Self-employment tax for 2026 is 15.3% of 92.35% of your net profit: 12.4% for Social Security on the first $184,500 and 2.9% for Medicare on all of it. On $27,355 of profit that is about $3,865. You owe nothing if your net earnings from self-employment are under $400.
On the example net profit (15.3% of 92.35%).
Show the math
| Gig earningsSchedule C, line 1 | $42,000 |
| Mileage deductionSchedule C, line 9 (72.5¢ and 76¢ a mile) | −$13,745 |
| Other business expensesSchedule C | −$900 |
| Net profitSchedule C, line 31 | $27,355 |
| Self-employment taxSchedule SE (15.3% of 92.35% of profit) | $3,865 |
| Half of self-employment taxSchedule 1 adjustment | −$1,933 |
| Adjusted gross incomeForm 1040 | $25,422 |
| Standard deductionForm 1040 | −$16,100 |
| Tips deductionSchedule 1-A (up to $25,000) | −$11,500 |
| Business income deductionForm 8995 (QBI) | −$0 |
| Taxable incomeForm 1040 | $0 |
| Federal income tax2026 tax brackets | $0 |
| Texas income taxNo state income tax | $0 |
| Total tax | $3,865 |
An estimate for planning, not tax advice. See how we calculate and our verified examples.
How self-employment tax works on Schedule SE
Employees split Social Security and Medicare tax with their employer. When you’re self-employed you pay both halves, so the rate is 15.3% instead of 7.65%.
| Part | Rate | Applies to |
|---|---|---|
| Social Security | 12.4% | The first $184,500 of combined wages and self-employment earnings in 2026 |
| Medicare | 2.9% | All self-employment earnings |
| Additional Medicare | 0.9% | Earnings above $200,000 single or head of household, $250,000 married filing jointly |
The 92.35% net earnings rule
You only pay self-employment tax on 92.35% of your net profit. That mirrors the employer half of the tax, which employees never see in their wages.
Deducting half of it
You can deduct half of your self-employment tax (not counting the 0.9% surtax) when you work out your income tax. It lowers income tax, not self-employment tax itself.
The $400 rule
If your net earnings from self-employment (net profit × 92.35%) are under $400, you owe no self-employment tax. The calculator applies this automatically.
If you also have a W-2 job
Your wages count toward the $184,500 Social Security limit first. If your wages are already above it, you only pay the 2.9% Medicare part on your gig profit. Enter your wages under More options.
More calculators
- 1099 Tax Calculator 2026
- Quarterly Tax Calculator 2026
- No Tax on Tips Calculator 2026
- Mileage Deduction Calculator 2026
Self employment tax calculator questions
What is the self-employment tax rate for 2026?
15.3%: 12.4% Social Security on the first $184,500 of combined earnings and 2.9% Medicare on all earnings, applied to 92.35% of net profit. A further 0.9% applies above $200,000 ($250,000 married filing jointly).
Is self-employment tax on top of income tax?
Yes. You pay both. Half of your self-employment tax is deductible when you work out income tax.
Do tips get self-employment tax?
Yes. The new tips deduction lowers federal income tax only. Self-employment tax still applies to all your profit, including tips.
When don’t I owe self-employment tax?
When your net earnings from self-employment, which is net profit times 92.35%, are under $400 for the year.