OwedZero · freelancer tax planning
Self-employment tax, step by step
Understand the 2026 self-employment tax calculation with worked examples, the Social Security wage base, Medicare and the deductible half.
Generally, net business profit is multiplied by 92.35%. Self-employment tax applies when net earnings reach $400. The Social Security component is 12.4% up to the remaining $184,500.00 wage base. Medicare is 2.9% without that cap.
| Net profit | Net SE earnings | Social Security | Medicare | SE tax |
|---|---|---|---|---|
| $10,000.00 | $9,235.00 | $1,145.14 | $267.82 | $1,412.96 |
| $60,000.00 | $55,410.00 | $6,870.84 | $1,606.89 | $8,477.73 |
| $100,000.00 | $92,350.00 | $11,451.40 | $2,678.15 | $14,129.55 |
| $250,000.00 | $230,875.00 | $22,878.00 | $6,695.38 | $29,573.38 |
Additional Medicare may apply above $200,000 (single/head of household) or $250,000 (joint), using combined covered wages and self-employment earnings. Half of regular SE tax is generally deductible for income-tax purposes; additional Medicare is excluded from that deduction.
What the estimate covers
Tax year 2026, standard deduction, single, married filing jointly or head of household, W-2 blending, self-employment tax and a simplified QBI deduction for an active solo business. State amounts are adjustable flat-rate planning estimates, not state return calculations.
It does not model credits, capital gains, itemized deductions, AMT, married filing separately, annualized installments, special occupations or every deduction eligibility rule. Retirement and health deductions require your own eligibility checks. Prior-year safe harbor assumes a full 12-month return; the zero-tax exception also requires full-year US citizenship or residency. Timing matters even if the annual total is paid.
OwedZero is not affiliated with the IRS or any government agency. Estimates for planning, not tax advice. It does not file returns or send payments. Tax engine 2026.3.0; figures checked September 26, 2026.