Self-Employment Tax Estimator
Master the math of independent work. Calculate your mandatory Social Security and Medicare contributions for 2026 and keep more of what you earn.
FICA for Freelancers
Unlike W-2 workers who share the cost with their employer, self-employed individuals must pay the full 15.3% Social Security and Medicare tax.
Tax Burden Meter
Determine the exact amount you'll owe for Social Security and Medicare as a business owner.
The 15.3% Tax Explained
For traditional employees, FICA (Social Security and Medicare) is a shared burden: 7.65% from the worker and 7.65% from the employer. As an independent professional, you serve both roles. This requires a total 15.3% withholding on your net earnings.
However, the IRS uses a specific formula to level the playing field. Only 92.35% of your net profit is subject to self-employment tax, reflecting the fact that employer-paid taxes are not taxable income to an employee.
Critical 2026 Thresholds
Income exceeding this threshold is exempt from the 12.4% portion of self-employment tax.
The 2.9% Medicare tax applies to all earnings, with an additional 0.9% for high-earners.
Strategy: Reducing Your SE Tax Liability
While self-employment tax is mandatory, it is only applied to Net Profit. This means every dollar you legitimately deduct as a business expense lowers your SE tax burden.
Expert Context: If your net profit is consistently high, you may consider an S-Corp election. This allows you to pay yourself a "reasonable salary" (subject to SE tax) and take the rest as distributions (not subject to SE tax). Use our 1099 Tax Tool to model your overall tax strategy.
Avoid Underpayment Penalties.
Self-employed individuals are generally required to make **Estimated Tax Payments** every quarter (April, June, September, January). Use our calculator to ensure your quarterly withdrawals are accurate enough to avoid IRS interest charges.