Self-Employment Tax Calculator
Calculate your 2026 self-employment tax (SE tax), the above-the-line deduction, federal income tax, and quarterly estimated payment.
How Self-Employment Tax Works
SE tax covers Social Security (12.4%) and Medicare (2.9%) — both the employee and employer portions. It applies to 92.35% of net SE income (the IRS reduces it by 7.65% to approximate the employer-side deduction employees receive). The SS portion applies to the first $176,100 in 2026; Medicare has no cap.
The SE Tax Deduction
You can deduct half of your SE tax from gross income on Schedule 1 before calculating income tax. This reduces your AGI and thus your income tax. On $80,000 of SE income, the SE tax is approximately $11,304 and the deduction is $5,652 — saving roughly $1,243 in income tax at the 22% bracket.
Quarterly Estimated Taxes
Self-employed individuals must make quarterly estimated tax payments to avoid underpayment penalties. Due dates: April 15 (Q1), June 15 (Q2), September 15 (Q3), and January 15 (Q4). Pay at least 90% of current year tax or 100% of prior year tax (110% if prior year AGI exceeded $150,000) to avoid penalties.