cpa-tax
Self-Employment Tax Calculator (2026) — SE Tax, FICA, Schedule SE
If you're self-employed and asking "how much is my self-employment tax going to be?" — this calculator runs Schedule SE math on your numbers in real time. It computes the 12.4% Social Security portion (up to the 2026 wage base), the 2.9% Medicare portion (uncapped), the 0.9% Additional Medicare surcharge over filing-status thresholds, and the dollar value of the 50% SE-tax deduction at your marginal federal rate. Educational estimator — tax law changes annually, and your actual liability depends on details only a CPA can fully assess. Verify before filing.
Educational estimate using current-year projections — not tax advice. Verify with a CPA against your full return before filing or acting on this output.
How it works
Methodology
Inputs
- Net self-employment income
- Business profit after deductible expenses. Schedule C line 31 for sole props / single-member LLCs; pass-through profit from partnership K-1 box 14 or your S-corp K-1 (note: S-corp distributions are not SE-taxed — only the W-2 wage portion is).
- Filing status
- Single / MFJ / MFS / HOH. Drives the Additional Medicare threshold ($200K single & HOH, $250K MFJ, $125K MFS — set by IRC §1411 / Form 8959 and not indexed for inflation).
- Other W-2 wages
- Any W-2 wages you've also earned this year (yours or, if MFJ, both spouses). W-2 employers withhold Social Security up to the SS wage base ($184,500, SSA-announced for 2026) — SE tax only owes the SS portion on the remaining headroom.
- Marginal federal income tax rate
- Your top federal bracket — 12%, 22%, 24%, 32%, 35%, or 37%. Determines the dollar value of the 50% SE-tax deduction (which reduces income tax, not SE tax itself).
Formula
SE basis = Net SE income × 92.35% Social Security portion = 12.4% × min(SE basis, SS wage base − other W-2 wages) Medicare portion = 2.9% × SE basis (no cap) Additional Medicare = 0.9% × (SE basis + W-2 wages − filing-status threshold), pro-rated to SE share Total SE tax = SS + Medicare + Additional Medicare 50% SE-tax deduction = ½ × Total SE tax (above-the-line on Schedule 1) Federal tax saved = Deductible portion × Marginal federal rate Net SE cost = Total SE tax − Federal tax saved
Assumptions
- 2026 SS wage base is $184,500, per the SSA's official announcement (Oct 2025) — verify against IRS Schedule SE instructions before filing.
- Additional Medicare thresholds ($200K single/HOH, $250K MFJ, $125K MFS) are set by statute (IRC §1411) and not indexed for inflation, so they apply as-is.
- Marginal federal income tax rate is YOUR top bracket on total taxable income — this calculator does not recompute the full federal liability. Use the Quarterly Estimated Tax Calculator if you want the full federal + SE + state quarterly picture.
- Does not model state income tax, business deductions beyond the net-SE-income input, or self-employed retirement plan deductions (SEP-IRA, Solo 401(k)) which can substantially reduce taxable income.
- Not an offer, not approval, not tax advice. Consult a CPA before filing — tax law changes annually.
Worked examples
$50K net SE — solo Schedule C filer at 22% marginal
- Net SE income
- $50,000
- Filing status
- Single
- Other W-2 wages
- $0
- Marginal rate
- 22%
SE tax ≈ $7,065 (SS $5,726 + Medicare $1,339). 50% deduction saves ≈ $777 in federal income tax → net cost ≈ $6,288. Below the typical S-corp election break-even — stay as default LLC / sole prop. Quarterly estimated payments still required.
$100K net SE — growing LLC at 24% marginal
- Net SE income
- $100,000
- Filing status
- Single
- Other W-2 wages
- $0
- Marginal rate
- 24%
SE tax ≈ $14,130 (SS $11,451 + Medicare $2,678 — still under the SS wage base). 50% deduction saves ≈ $1,696 → net cost ≈ $12,434. Quarterly payments required. Approaching the S-corp election break-even — run our S-Corp vs LLC calculator to see if it pencils.
$200K net SE — established consultant at 32% marginal
- Net SE income
- $200,000
- Filing status
- Single
- Other W-2 wages
- $0
- Marginal rate
- 32%
SE tax ≈ $28,234 (SS CAPPED at $22,878 on $184,500 wage base + Medicare $5,356 on full SE basis). 50% deduction saves ≈ $4,517 → net cost ≈ $23,717. S-corp election analysis is strongly indicated at this income level — the SE-tax savings on the distribution portion typically exceeds the ~$2,500/year overhead by a wide margin.
Frequently asked
Questions readers ask
What is self-employment tax? +
Self-employment (SE) tax is the Social Security + Medicare contribution self-employed people pay on their net business earnings. W-2 employees split this 50/50 with their employer (7.65% each); self-employed people pay both halves — 15.3% total — on 92.35% of their net SE income. It's reported on Schedule SE and added to federal income tax on Form 1040.
How is SE tax different from income tax? +
SE tax funds Social Security and Medicare and is a flat 15.3% (on 92.35% of net SE earnings, up to the SS wage base — Medicare is uncapped). Federal income tax is on your total taxable income across progressive brackets (10% / 12% / 22% / 24% / 32% / 35% / 37%) after deductions. Both apply — SE tax is on top of income tax, not instead of it.
When do I have to pay SE tax? +
SE tax is computed annually on Schedule SE when you file your federal return. But the IRS expects payment throughout the year via quarterly estimated tax payments (April 15, June 15, September 15, January 15 of the following year). Underpayment triggers penalties unless you hit a safe harbor (100% of prior-year liability, 110% if AGI > $150K, or 90% of current-year liability).
How is the 50% SE-tax deduction applied? +
Half of your total SE tax is deductible above-the-line (on Form 1040 Schedule 1) as an adjustment to gross income. It reduces your federal taxable income but does NOT reduce the SE tax itself. The deduction's actual dollar value depends on your marginal federal income tax rate — at 22% marginal, half of $14,000 SE tax = $7,000 deduction × 22% = $1,540 in federal tax saved.
What happens if I have W-2 wages too? +
Social Security has a wage base ($184,500, SSA-announced for 2026) — once your wages hit it, no more SS is owed. W-2 employers withhold SS on your wages first, so if your W-2 wages already exhaust the cap, SE tax owes ZERO Social Security on your self-employment side. Medicare and Additional Medicare still apply (those have no cap). This calculator factors that in via the "Other W-2 wages" input.
Does S-corp election reduce SE tax? +
Yes — that's the primary reason people elect S-corp status above ~$80K of net profit. As an S-corp, you pay yourself a reasonable W-2 salary (subject to payroll tax = same as SE tax economically), and the remaining profit flows through as a distribution exempt from SE/payroll tax. The savings have to overcome ~$2,500/year in payroll-setup + separate-tax-return overhead, so it's not a winner at lower profit levels. Our S-Corp vs LLC calculator runs that math.
What are the 2026 SE tax rates? +
Total SE tax rate is 15.3% on 92.35% of net SE earnings: 12.4% Social Security (up to the SSA-announced 2026 SS wage base of $184,500) + 2.9% Medicare (no cap) + 0.9% Additional Medicare on the portion over filing-status thresholds ($200K single/HOH, $250K MFJ, $125K MFS). The 92.35% multiplier accounts for the employer-side SE-tax deduction; without it you'd be paying SE tax on income that's mathematically reduced by SE tax itself.
Do I still owe SE tax if I lost money this year? +
No. Schedule SE only applies when net SE earnings are positive ($400+ to be required to file SE specifically). A net loss means no SE tax. But the loss may also let you reduce other income (NOL rules apply) — work with a CPA to handle loss years correctly, especially if you have multiple sources of income.
This tool is for educational purposes only and is not an offer, approval, financial, legal, or tax advice. Tax outputs depend on your full return — consult a CPA before filing. ClearValue Lending is a funding platform.
https://clearvaluelending.com/tools/self-employment-tax-calculator