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How SE tax is calculated
- Multiply net profit by 92.35%. $60,000 × 0.9235 = $55,410.00.
- Social Security: 12.4% of that, up to the 2026 wage base of $184,500 minus any W-2 wages = $6,870.84.
- Medicare: 2.9% of all of it = $1,606.89.
- Additional Medicare: 0.9% above $200,000 (single), $250,000 (joint) or $125,000 (separate), counting wages.
No SE tax is due if net earnings are under $400.
SE tax by profit (single, no W-2 wages)
| Net profit | SE tax | Deductible half | Share of profit |
|---|---|---|---|
| $20,000 | $2,826 | $1,413 | 14.1% |
| $40,000 | $5,652 | $2,826 | 14.1% |
| $60,000 | $8,478 | $4,239 | 14.1% |
| $80,000 | $11,304 | $5,652 | 14.1% |
| $100,000 | $14,130 | $7,065 | 14.1% |
| $150,000 | $21,194 | $10,597 | 14.1% |
| $200,000 | $28,234 | $14,117 | 14.1% |
| $250,000 | $29,851 | $14,787 | 11.9% |
Above the wage base only the 2.9% Medicare part continues (plus 0.9% Additional Medicare at high incomes), so the share falls.
SE tax is not your whole bill
Income tax is on top. Use the 1099 tax calculator for the combined total and quarterly estimates.
Federal estimates using 2026 IRS figures and the standard deduction. They leave out credits, state tax and other deductions, so treat them as a planning number, not a tax return.
Sources and assumptions
Related
Frequently asked questions
What is the self-employment tax rate for 2026?
15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of net profit, with Social Security stopping at $184,500 of combined earnings.
How much self-employment tax on $60,000?
About $8,478.
Can I deduct self-employment tax?
You deduct half of it (the employer-equivalent part) when calculating adjusted gross income.
Do I pay SE tax if I made under $400?
No. SE tax applies only when net earnings from self-employment are $400 or more.