Complete Guide to Self-Employment Tax 2026
Everything you need to know about self-employment tax in 2026 — rates, calculation, deductions, quarterly payments, and state-specific rules for all 50 states.
What Is Self-Employment Tax?
Self-employment tax is the Social Security and Medicare taxes paid by individuals who work for themselves. Unlike W-2 employees whose employers withhold and match these taxes, self-employed individuals pay both the employee and employer portions — totaling 15.3% on net earnings.
2026 Self-Employment Tax Rate
The self-employment tax rate for 2026 is 15.3%, consisting of 12.4% for Social Security (on the first $184,500 of combined wages and net earnings) and 2.9% for Medicare (on all net earnings). An additional 0.9% Medicare surtax applies to earnings above $200,000 for single filers or $250,000 for married filing jointly.
How to Calculate Self-Employment Tax
First, calculate your net profit (gross self-employment income minus business expenses). Then multiply by 92.35% to get your net earnings subject to SE tax. Apply 15.3% to the result. You can deduct 50% of the SE tax when calculating your adjusted gross income. Use our free calculator to compute your exact liability.
Self-Employment Tax Deductions
Key deductions include the home office deduction ($5/sq ft up to $1,500), health insurance premiums (100% deductible), retirement plan contributions (SEP IRA up to $69,000, Solo 401k up to $69,500), business equipment via Section 179, and vehicle expenses at $0.70 per mile. The Qualified Business Income (QBI) deduction allows an additional 20% deduction on qualified business income.
Quarterly Estimated Tax Payments
Self-employed individuals must make quarterly estimated tax payments if they expect to owe $1,000 or more. Deadlines for 2026: April 15, June 16, September 15, and January 15, 2027. Use the safe harbor rule: pay 100% of last year's tax (110% if AGI exceeds $150,000) to automatically avoid penalties.
State Self-Employment Tax Rates
Federal self-employment tax applies regardless of which state you live in. However, state income tax on your net profit varies dramatically. Nine states (AK, FL, NV, NH, SD, TN, TX, WA, WY) have no state income tax. California has the highest top rate at 13.3%. Use our state comparison tool to find your total tax burden in any state.
Frequently Asked Questions
Who has to pay self-employment tax?
Is self-employment tax in addition to income tax?
How do I pay self-employment tax?
Sources
- IRS Revenue Procedure 2025-32 — 2026 inflation adjustments — tax brackets, standard deduction, QBI thresholds.
- IRS Schedule SE instructions — Self-employment tax: the 92.35% adjustment, the Social Security wage base, the Medicare surtax.
- IRS Form 1040-ES — Estimated tax deadlines and the safe-harbour rules used for the quarterly schedule.
- IRS Publication 334 — Tax guide for small business — deductible expenses and net profit.
- IRS Social Security wage base — The $184,500 Social Security cap applied for 2026.
How these numbers are produced
Calculations follow the order of operations on the IRS forms themselves: net profit, the 92.35% adjustment, self-employment tax, the 50% deduction against AGI, the standard deduction, the §199A QBI deduction with its phase-out, then the federal brackets. State tax is computed separately on state AGI less that state's own standard deduction, because no state allows the federal QBI deduction and almost none allow the federal standard deduction.
What it does not cover. The calculators model a single filer or a married couple filing jointly with self-employment income as the main source. They do not model local income taxes, W-2 wages held alongside freelance work, itemized deductions, the alternative minimum tax, or credits. Where a local income tax exists, it is described on that state's page.
Not advice. SelfTaxCalc produces estimates, not tax advice. No one here is a CPA, an enrolled agent or a tax attorney, and nothing on this site creates a professional relationship. Estimates are a starting point for planning and for a conversation with a professional — they are not a substitute for one.