Estimate your 2026 federal self-employment tax. Models the $184,500 Social Security wage base, 15.3% SE tax rate, 0.9% Additional Medicare Tax, the 92.35% earnings adjustment, and the half-of-SE-tax federal deduction. Results update instantly.
Planning estimate only — not tax advice. See Disclaimer.
What Self-Employment Tax Actually Covers
Self-employment tax is the self-employed person's version of FICA. An employee pays half of Social Security and Medicare tax through payroll withholding (7.65% of wages). The employer pays the matching half. A self-employed person is both the employee and the employer, so they pay the full 15.3% directly through Schedule SE.
The math has three pieces. First, net business profit is multiplied by 92.35% to compute net earnings from self-employment. Second, the 12.4% Social Security portion applies up to the 2026 wage base of $184,500. Third, the 2.9% Medicare portion applies to all SE earnings without a cap. High earners also owe an extra 0.9% Additional Medicare Tax on SE earnings above $200,000 (single), $250,000 (married filing jointly), or $125,000 (married filing separately). These thresholds are statutory and do not adjust for inflation.
For NJ business owners, SE tax is purely federal — New Jersey does not have a separate state SE tax. The half-of-SE-tax deduction under IRC section 164(f) reduces federal taxable income but does not reduce NJ Gross Income Tax. The federal benefit is real but smaller than many calculators suggest because the deduction's value depends on your federal marginal bracket.
Net profit from your business before SE tax. Schedule C line 31, partnership SE earnings on K-1 box 14 code A, or LLC ordinary income for tax-as-partnership members.
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If you also have a W-2 job, enter the Social Security wages already taxed there (Box 3 of your W-2). The Social Security portion of SE tax stops once total earnings hit $184,500 across both jobs.
Estimate only — not a tax position.
The figure below is computed from the values you entered, simplified assumptions, and the federal SE tax figures in effect for tax year 2026 as of 2026-05-07. It is not tax advice and does not create a CPA-client relationship. It does not capture facts specific to your return — partnership SE allocations, optional Section 1402(l) methods, multiple-business aggregations, or non-standard income types. Do not act on this number, file based on it, or include it in a tax position without a licensed tax professional reviewing your full situation. ProAxis Tax & Accounting Services makes no warranty as to accuracy and accepts no liability for reliance on this output. See full Disclaimer and Terms of Service.
Estimated 2026 Self-Employment Tax
Net Earnings from SE (92.35%)
$0
Profit × 0.9235 per IRC §1402(a)(12)
Half-of-SE-Tax Deduction
$0
Above-line federal deduction per IRC §164(f)
Social Security (12.4%)
$0
Medicare (2.9%)
$0
Additional Medicare (0.9%)
$0
Estimated Total 2026 SE Tax
$0
Estimate as of 2026-05-07
Reported on Schedule SE; half is deductible above-the-line.
Important: This Is a Directional Estimate
The calculator uses the 2026 Social Security wage base of $184,500 announced by the Social Security Administration in October 2025 (verified against the SSA Contribution and Benefit Base page at ssa.gov).
SE tax rates are statutory under IRC section 1401: 12.4% Social Security (OASDI) under §1401(a) and 2.9% Medicare under §1401(b)(1). The 92.35% earnings adjustment is statutory under §1402(a)(12).
Additional Medicare Tax of 0.9% under IRC section 1401(b)(2) applies on SE earnings above $200,000 (single and HOH), $250,000 (MFJ), or $125,000 (MFS). These thresholds are statutory and not inflation-adjusted.
The half-of-SE-tax deduction under IRC section 164(f) is taken above-the-line on Form 1040 Schedule 1. It reduces federal taxable income but does not reduce the SE tax owed and does not reduce NJ Gross Income Tax.
The calculator does not model partnership SE earnings allocations under IRC section 1402(a), the optional methods under IRC section 1402(l), Section 1402(a)(8) church employee exemptions, foreign earned income, conservation reserve program payments, or interaction with the QBI deduction under section 199A.
S-Corp shareholder distributions are not subject to SE tax and are not modeled here. Only Schedule C / K-1 SE earnings flow into this calculator. For S-Corp savings analysis use the S-Corp Savings Calculator.
If you have W-2 wages from another job that already used part of the Social Security wage base, enter those wages so the SS portion does not double-count. The 2.9% Medicare portion has no cap and always applies to all SE earnings.
For a precise figure tailored to your entity structure and full personal return, schedule a free consultation with ProAxis. The full SE tax analysis is part of every Schedule C and pass-through engagement.
Worked Example 1 — Schedule C Profit Below the SS Wage Base
A NJ freelance consultant filing single. Schedule C net profit of $80,000. No other W-2 job.
Net SE earnings: $80,000 × 92.35% = $73,880.
Social Security portion: $73,880 × 12.4% = $9,161 (well below the $184,500 wage base, so the cap does not bind).
Medicare portion: $73,880 × 2.9% = $2,143.
Additional Medicare Tax: $73,880 is below the $200,000 single threshold, so no extra 0.9%.
Total SE tax: $11,304. Half ($5,652) is deductible above-the-line on Form 1040 Schedule 1. At a 22% federal marginal bracket the deduction reduces federal income tax by approximately $1,243. NJ Gross Income Tax is unchanged.
Worked Example 2 — Profit Above the SS Wage Base
A NJ-based real estate attorney running a solo Schedule C practice. Net profit of $250,000. Filing married jointly. No other W-2 job.
Net SE earnings: $250,000 × 92.35% = $230,875.
Social Security portion: Capped at the 2026 wage base. SS-taxable amount is the lesser of $230,875 or $184,500 = $184,500. SS tax = $184,500 × 12.4% = $22,878.
Medicare portion: $230,875 × 2.9% = $6,695 (Medicare has no cap).
Additional Medicare Tax: $230,875 is below the $250,000 MFJ threshold, so no 0.9% extra applies.
Total SE tax: $29,573. Half ($14,787) is deductible above-the-line. At a 24% federal marginal bracket the deduction reduces federal income tax by approximately $3,549. The same attorney electing S-Corp status and paying themselves a $100,000 reasonable salary would reduce SE/FICA exposure significantly — see the S-Corp Savings Calculator.
Worked Example 3 — Side Business with Day-Job W-2 Wages
A NJ engineer earning $150,000 W-2 from a day job (so $150,000 of Social Security wages already taxed at the W-2 level). They also run a Schedule C side business with $60,000 of net profit. Filing married jointly.
Net SE earnings: $60,000 × 92.35% = $55,410.
SS wage base remaining: $184,500 − $150,000 = $34,500. The 12.4% Social Security portion applies only to the lesser of $55,410 or $34,500 = $34,500. SS tax = $34,500 × 12.4% = $4,278.
Medicare portion: $55,410 × 2.9% = $1,607 (full SE earnings; Medicare has no cap and is independent of W-2).
Additional Medicare Tax: Combined W-2 wages plus SE earnings = $150,000 + $55,410 = $205,410. Below the $250,000 MFJ threshold. No 0.9% extra applies. (Note: Additional Medicare Tax is separately reconciled on Form 8959 against ALL wage and SE earnings; the calculator approximates that here.)
Total SE tax: $5,885. The W-2 day job dramatically reduced the SS portion of SE tax. Half ($2,943) is deductible above-the-line. This pattern is common for owners with a stable salaried role and a profitable side business.
After You Run the Calculator
The output is a planning starting point, not a return-ready figure. Here is how to use the result:
If your SE tax is $3,000+ per year the S-Corp election is worth investigating. Run the S-Corp Savings Calculator to see the potential savings net of payroll setup costs.
If you also have a W-2 job enter the W-2 SS wages so the SS portion of SE tax does not double-count earnings already taxed at the W-2 level. The Medicare portion still applies to all SE earnings.
If your combined W-2 + SE earnings approach the Additional Medicare Tax threshold ($200K single/HOH, $250K MFJ, $125K MFS) the 0.9% extra hits on the excess. This is reconciled on Form 8959 with your personal return.
The SE tax deduction reduces federal taxable income but not NJ Gross Income Tax — NJ does not allow the half-of-SE-tax adjustment. ProAxis runs both calculations together to show the layered effect.
Quarterly estimated payments are usually required if you owe more than $1,000 of federal tax (including SE tax) for the year. Use the Federal Estimated Tax Calculator to plan the four quarterly payments.
Whatever the result, document the figures you used. SE tax interacts with retirement plan contributions (SEP-IRA and Solo 401(k) limits depend on net SE earnings after the half-of-SE-tax deduction), the QBI deduction, the NJ BAIT election (for partnerships and multi-member LLCs), and the federal S-Corp election. A CPA's job is to coordinate those moves.
How to Use This Calculator
Select your filing status. Single, MFJ, MFS, or HOH. This sets the Additional Medicare Tax threshold.
Enter your net SE income. Schedule C net profit (line 31), partnership ordinary income on K-1 box 14 code A, or multi-member LLC ordinary income for partners subject to SE tax. Excludes capital gains, rental income from real estate (typically not SE), and S-Corp shareholder distributions.
Enter W-2 SS wages from another job if applicable. This is Box 3 of your W-2 (Social Security wages, capped at the 2026 wage base of $184,500). If you do not have a W-2 job, enter 0.
Read the results. The calculator shows: net SE earnings, the SS / Medicare / Additional Medicare components, the half-of-SE-tax deduction, and total SE tax.
Frequently Asked Questions
What is the 2026 self-employment tax rate?
The total self-employment tax rate for 2026 is 15.3%. That is the sum of the 12.4% Social Security (OASDI) rate under IRC section 1401(a) and the 2.9% Medicare rate under IRC section 1401(b)(1). Both halves of FICA (employee and employer) apply because a self-employed person is treated as both the worker and the employer. Additional Medicare Tax of 0.9% under IRC section 1401(b)(2) applies on net SE earnings above $200,000 for single filers and heads of household, $250,000 for married filing jointly, and $125,000 for married filing separately. These Additional Medicare Tax thresholds are statutory and not adjusted for inflation.
What is the 2026 Social Security wage base?
The 2026 Social Security taxable maximum (also called the contribution and benefit base or wage base) is $184,500. The Social Security Administration announced the 2026 figure in October 2025 as part of its annual cost-of-living adjustment. The wage base limits the income subject to the 12.4% Social Security portion of self-employment tax. Earnings above $184,500 are not subject to Social Security tax. The 2.9% Medicare portion has no wage cap and applies to all SE earnings.
How is the 92.35% adjustment calculated for self-employment tax?
Per IRC section 1402(a)(12), self-employed individuals multiply their net SE income by 92.35% before applying the SE tax rates. This adjustment reflects the fact that an employee's wages are not reduced by the employer's share of FICA, while a self-employed person pays both halves directly out of business profits. Multiplying by 92.35% (which equals 100% minus 7.65%, the employee-equivalent FICA rate at the wage base) produces a more equivalent comparison. If your Schedule C net profit is $100,000, your net earnings from self-employment for SE tax purposes are $92,350. The 15.3% SE tax rate is then applied to the smaller figure.
Can I deduct half of my self-employment tax?
Yes. Per IRC section 164(f), you can deduct one-half of your self-employment tax as an above-the-line adjustment to gross income on Form 1040 Schedule 1. This deduction reduces your federal taxable income but does not reduce the SE tax you owe. The deduction applies only to the regular 15.3% SE tax — the 0.9% Additional Medicare Tax under IRC section 1401(b)(2) is not deductible. New Jersey does not allow the half-of-SE-tax deduction for purposes of NJ Gross Income Tax — your NJ taxable income calculation does not get this federal adjustment.
What does the self-employment tax calculator NOT include?
The calculator gives a directional estimate of federal SE tax for tax year 2026. It does not model federal income tax bracket impact, the QBI deduction under IRC section 199A, the optional methods of computing SE earnings under IRC section 1402(l) (farm method) or 1402(l) (nonfarm method), church employee income exemptions under IRC section 1402(a)(8), partnership self-employment earnings allocations, S-Corp owner W-2 wages (S-Corp distributions are not subject to SE tax), or state taxes. It also does not model the interaction with the Section 1402(a)(12) adjustment when the taxpayer also has W-2 wages from another job that already used part of the Social Security wage base. ProAxis runs the precise SE tax calculation as part of every Schedule C engagement.
How does the Social Security wage base interact with W-2 wages from another job?
If you have both W-2 wages and SE earnings, the 2026 Social Security wage base of $184,500 is shared across both. W-2 wages already subject to Social Security tax through your employer reduce the amount of SE earnings subject to the 12.4% Social Security portion. The 2.9% Medicare portion has no cap so it applies to all SE earnings regardless of W-2 wages. Per IRC section 1402(b)(2), the SE tax computation reduces the Social Security base by the amount of W-2 wages that already used the base. This calculator includes a field for prior W-2 SS wages so the SS portion of SE tax does not double-count earnings already taxed at the W-2 level.
Does electing S-Corp status reduce my self-employment tax?
Yes — that is the main reason owners elect S-Corp status under IRC section 1361. S-Corp shareholder distributions are not subject to self-employment tax. Only the W-2 wages paid to the shareholder-employee (which must be a reasonable amount under Rev. Rul. 74-44) carry FICA tax. As a single-member LLC taxed as a sole proprietorship, all $100,000 of net business profit is subject to SE tax. As an S-Corp paying the owner $50,000 in W-2 wages, only $50,000 carries FICA. The other $50,000 distributed as a shareholder dividend is exempt from SE tax. ProAxis publishes a separate S-Corp Savings Calculator that models the savings precisely.
Is this self-employment tax calculator accurate for tax year 2026?
The calculator uses 2026 figures verified against primary government sources: the $184,500 Social Security wage base from the Social Security Administration, the 12.4% / 2.9% / 0.9% rates from IRC section 1401, and the 92.35% adjustment from IRC section 1402(a)(12). The result is a directional planning estimate, not a return-ready figure. Specific facts on your return — multiple businesses, partnership SE earnings allocations, optional methods, state-specific issues — can change the actual tax owed by hundreds or thousands of dollars. Use the result to decide whether a strategy is worth investigating, then book a consultation for the precise calculation.
Related ProAxis Resources
S-Corp Savings Calculator — see how much SE tax the S-Corp election can eliminate by converting profit into shareholder distributions
Bookkeeping Cost Calculator — clean Schedule C books are required to compute SE tax correctly; estimate ongoing monthly bookkeeping cost
Catch-Up Bookkeeping Calculator — if Schedule C books are months behind, estimate the one-time catch-up cost before SE tax can be reliably computed
Want a Precise Self-Employment Tax Analysis?
Schedule a free consultation with ProAxis Tax & Accounting Services. ProAxis runs the full SE tax calculation with all interactions — QBI, retirement plan contributions, S-Corp election analysis, and NJ Gross Income Tax — far beyond what a generic calculator captures.
