If you work as an independent contractor, freelancer or sole proprietor, you pay self-employment tax on top of income tax. Here’s how it works in 2026.

The calculation (Schedule SE)

SE tax = Net earnings × 92.35% × 15.3%

  • 12.4% Social Security (up to the $184,500 wage base)
  • 2.9% Medicare (all earnings)
  • The 92.35% factor accounts for the deductible half of the tax

That’s an effective rate of 14.13% on your net profit.

Example: $50,000 of net profit

  • $50,000 × 0.9235 = $46,175
  • $46,175 × 15.3% = $7,064.77 of SE tax
  • Half of it ($3,532.39) is deductible above the line

The self-employment tax calculator does this in seconds, and the 1099 calculator shows the full picture for 1099 income.

What about income tax?

SE tax is separate from federal income tax. You still owe income tax on your taxable income (see the income tax calculator) and should pay both through estimated tax payments if you expect to owe $1,000 or more.