Calculate SE tax, federal income tax, state tax, and quarterly estimated payments for 2026.
Self-employment tax (15.3%) = 12.4% SS (up to $184,500 wage base) + 2.9% Medicare. QBI deduction simplified at 20%. State income tax rates are simplified. This is for estimation only — consult a tax professional.
Self-employment tax is how a sole proprietor pays the Social Security and Medicare taxes that a W-2 employer would otherwise split with you. The combined rate is 15.3% — 12.4% for Social Security up to the 2026 wage base of $184,500, plus 2.9% for Medicare with no cap. It applies to 92.35% of your net profit, because the IRS lets you skip the employer-equivalent half of the base. Half of your SE tax is then deductible, and the 20% QBI deduction further lowers income tax on top.
A $50,000 net profit becomes a $46,175 SE tax base (× 92.35%) and a $7,065 SE tax (× 15.3%). Half of that — $3,532 — is deductible on your income tax return.
Diego, a freelance photographer in Austin, has $68,000 of gross receipts and $8,000 of business expenses on Schedule C, filing single.
Self-employment tax in 2026 is 15.3% on net earnings up to $184,500 (Social Security) plus 2.9% on all earnings (Medicare). Enter your net profit to see your exact tax.
FreeToolHub Self-Employment Tax Calculator is a free browser-based tool that calculates SE tax on freelance income, no signup, no upload.
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Self-employment tax is the Social Security and Medicare tax paid by self-employed individuals. It is 15.3% of net self-employment earnings: 12.4% for Social Security (capped at $184,500 in wages in 2026) and 2.9% for Medicare (no income cap). An additional 0.9% applies to single earners above $200,000 or married filing jointly above $250,000.
You must pay SE tax if you earn $400 or more in net profit from self-employment in a year. This includes freelancers, contractors, gig workers, sole proprietors, and small business owners. The tax is required even if you already pay FICA on a W-2 job.
SE tax is calculated on 92.35% of your net profit from Schedule C. The formula is: (net profit) × 92.35% × 15.3%. You can deduct half of SE tax (7.65%) from your adjusted gross income. Income tax is then calculated on the resulting taxable income after the QBI deduction (up to 20% of qualified business income).
A freelancer with $65,000 net profit in 2026: • Net earnings: $65,000 × 92.35% = $60,028 • SE tax: $60,028 × 15.3% = $9,184 • Deduction for half SE tax: $4,592 • QBI deduction (20% of QBI): up to $13,000 • Federal income tax (after deductions): ~$5,400 • Total tax burden: ~$14,584 • Effective rate after QBI deduction: ~22.4%
Yes, if you earn $400 or more in net profit from self-employment in a year. This includes freelancers, contractors, gig workers, and sole proprietors. SE tax covers Social Security and Medicare — the same as FICA, but the self-employed person pays both the employee and employer halves.
The self-employment tax rate is 15.3%: 12.4% for Social Security (on earnings up to $184,500 in 2026) and 2.9% for Medicare (on all earnings, plus 0.9% for high earners above $200,000 single / $250,000 married). You pay this on 92.35% of your net profit.
Quarterly tax payments are due: April 15, June 15, September 15, and January 15. If you expect to owe more than $1,000 in tax for the year, you must make estimated payments using Form 1040-ES. Missing deadlines triggers penalties of approximately 8% annualized.
You can deduct business expenses: home office ($5/sq ft up to 300 sq ft), software subscriptions, equipment, mileage (67¢/mile in 2026), internet and phone, marketing, and professional services. Health insurance premiums (100% deductible above-the-line) and retirement contributions (SEP-IRA or Solo 401(k) up to $69,000 in 2026) also reduce taxable income.
Estimate your annual taxable income, apply tax rates (including the 15.3% SE tax), and divide by four. You can also use the annualized income method to adjust quarterly payments if your income fluctuates throughout the year.
Overpayments are applied to the next quarter or refunded when you file your annual tax return (Form 1040). You can file Form 1040-ES to reduce your next quarterly payment.
Yes. You can deduct 50% of your SE tax (7.65%) as an adjustment to income on Schedule 1, Line 15. This reduces your AGI before calculating federal and state income tax.
The Qualified Business Income deduction allows you to deduct up to 20% of your qualified business income from taxable income. It reduces income tax, not SE tax, but it helps lower your total tax burden.
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