Know exactly what you owe: SE tax (Social Security + Medicare), estimated income tax, effective rate, and quarterly payment schedule — calculated instantly for 2026.
Calculated based on your inputs · Source: IRS Schedule SE · IRC § 1401 · IRS Rev. Proc. 2025-61
Self-Employment Tax Breakdown
| Component | Rate | Amount |
|---|---|---|
| Gross SE Income | — | $0 |
| Less: Business Expenses | — | ($0) |
| Net SE Income | — | $0 |
| SE Income Subject to Tax (× 92.35%) | 92.35% | $0 |
| Social Security Tax | 12.4% | $0 |
| Medicare Tax | 2.9% | $0 |
| Total SE Tax | — | $0 |
| SE Tax Deduction (½ of SE tax) | — | ($0) |
Federal Income Tax Estimate
| Item | Amount |
|---|---|
| Total Gross Income (all sources) | $0 |
| Less: SE Tax Deduction (½ SE tax) | ($0) |
| Less: Business Expenses | ($0) |
| Less: Standard Deduction | ($0) |
| Taxable Income | $0 |
| Federal Income Tax | $0 |
| Top marginal bracket | — |
Total Tax Summary
| Item | Amount |
|---|---|
| SE Tax | $0 |
| Federal Income Tax | $0 |
| State Income Tax (est.) | $0 |
| Total Estimated Tax | $0 |
| Less: W-2 Withholding | ($0) |
| Net Amount Owed (Estimated) | $0 |
Quarterly Estimated Payment Schedule
S-Corp election can eliminate SE tax on profit distributions. Run the numbers — it takes 2 minutes.
Recommended Next Step
Should you switch to S-Corp to cut your SE tax? ⚖️
The Entity Comparison tool shows LLC vs S-Corp vs C-Corp side-by-side — including your specific S-Corp savings, QBI impact, and break-even point. Most users find it clarifying.
When you work as a freelancer, independent contractor, or sole proprietor, you don't have an employer to split FICA taxes with you. Instead, you pay both the employee side (7.65%) and the employer side (7.65%) — a combined 15.3% known as self-employment tax.
The 2026 SE tax rate breaks down as: 12.4% Social Security on net SE income up to $184,500, plus 2.9% Medicare on all net SE income. If your total income exceeds $200,000 (single) or $250,000 (married filing jointly), an additional 0.9% Additional Medicare Tax applies to the excess.
The IRS gives you one important break: you calculate SE tax on 92.35% of net SE income, not 100%. This removes the employer-equivalent portion before applying the tax. You can also deduct half of your SE tax from gross income, reducing your federal income tax base.
Self-employment tax is the combination of Social Security (12.4%) and Medicare (2.9%) taxes that self-employed workers pay directly to the IRS. W-2 employees split these taxes with their employer (each paying 7.65%), but freelancers, sole proprietors, and 1099 contractors pay both halves — 15.3% total — themselves. You owe SE tax if your net self-employment income is $400 or more. Source: IRS Publication 334, Schedule SE.
Step 1: Subtract business deductions from gross SE income to get net SE income. Step 2: Multiply by 92.35% to get SE income subject to tax (this mimics the employer deduction). Step 3: Apply 12.4% Social Security tax on the first $184,500. Step 4: Apply 2.9% Medicare on all SE income subject to tax. Step 5: Sum both amounts. This calculator handles all steps automatically. Source: IRS Schedule SE.
The 2026 Social Security wage base is $184,500. This means only the first $184,500 of your SE income (after the 92.35% adjustment) is subject to the 12.4% Social Security tax. All SE income, regardless of amount, remains subject to the 2.9% Medicare tax. If your income exceeds $200,000 (single) or $250,000 (MFJ), an additional 0.9% Additional Medicare Tax applies to the overage.
Deductible business expenses that reduce SE tax include: home office (simplified: $5/sq ft up to 300 sq ft, or actual expenses), business mileage ($0.70/mile for 2026), software and subscriptions, professional development, health insurance premiums (above-the-line deduction), retirement contributions (SEP-IRA, Solo 401k), equipment and technology, business insurance, and professional fees. Every dollar of legitimate business expense reduces both your SE tax base and federal income tax. Use our Home Office Deduction Calculator for that specific deduction.
Yes — this is one of the primary tax advantages of S-Corp status. S-Corp owners pay themselves a "reasonable salary" (subject to payroll taxes), then take remaining profits as distributions not subject to SE tax. At $80,000+ in net profit, the SE tax savings typically outweigh the added payroll complexity and accounting costs. The IRS requires the W-2 salary to be "reasonable" for the services performed — the S-Corp Election Package Generator can help you get started.
2026 quarterly estimated tax payment due dates: Q1 (January–March income): April 15, 2026. Q2 (April–May income): June 16, 2026. Q3 (June–August income): September 15, 2026. Q4 (September–December income): January 15, 2027. Pay via IRS Direct Pay (free), EFTPS, or mail Form 1040-ES. Underpaying can result in a penalty even if you pay the balance by April 15. Use our Estimated Tax Worksheet Generator for a detailed safe harbor analysis.