Quick answer: self-employment tax in 2026 is 15.3% of 92.35% of your net earnings — 12.4% for Social Security (capped at $184,500) plus 2.9% for Medicare (no cap). Use our free Self-Employment Tax Calculator for an instant estimate.
Why It Exists
Employees split Social Security and Medicare tax with their employer. Self-employed people don't have an employer to split with, so they pay both halves themselves — hence "self-employment tax," a separate tax from income tax.
How the Calculation Works
First, 92.35% of your net self-employment earnings becomes the taxable base (this accounts for the employer-equivalent portion). Then: 12.4% Social Security applies up to the 2026 wage base of $184,500; 2.9% Medicare applies to all earnings with no cap.
The Deduction You Can Claim
You can deduct half of your total SE tax as an adjustment to income on your federal return — even without itemizing. This partially offsets the extra burden of paying both tax shares yourself.
Frequently Asked Questions
What is the 2026 Social Security wage base?
$184,500. Earnings above that aren't subject to the 12.4% Social Security portion, though the 2.9% Medicare portion still applies.
Is SE tax the same as income tax?
No — SE tax funds Social Security/Medicare and is owed in addition to, not instead of, federal income tax on the same earnings.
Do high earners owe extra?
Yes — an Additional Medicare Tax of 0.9% applies to self-employment income above $200,000 (single) or $250,000 (married filing jointly).
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