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Self-employed · Tax year 2026

US 1099 Self-Employment Tax Calculator 2026

Enter your Schedule C net profit; we compute Internal Revenue Code §1401 — the self-employment tax statute. Social Security portion 12.4 % capped at the OASDI wage base; Medicare portion 2.9 % uncapped. Applied to 92.35 % of net profit per §1402(a)(12). exactly, no approximation. Separate from your federal income tax; this is the payroll-tax equivalent for 1099 earners.

The 2026 SE-tax math, in five lines

  • SE tax = 15.3% on the first $184,500 of net SE earnings (after the 0.9235 multiplier), then 2.9% Medicare-only on everything above.
  • Net means Schedule C line 31 (gross 1099 minus business expenses) — not the gross 1099 amount.
  • Under $400 of net SE earnings, no SE tax is owed (IRC §1402(b)).
  • Half of SE tax is deductible above-the-line on Schedule 1 (IRC §164(f)). The calculator shows this separately.
  • SE tax is not income tax. You owe both — quarterly estimated payments cover both per IRC §6654.

The 2026 numbers that matter

12.4%
Social Security rate Capped at $184,500 net earnings
2.9%
Medicare rate Uncapped
15.3%
Combined SE tax rate on 92.35 % of profit

Live calculator

Your 2026 SE tax

Enter your net profit from Schedule C, line 31. We apply IRC §1401 directly — 12.4% OASDI (capped) + 2.9% Medicare (uncapped).

This is after business expenses. Do not enter gross 1099 income.

SS portion caps at $184,500 net earnings in 2026 (IRS Pub 15). Medicare keeps going.

Enter your figures above to see your estimate.

How §1401 actually works

  1. Start with net profit from Schedule C line 31 (gross 1099 income minus business expenses). This is NOT gross 1099s.
  2. Multiply by 0.9235 to get net SE earnings. §1402(a)(12) — this adjustment approximates the employer-side payroll tax you're effectively responsible for.
  3. If net earnings are under $400, stop. §1402(b) de-minimis exempts you.
  4. Social Security portion: min(netEarnings, $184,500) × 0.124
  5. Medicare portion: netEarnings × 0.029 — uncapped.
  6. Sum = SE tax. Goes on Form 1040 Schedule 2, line 4. Half of this is deductible above-the-line on Schedule 1 (§164(f)).

Note on Additional Medicare (0.9 % above $200k single / $250k joint, §1401(b)(2)): the calculator above does not apply it yet. If your combined wages + SE exceed those thresholds, add 0.9 % on the excess manually for now.

Four scenarios, walked through with numbers

Baseline

$60,000 Schedule C profit, single filer

  1. $60,000 × 0.9235 = $55,410 net SE earnings.
  2. Below $184,500 wage base, so the full 15.3% applies.
  3. $55,410 × 0.153 = $8,477.73 SE tax.
  4. Half-SE deduction: $4,238.87 above-the-line on Schedule 1 (worth ~$932 at the 22% bracket).
  5. Quarter set-aside: ~$2,119/qtr just for the SE portion.

Above the wage base

$220,000 Schedule C profit, single filer

  1. $220,000 × 0.9235 = $203,170 net SE earnings.
  2. Social Security portion caps at $184,500 × 0.124 = $22,878.
  3. Medicare portion uncapped: $203,170 × 0.029 = $5,891.93.
  4. Additional Medicare 0.9% on net SE above $200,000 (§1401(b)(2)): $3,170 × 0.009 = $28.53.
  5. Total SE-side liability: $28,798.46. The calculator's headline does not yet add the Additional Medicare line — pencil it in manually.

Mixed income

$80,000 W-2 + $40,000 1099 net profit

  1. $40,000 × 0.9235 = $36,940 net SE earnings.
  2. W-2 already covered $80,000 of the $184,500 Social Security wage base. $104,500 of headroom remains.
  3. SE Social Security portion: min($36,940, $104,500) × 0.124 = $36,940 × 0.124 = $4,580.56.
  4. SE Medicare portion: $36,940 × 0.029 = $1,071.26.
  5. SE tax: $5,651.82. Schedule SE Part I walks this through with the wage-base offset.

Side hustle near the floor

$5,000 Etsy net profit

  1. $5,000 × 0.9235 = $4,617.50 net SE earnings.
  2. Above the $400 §1402(b) de-minimis floor, so SE tax applies.
  3. $4,617.50 × 0.153 = $706.48 SE tax.
  4. Federal income tax is separate. After the half-SE deduction (~$353), at the 12% marginal bracket, this is roughly $560 more on top of SE — but your actual rate depends on your other income, and the QBI deduction (IRC §199A) may reduce it further if your business qualifies.
  5. Below $400 of net SE earnings, file Schedule C only (no Schedule SE). At this level you are over the floor.

Type these net-profit values into the calculator above and the URL will encode the scenario — useful for sharing the math with a CPA.

Frequently asked questions

Do I owe self-employment tax if my 1099 income is under $400?

No. IRC §1402(b) exempts net self-employment earnings under $400. Note: this is net earnings (after the 0.9235 multiplier), not gross 1099 receipts. So roughly $433 of net profit before the multiplier still falls under the threshold. You may still owe federal income tax on the income — only the SE tax is waived.

Is Social Security really capped at $184,500 for 2026?

Yes. The 2026 OASDI wage base is $184,500 per SSA cost-of-living publication. Net SE earnings above that amount are subject only to the 2.9% Medicare portion (and the 0.9% Additional Medicare above $200k single / $250k joint per IRC §1401(b)(2)). The wage base ratchets up most years with national wage growth.

Can I deduct half of my self-employment tax?

Yes. IRC §164(f) lets you deduct one-half of SE tax above-the-line on Schedule 1, line 15. This reduces your AGI (not your SE tax itself). It approximates the employer-side payroll tax that an employee would not pay out-of-pocket. The calculator above shows the half-deduction value separately so you can pencil it into your federal-income-tax estimate.

What is the difference between self-employment tax and federal income tax?

They are two separate liabilities on the same income. SE tax (IRC §1401) is your Social Security + Medicare contribution as a self-employed person — the equivalent of FICA payroll tax that an employer would otherwise split with you. Federal income tax (IRC §1) is computed under the progressive bracket system on your total taxable income. You owe both. Quarterly estimated payments per IRC §6654 cover both at once.

Do I owe SE tax on rental income or investment income?

Generally, no. Rental real-estate income is excluded from SE earnings under IRC §1402(a)(1), unless you are a real-estate dealer. Dividend, interest, and capital-gain income are also excluded. SE tax applies to active trade-or-business income — Schedule C profits, partnership distributive shares of trade-or-business income, and similar.

How does SE tax work if I have both W-2 wages and 1099 income?

Your W-2 employer already withheld 6.2% Social Security on your wages, up to the $184,500 wage base. Your SE Social Security portion only fills the remaining gap up to that cap. Schedule SE walks through the math step-by-step. Medicare (2.9% on SE side, 1.45% × 2 sides on W-2 side) is uncapped, so it stacks normally.

What is the Additional Medicare Tax of 0.9%?

A surtax under IRC §1401(b)(2) on combined wages + net SE earnings above $200,000 single / $250,000 joint / $125,000 married-separate. It does not phase in — once you cross the threshold, the next dollar of SE income is taxed at 3.8% (2.9% regular Medicare + 0.9% Additional). The calculator above does not yet apply it; if you are above the threshold, add 0.9% of the excess manually.

Do I need to file Schedule SE if my SE tax is $0?

If your net SE earnings are under $400, you generally do not file Schedule SE — but you still report the underlying income on Schedule C. If your SE tax computation rounds to $0 for other reasons (e.g. a loss), check the latest Schedule SE instructions — there are edge cases (church employees, optional methods) that require filing anyway.

Why are quarterly estimated payments required because of SE tax?

Because no employer is withholding SS/Medicare on your behalf. IRC §6654 imposes an underpayment penalty if you do not pay-as-you-go via quarterly estimates that meet either 90% of current-year total tax (income + SE) or 100%/110% of prior-year tax. Use Form 1040-ES to schedule four payments — Apr 15, Jun 15, Sep 15, Jan 15.

Does electing S-Corp status reduce my SE tax?

It can — but only on the portion you take as distributions rather than salary. As an S-Corp owner-employee you must pay yourself a "reasonable salary" (W-2, with FICA withheld) for the work you actually do. Distributions above that salary are not subject to SE tax. The IRS audits the reasonable-salary determination heavily, and the structure adds bookkeeping cost. Generally only worth considering above ~$80–100k of net SE earnings, and only after talking to a CPA. Not advice — see disclaimer.

Where does SE tax actually go on my Form 1040?

SE tax flows from Schedule SE → Schedule 2, Line 4 → Form 1040, Line 23. The half-SE deduction flows from Schedule SE Part I Line 13 → Schedule 1, Line 15 → Form 1040, Line 10. The calculator above gives you both numbers so you can fill in the matching lines. See the latest Schedule SE PDF (irs.gov) for the line numbers.

Are 1099-K payments from PayPal, Stripe, or Etsy subject to SE tax?

If they represent earnings from a trade or business (selling goods or services for profit), yes — same as 1099-NEC income. If they represent personal transactions wrongly issued a 1099-K (selling used items at a loss, splitting a dinner bill via Venmo Goods & Services), they are not SE income, but you must still reconcile the form with the IRS to avoid a mismatch notice. See the latest IRS Form 1099-K guidance.

Six mistakes that cost real money

  • Paying SE tax on gross 1099s instead of Schedule C net profit

    The single most expensive mistake. SE tax applies to net profit (gross income minus business expenses), not the gross dollar figure on your 1099-NEC. Track every deductible expense — software, mileage, home office, phone — before computing SE tax.

  • Forgetting the 0.9235 multiplier

    IRC §1402(a)(12) lets you reduce net earnings by 7.65% before applying the 15.3% rate. Skipping this overpays you by ~1.2 percentage points of effective rate. The calculator handles it automatically; if you are doing it on paper, multiply by 0.9235 first.

  • Treating SE tax as income tax (or vice versa)

    They are separate. SE tax is your FICA-equivalent. Federal income tax is your bracket-based liability. Quarterly estimates need to cover both. Many first-year freelancers underpay by an entire SE-tax block because they only budgeted for income tax.

  • Missing the half-SE-tax deduction

    IRC §164(f) is an above-the-line deduction worth half your SE tax. On a $10,000 SE-tax bill that is $5,000 off your AGI — about $1,100 of saved federal income tax at the 22% bracket, or $1,200 at 24% (add your state's marginal rate on top, since the deduction reduces state-taxable income too in most states). Many self-prepared returns skip Schedule 1 line 15 entirely.

  • Crossing the Additional Medicare threshold without adjusting

    Above $200k single / $250k joint of combined wages + SE earnings, IRC §1401(b)(2) adds 0.9%. This calculator does not yet apply it; budget the surtax manually if your total earned income is in that zone.

  • Skipping quarterly estimates because "I will just pay at filing"

    IRC §6654 imposes a daily-interest penalty (around 7–8% APR in 2026) on any underpayment. The penalty is small per quarter but grows linearly with the missed amount and the time elapsed. Cheaper to pay quarterly even if your numbers are rough.

Sources

Last reviewed
Tax year
2026
Version
us.2026.v1

Author: Marcus Hale · United States tax analyst · Methodology

Data licensed under CC-BY-4.0. Cite as: TaxValio — taxvalio.com/us-1099-self-employment-tax/

Estimation tool only — not professional tax advice. Consult a qualified CPA or Enrolled Agent for your specific situation.