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Self-Employment Tax Calculator

What freelancing, contracting or a side business actually owes — Schedule SE plus the federal income tax on the profit, and what to set aside each quarter.

InputsSE-1040
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SE tax applies to $73,880 — that is your profit × 92.35%, not the full profit. The 15.3% headline rate is charged on that smaller base.

Set aside each quarter23.5% of profit
$4,708
self-employment tax−$11,304
federal income tax on profit−$7,527
yours to keep$61,170
half of SE tax, deductible$5,652
Social Security 12.4%
$9,161
Medicare 2.9%
$2,143
total for the year
$18,830

On $80,000 of net profit, self-employment tax is $11,304 and federal income tax on that profit is about $7,527 — roughly $4,708 a quarter to set aside, leaving $61,170 of the profit.

The 15.3% rate applies to $73,880, which is the profit × 92.35% — not the full amount — and half the SE tax ($5,652) is deductible. Single filer, 2026 federal, no state tax and no other income.

Why it is 15.3% and not 7.65%

An employee sees 7.65% come out of their paycheck for Social Security and Medicare. What they do not see is their employer paying another 7.65% on their behalf. When you work for yourself you are both sides of that arrangement, so you pay both halves. That is the whole reason self-employment tax exists as its own line on the return.

Two things soften it. SE tax is charged on 92.35% of your profit rather than all of it, and half the SE tax is deductible against your income tax — above the line, so you get it whether or not you itemize. On $80,000 of profit that is $5,652 off your taxable income.

If you also have a job, the maths changes completely

The 12.4% Social Security component only applies up to the annual wage base — $184,500 for 2026 — and your W-2 wages use that base up first. Someone earning $190,000 at a job has already covered it, so a $30,000 side business owes no Social Security component at all. Their SE tax is $963, the 2.9% Medicare part, instead of the $4,239 a flat 15.3% assumption would suggest.

Most quick calculators miss this, which is why side-hustle estimates are so often far too high. Enter your W-2 wages above and the calculator handles it.

What to send each quarter, without guessing

Estimated tax is due four times a year, and the penalty for underpaying is avoidable without predicting your income. Use the safe harbor: pay 90% of this year's liability, or 100% of last year's total tax — 110% if last year's AGI was over $150,000. Hit either and no underpayment penalty applies, even if you earn much more than expected.

The prior-year route is usually the easier one, because last year's number is already known. Set the money aside as it arrives rather than at the deadline — the tax is on profit you have already been paid.

Common questions

How much is self-employment tax?
15.3% — 12.4% Social Security plus 2.9% Medicare — but charged on 92.35% of your net profit, not the whole thing. On $80,000 of profit that is $11,304, and half of it ($5,652) is deductible against your income tax.
Why is self-employment tax 15.3% when employees pay 7.65%?
Because an employee's 7.65% is only half the bill — their employer pays the other 7.65% invisibly. Self-employed people are both parties, so they pay both halves. The deductible half of SE tax is the tax code's partial acknowledgement of that.
What is the 92.35% adjustment?
SE tax applies to 'net earnings from self-employment', which is your net profit multiplied by 92.35%. The factor mirrors the fact that an employer's share of FICA is not itself taxed as the employee's wages. It is why a naive 15.3% × profit overstates the bill.
Do I still pay self-employment tax if I also have a job?
Partly. W-2 wages use up the $184,500 Social Security wage base first, so if your job already covers it, the 12.4% Social Security part does not apply to your side income at all — only the 2.9% Medicare part, which has no cap. On $30,000 of side profit with $190,000 of wages, SE tax is just $963.
How much should I send the IRS each quarter?
On $80,000 of profit with no other income, about $4,708 per quarter covers SE tax and the federal income tax on that profit. The safe way to avoid a penalty is the safe harbor: pay 90% of this year's liability or 100% of last year's — 110% if last year's AGI was over $150,000 — and no underpayment penalty applies even if you end up owing more.
Does this include state tax?
No. This is federal SE tax plus federal income tax on the profit. State income tax is separate and varies — use the income tax calculator with your state for that layer.

How we calculate this

Net earnings = profit × 92.35%. Social Security at 12.4% on the part still under the $184,500 wage base after W-2 wages, Medicare at 2.9% uncapped, plus the 0.9% Additional Medicare surtax above the statutory threshold. Income tax on the profit is the marginal 2026 federal tax it creates after subtracting the deductible half of SE tax.

Federal only — state income tax is separate. This models a sole proprietor or single-member LLC filing Schedule C. An S-corp election changes the calculation substantially and is not modelled here.

Full methodology & sources →
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Estimates for the 2026 tax year, federal only. Business structure, deductions and credits change the answer materially — this is general information, not tax advice.