# Self-employment tax calculator

https://salesbond.app/tools/self-employment-tax-calculator/
Updated: 2026-11-05

# 1099 and self-employment tax calculator 2026

Self-employment tax is 15.3% of 92.35% of your net earnings: 12.4% Social Security up to the annual wage base plus 2.9% Medicare, and 0.9% more above $200,000 (single). You owe it once net earnings reach $400. Half of it is deductible when you calculate income tax, and both are usually paid in four quarterly estimated payments.

Enter your net self-employment income and filing status to estimate Social Security and Medicare tax under Schedule SE, federal income tax and what to pay each quarter. Useful for freelancers, independent contractors and commission-only sales reps paid on a 1099.

## How self-employment tax is calculated

1. **Net profit** = 1099 and other self-employment income minus business expenses (Schedule C).
2. **Net earnings** = net profit × 92.35% (Schedule SE). Below $400 there is no self-employment tax.
3. **Social Security**: 12.4% of net earnings up to $184,500, minus any W-2 wages that already used the wage base. **Medicare**: 2.9% of all net earnings, and 0.9% Additional Medicare Tax above $200,000 ($250,000 married filing jointly).

## Federal income tax on 1099 income

Income tax is figured on net profit plus other income, minus half of the self-employment tax and the 2026 standard deduction, using the Rev. Proc. 2025-32 brackets. The qualified business income (QBI) deduction, itemized deductions, credits and state income tax are not included, so treat the result as a cautious estimate.

## Quarterly estimated payments

The calculator divides the year’s federal tax, minus anything already withheld, into four equal payments due April 15, June 15, September 15 and January 15. Paying 90% of this year’s tax or 100% of last year’s (110% above $150,000 AGI) avoids the underpayment penalty.

## Worked example

Single filer, $50,000 net self-employment income, no other income (state tax not included):

| Line | 2026 |
| --- | --- |
| Social Security (12.4% × $46,175) | $5,725.70 |
| Medicare (2.9% × $46,175) | $1,339.08 |
| Self-employment tax | $7,064.78 |
| Deductible half of SE tax | $3,532.39 |
| Federal income tax | $3,396.11 |
| Total federal tax | $10,460.89 |
| Quarterly estimated payment | $2,615.22 |

## Frequently asked questions

### How much should I set aside for 1099 taxes?

Many freelancers set aside 25–30% of net profit for federal self-employment and income tax, plus state tax where it applies. Brackets, deductions and other income change the real figure, so run your own numbers and adjust each quarter.

### What is the self-employment tax rate for 2026?

It is 15.3% of 92.35% of net earnings from self-employment: 12.4% Social Security on earnings up to the $184,500 wage base and 2.9% Medicare on all of them, plus 0.9% Additional Medicare Tax above $200,000 for a single filer.

### When are quarterly estimated taxes due?

For 2026 income: April 15, June 15 and September 15, 2026, and January 15, 2027. A due date that falls on a weekend or legal holiday moves to the next business day.

### How do I avoid an underpayment penalty?

Pay, through withholding and estimated payments, at least 90% of this year’s tax or 100% of last year’s tax, whichever is smaller. If last year’s AGI was over $150,000, the prior-year figure is 110%.

### Do I pay self-employment tax if I also have a W-2 job?

Yes. Your W-2 wages count toward the Social Security wage base first, so if they are high, less or no Social Security part of self-employment tax is due on the side income. The Medicare part is always due.

### Is self-employment tax deductible?

Half of it is. The employer-equivalent half is an adjustment to income on Schedule 1, which lowers income tax. It does not lower the self-employment tax itself.

### When will I get a 1099-NEC?

A client files Form 1099-NEC when it pays you at least the reporting threshold in a year: $600 through 2025 and $2,000 for payments made after 2025. The income is taxable whether or not you receive the form.

Related tools: [payroll calculator](https://salesbond.app/tools/payroll-calculator/), [employee cost calculator](https://salesbond.app/tools/employee-cost-calculator/). More on sales and running a sales team on the [SalesBond blog](https://salesbond.app/blog/) and the [home page](https://salesbond.app/).

## Official sources

- [Schedule SE (Form 1040)](https://www.irs.gov/forms-pubs/about-schedule-se-form-1040) — self-employment tax.
- [IRS Self-Employment Tax Center](https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes) — Social Security and Medicare for the self-employed.
- [IRS estimated taxes and Form 1040-ES](https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes) — quarterly payments and safe harbor.
- [Rev. Proc. 2025-32](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf) — 2026 tax brackets and standard deduction.
- [SSA contribution and benefit base](https://www.ssa.gov/oact/cola/cbb.html) — $184,500 for 2026.

**Updated on Nov 5, 2026.** This calculator is for information only and is not tax, legal or payroll advice. Results are estimates based on the official 2026 figures above; check your situation with the IRS, your state or a tax professional.