicare, both halves, since there’s no employer splitting it with you anymore. This calculator works out exactly what that comes to, using the 2026 IRS rates.
| Net earnings subject to SE tax (92.35%) | $0 |
|---|---|
| Social Security (12.4%, up to $184,500 wage base) | $0 |
| Medicare (2.9%, no cap) | $0 |
| Base self-employment tax | $0 |
| Additional Medicare surtax (0.9% over threshold) | $0 |
| Half of base SE tax (deductible from income tax) | $0 |
How this is actually calculated
The IRS doesn’t tax your full profit for self-employment tax — only 92.35% of it, a small adjustment meant to roughly mirror how an employee’s wages aren’t taxed on the employer’s matching Social Security contribution. From there, 12.4% goes to Social Security, but only on earnings up to the annual wage base ($184,500 for 2026) — anything above that isn’t subject to the Social Security portion at all. The 2.9% Medicare portion, on the other hand, applies to every dollar with no ceiling, and if your net earnings pass $200,000 (or $250,000 married filing jointly), an extra 0.9% Medicare surtax kicks in on the amount above that line.
One thing worth knowing: half of your base self-employment tax is deductible when you calculate your income tax, which softens the blow slightly. This tool shows that half separately so you have the number ready for your tax software or accountant, but it doesn’t estimate income tax itself — that depends on your deductions, filing status and other income, which is a different calculation entirely.
If you haven’t been setting money aside as you go, the freelance tax set-aside calculator is a simpler, faster version for figuring out how much to save from each invoice.
Is self-employment tax the same as income tax?
No. Self-employment tax covers Social Security and Medicare and is calculated on Schedule SE. Income tax is calculated separately based on your total taxable income, deductions and filing status.
Do I still owe self-employment tax if my business had a net loss?
No. Self-employment tax only applies to net profit. If your allowable business expenses were higher than your income, there’s generally no self-employment tax owed for that year.
Does this calculator account for state tax?
No, this only covers the federal self-employment tax (Social Security and Medicare). State income tax, if your state has one, is calculated separately and varies by state.
This calculator uses 2026 federal self-employment tax rates and is for general estimation only, not tax advice. It does not account for state taxes, deductions, or income tax. Check with a tax professional or the IRS for your specific situation.
Once your profit is comfortably above a reasonable salary for your work, it’s worth checking whether an S-corp election would actually save money after costs — the S-corp tax savings calculator works out the difference.
Not sure whether you should be a sole proprietor, an LLC, or electing S-corp status in the first place? See LLC vs sole proprietorship vs S-corp for freelancers.
Self-employment tax is only half the tax picture — the QBI deduction calculator shows the income tax break most freelancers are eligible for on top of this.