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Self-employment tax calculator for 2026
As a sole proprietor or 1099 contractor you pay both halves of Social Security and Medicare. See how much on your net profit.
Self-employment tax is 15.3% of 92.35% of your net earnings: 12.4% Social Security up to the 2026 wage base of $184,500, and 2.9% Medicare on everything. You deduct half of it when you work out your income tax.
This is on top of federal and state income tax. Set aside about a quarter of it with each quarterly estimated payment.
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Start freeHow it works
Net earnings = profit × 92.35% · Tax = 12.4% of net earnings up to $184,500 + 2.9% of all net earnings
Above $200,000 (single filers) an extra 0.9% Medicare tax applies. You can deduct half of the self-employment tax when working out your income tax. See the IRS page on self-employment tax.
Worked example
A net profit of $60,000 gives net earnings of $55,410.00. Self-employment tax is $8,477.73, and $4,238.87 of it is deductible.
An estimate, not tax advice. Federal and state income tax are on top.
Questions
Who pays self-employment tax?
Anyone with net earnings from self-employment of $400 or more, including sole proprietors, single-member LLCs and 1099 contractors.
Do I need to pay quarterly?
Usually yes, if you expect to owe $1,000 or more for the year. Estimated payments are due in April, June, September and January.
How much should I set aside for taxes?
Many contractors set aside 25% to 30% of profit to cover self-employment and income tax. Your tax preparer can give you a number for your state.
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