Self-employment tax calculator

Self-employment tax replaces the Social Security and Medicare tax an employer would split with you. It is 15.3 % of 92.35 % of your net profit. The 12.4 % Social Security part stops at the wage base, $176,100 in 2025 and $184,500 in 2026. The 2.9 % Medicare part has no cap.

Half of the self-employment tax is deducted from your income. The calculator then subtracts the standard deduction and the qualified business income deduction, which is 20 % of your profit after that half, and taxes the rest with the federal brackets for the year you pick.

Quarterly estimated payments are a quarter of the self-employment tax plus the income tax the business adds. They are due in April, June, September and January.

• Federal taxes only. State and local income tax is not included.
• You take the standard deduction and have no other income than the business profit and the W-2 wages you enter.
• The new deductions for tips, overtime pay, car loan interest and people 65 or older are not included.
• Self-employment tax is 15.3 % of 92.35 % of net profit: 12.4 % Social Security up to the wage base and 2.9 % Medicare with no cap.
• Social Security wage base: $176,100 for 2025 and $184,500 for 2026. W-2 wages use it up first.
• The 0.9 % Additional Medicare Tax applies above $200,000 (single, head of household) or $250,000 (married filing jointly), minus your wages.
• The QBI deduction is 20 % of profit minus half of the self-employment tax, up to 20 % of taxable income. Above the threshold it is phased out fully, as for a service business or one without employees.
• For 2026 the QBI deduction is at least $400 when qualified business income is $1,000 or more.
• Quarterly payments are one quarter of the self-employment tax plus the extra income tax the business adds. Tax on wages is assumed to be covered by withholding.
• Credits, retirement contributions, health insurance deductions and the safe harbor based on last year's tax are not included.

How much self-employment tax do I pay on $60,000 of profit?

About $8,478. That is 15.3 % of $55,410, which is 92.35 % of $60,000. Half of it, about $4,239, is deductible from your income.

Do I have to pay estimated taxes?

Generally yes, if you expect to owe $1,000 or more when you file. You can avoid a penalty by paying at least 90 % of this year's tax or 100 % of last year's tax (110 % if your income was over $150,000).

What is the QBI deduction?

It lets many sole proprietors deduct up to 20 % of their qualified business income. Below the income threshold ($201,750 single, $403,500 joint in 2026) you get the full amount. Above it, limits based on wages paid and the type of business apply.

Does a W-2 job change my self-employment tax?

Only above the Social Security wage base. Your wages count first, so if they already reach the base you pay just the 2.9 % Medicare part on your business profit.

• www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
• www.irs.gov/forms-pubs/about-schedule-se-form-1040
• www.irs.gov/newsroom/qualified-business-income-deduction
• www.irs.gov/pub/irs-drop/rp-25-32.pdf
• www.irs.gov/pub/irs-drop/rp-24-40.pdf
• www.ssa.gov/oact/cola/cbb.html