Self-employment tax at different profit levels
Including Additional Medicare Tax, using your filing status and wages above.
| Net profit | SE + Additional Medicare | Share of profit |
|---|---|---|
| Enter your numbers above to see this table. | ||
How to use this calculator
- Enter your net profit: what clients paid you minus your business expenses.
- Choose your filing status. It only affects the Additional Medicare Tax threshold.
- Add any W-2 wages. Wages use up part of the Social Security limit first, so you may pay less Social Security tax on your freelance income.
How it's calculated
No self-employment tax is due if your net earnings are under $400. The 92.35% step exists because employees don't pay payroll tax on their employer's share, so self-employed people get the same treatment.
Worked example
Jamie is a single freelance developer with $80,000 net profit in 2026 and no other job.
Jamie owes $11,303.64 in self-employment tax, and can deduct $5,651.82 when working out income tax. If Jamie earned $250,000, Social Security would stop at the $184,500 limit ($22,878), and $277.88 of Additional Medicare Tax would apply on the earnings above $200,000.
What this calculator doesn't cover
- Federal and state income tax. Use our take-home pay calculator for the full picture.
- Church employee income, farm optional methods and other special cases on Schedule SE.
- Tax years other than 2026.
Frequently asked questions
What is self-employment tax?
It's Social Security and Medicare tax for people who work for themselves. Employees split these taxes with their employer; self-employed people pay both halves, which is why the rate is 15.3% rather than 7.65%.
Do I pay self-employment tax on all my income?
On 92.35% of your net profit. The Social Security part stops once your combined wages and net earnings reach $184,500 for 2026. The Medicare part has no limit.
Can I deduct self-employment tax?
You can deduct half of it (the "employer-equivalent" portion) when working out your adjusted gross income. It reduces your income tax, not the self-employment tax itself.
When do I pay it?
Through quarterly estimated tax payments during the year, and on Schedule SE with your tax return. Our quarterly estimated tax calculator works out the payments.
Sources (tax year 2026): IRS self-employment tax, IRS Topic 751 (wage base), 2026 Form 1040-ES.