Finance

Self-Employment Tax Calculator (1099)

Q: What is self-employment tax?

It is the **Social Security and Medicare tax** that self-employed people pay on their net earnings — a combined **15.3%** (12.4% Social Security + 2.9% Medicare). Employees split these taxes with an employer; when you work for yourself, you pay both halves. It is calculated on Schedule SE.

Q: How much should I set aside for 1099 taxes?

A common rule of thumb is **25%–30% of net profit** for federal taxes, more if you are a high earner or in a state with income tax. This calculator gives a tailored figure: SE tax plus estimated income tax on the profit. On $50,000 of profit, roughly **$10,500** total, or about **$2,615 per quarter**.

Q: Why is SE tax on 92.35% of my profit?

Schedule SE multiplies your net profit by **92.35%** before applying the 15.3% rate. This adjustment mirrors the employer-side deduction that employees effectively get, so self-employed people are not taxed on the 'employer' portion twice.

Q: Can I deduct self-employment tax?

Yes — you can deduct **half of your SE tax** as an above-the-line deduction, which lowers your income (and therefore your income tax). This calculator already applies that deduction when estimating the income tax on your profit.

Q: When are quarterly taxes due?

Federal estimated taxes for 2026 are generally due **April 15, June 15, September 15, 2026, and January 15, 2027**. Pay with Form 1040-ES or through IRS Direct Pay. Paying quarterly avoids the underpayment penalty that applies if you wait until April.

Q: What if I also have a W-2 job?

Your W-2 wages count toward the **Social Security wage base ($184,500)**. If your W-2 wages already fill most of that cap, your SE tax on side income may be **Medicare only (2.9%)**. This calculator accounts for your W-2 wages when computing the Social Security portion.

Q: What is the Additional Medicare Tax?

High earners pay an extra **0.9% Medicare tax** on combined wages and self-employment earnings above **$200,000 (single)** or **$250,000 (married filing jointly)**. The calculator adds this automatically once your earnings cross the threshold.

Calculate your 2026 self-employment tax (Schedule SE 15.3%) on 1099 income, plus estimated federal income tax and your quarterly 1040-ES payment. See the deductible half of SE tax.

Data verified · July 2026
Edited by Martín Rodríguez
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Data updated: Jan 1, 2026 · Source: IRS — Self-employment tax

Edited by: Martín Rodríguez (editorial policy )

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When you work for yourself — freelance, gig, contractor, or small-business income reported on a 1099 — no employer withholds taxes for you. You are responsible for self-employment (SE) tax plus federal income tax, and for paying them quarterly. This calculator estimates all of it for 2026 so you know how much to set aside from every payment.

Self-employment tax covers Social Security and Medicare. As an employee you would split these with your employer; on your own you pay both halves — 15.3% total (12.4% Social Security up to the wage base, 2.9% Medicare with no cap). The good news: you pay it on 92.35% of your net profit, and you can deduct half of the SE tax on your return.

Enter your net profit (1099 income minus business expenses), any W-2 wages you also earned, and your filing status. The tool returns your SE tax, an estimate of the federal income tax on the profit, your total tax to set aside, and the quarterly payment to send with Form 1040-ES.

When to use this calculator

Estimate self-employment tax on your 1099 or freelance net profit.
Figure how much to set aside from each client payment for taxes.
Calculate your quarterly estimated tax payment (Form 1040-ES).
See how much SE tax you pay on $50,000 vs $100,000 of profit.
Account for W-2 wages that already used up part of the Social Security wage base.
See the deductible half of SE tax that lowers your income tax.
Estimate total tax when you have both a W-2 job and a 1099 side hustle.
Check how the 0.9% Additional Medicare Tax applies to high earners.
Plan a self-employed budget by seeing your effective total tax rate.
Decide whether an S-corp election could reduce your SE tax at higher profit.

Approximate 2026 self-employment tax by net profit (no W-2 wages)

Net profit	Net earnings (92.35%)	SE tax (15.3%)	Deductible half
$20,000	$18,470	$2,826	$1,413
$50,000	$46,175	$7,065	$3,532
$75,000	$69,263	$10,597	$5,299
$100,000	$92,350	$14,130	$7,065
$150,000	$138,525	$21,194	$10,597

Source: IRS Schedule SE method (2026). Social Security portion is 12.4% up to the $184,500 wage base; Medicare is 2.9% with no cap. Income tax on the profit is additional.

How it works

How self-employment tax works

Net earnings   = Net profit × 92.35%
SE tax         = 12.4% Social Security (up to wage base) + 2.9% Medicare (no cap)
               (+ 0.9% Additional Medicare above $200,000)
Deduction      = ½ of SE tax  (reduces your income tax)
Total to save  = SE tax + income tax on the profit
Quarterly      = Total ÷ 4  (Form 1040-ES)

As an employee, your employer pays half of Social Security and Medicare (7.65%) and you pay the other half. Self-employed, you pay both halves = 15.3% — that is what 'self-employment tax' means.

The two pieces of SE tax (2026)

Component	Rate	Cap
Social Security	12.4%	Up to $184,500 of combined wages + SE earnings
Medicare	2.9%	No cap
Additional Medicare	+0.9%	On earnings above $200,000 (single) / $250,000 (married)

Because Social Security stops at the wage base, high W-2 wages can use up that cap — so your SE tax on a side gig may be Medicare only.

Worked example — W-2 job plus a side hustle

You earn $150,000 in W-2 wages and $40,000 of 1099 profit (single):
1. Net SE earnings: $40,000 × 92.35% = $36,940.
2. Social Security room left: $184,500 − $150,000 = $34,500 → 12.4% × $34,500 = $4,278.
3. Medicare: 2.9% × $36,940 = $1,071.
4. SE tax = $5,349 — lower than it would be without the W-2 wages, because the Social Security cap was nearly full.

Why you must pay quarterly

2026 estimated-tax deadline	For income earned
April 15, 2026	Jan 1 – Mar 31
June 15, 2026	Apr 1 – May 31
September 15, 2026	Jun 1 – Aug 31
January 15, 2027	Sep 1 – Dec 31

The IRS expects tax as you earn it. Skipping quarterly payments (Form 1040-ES) can trigger an underpayment penalty, even if you pay in full by April.

Ways to lower it

Deduct every legitimate business expense — this lowers net profit, which lowers both SE tax and income tax.

Half of SE tax is deductible against income tax (already applied here).

The QBI deduction may let you deduct up to 20% of qualified business income for income-tax purposes (not modeled here; see IRS rules).

An S-corp election can, at higher profits, reduce SE tax by splitting income into salary + distributions — weigh the added cost and complexity with a CPA.

Disclaimer

Educational estimate of federal self-employment and income tax. It does not include state tax, the QBI deduction, retirement-plan deductions, or credits, and it assumes standard-deduction income-tax treatment of the profit. Consult the IRS and a tax professional before making payments or decisions.

Example: $50,000 of 1099 net profit, single, no W-2 wages

Net earnings from SE: $50,000 × 92.35% = $46,175.

Social Security: $46,175 × 12.4% = $5,726. Medicare: $46,175 × 2.9% = $1,339.

Self-employment tax = $5,726 + $1,339 = $7,065; half ($3,532) is deductible.

Income tax on the profit ≈ $3,396, so set aside about $10,461 — roughly $2,615 each quarter.

SE tax about $7,065; set aside ~$2,615 per quarter

Frequently asked questions

What is self-employment tax?

It is the Social Security and Medicare tax that self-employed people pay on their net earnings — a combined 15.3% (12.4% Social Security + 2.9% Medicare). Employees split these taxes with an employer; when you work for yourself, you pay both halves. It is calculated on Schedule SE.

How much should I set aside for 1099 taxes?

A common rule of thumb is 25%–30% of net profit for federal taxes, more if you are a high earner or in a state with income tax. This calculator gives a tailored figure: SE tax plus estimated income tax on the profit. On $50,000 of profit, roughly $10,500 total, or about $2,615 per quarter.

Why is SE tax on 92.35% of my profit?

Schedule SE multiplies your net profit by 92.35% before applying the 15.3% rate. This adjustment mirrors the employer-side deduction that employees effectively get, so self-employed people are not taxed on the 'employer' portion twice.

Can I deduct self-employment tax?

Yes — you can deduct half of your SE tax as an above-the-line deduction, which lowers your income (and therefore your income tax). This calculator already applies that deduction when estimating the income tax on your profit.

When are quarterly taxes due?

Federal estimated taxes for 2026 are generally due April 15, June 15, September 15, 2026, and January 15, 2027. Pay with Form 1040-ES or through IRS Direct Pay. Paying quarterly avoids the underpayment penalty that applies if you wait until April.

What if I also have a W-2 job?

Your W-2 wages count toward the Social Security wage base ($184,500). If your W-2 wages already fill most of that cap, your SE tax on side income may be Medicare only (2.9%). This calculator accounts for your W-2 wages when computing the Social Security portion.

What is the Additional Medicare Tax?

High earners pay an extra 0.9% Medicare tax on combined wages and self-employment earnings above $200,000 (single) or $250,000 (married filing jointly). The calculator adds this automatically once your earnings cross the threshold.

Does an S-corp reduce self-employment tax?

It can, at higher profit levels. An S-corp lets you pay yourself a reasonable salary (subject to payroll tax) and take the rest as distributions (not subject to SE tax). The savings must outweigh payroll, accounting, and compliance costs — discuss the trade-off with a CPA before electing.

Sources & references

Methodology & trust

Editorial

Finance calculator with its formula verified automatically against IRS — Self-employment tax (Social Security and Medicare taxes), per our editorial policy and methodology.

Updates

Updated: July 2026. Parameters are verified periodically against the cited sources.

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Calculations run 100% in your browser. We do not store or transmit your data.

Limitations

Indicative results. For critical decisions, consult a professional.

📌 How to cite this calculator

Rodríguez, M. (2026). Self-Employment Tax Calculator (1099). Hacé Cuentas. https://hacecuentas.com/en/self-employment-tax-calculator-1099

Content licensed under CC-BY 4.0 — reuse it citing the source with a link to Hacé Cuentas.

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