Self-Employment Tax Explained (with 2026 figures)

Updated 2026-10-13 · Not tax advice

Self-employment (SE) tax is the Social Security and Medicare tax for people who work for themselves. Employees split these taxes with their employer; self-employed people pay both halves. Source: IRS, Self-Employment Tax.

The numbers

Item	Figure	Source
Total SE tax rate	15.3% (12.4% Social Security + 2.9% Medicare)	IRS
Share of net profit subject to SE tax	92.35%	Schedule SE instructions
Filing threshold	$400 net SE earnings	IRS
2026 Social Security wage base	$184,500	SSA
Additional Medicare Tax	0.9% above $200,000 (single)	IRS

Worked example (illustrative)

Net Schedule C profit of $77,510:

• 92.35% × $77,510 = $71,580.49 of net SE earnings
• 15.3% × $71,580.49 = $10,951.81 SE tax
• Half of that ($5,475.91) is deductible as an adjustment to income on Form 1040

Key points

• SE tax is separate from income tax; most freelancers owe both.
• The half-SE-tax deduction lowers income tax, not SE tax.
• W-2 wages count toward the Social Security wage base first, which can reduce the 12.4% portion.

Run your own numbers with the free quarterly estimated tax calculator.

FAQ

What is the self-employment tax rate?

15.3%: 12.4% for Social Security and 2.9% for Medicare, applied to 92.35% of net self-employment earnings.

Do I owe self-employment tax on small amounts?

You generally owe SE tax if your net earnings from self-employment are $400 or more.