How self-employment tax works
Employees split Social Security and Medicare with their employer. When you're self-employed, you pay both halves: 15.3% in total — 12.4% for Social Security and 2.9% for Medicare.
- It applies to 92.35% of your net profit (the employer-equivalent portion is excluded).
- The Social Security part stops at the 2026 wage base of $184,500, combined with any W-2 wages.
- Medicare has no cap, and an extra 0.9% applies above $200,000 (single) or $250,000 (married filing jointly).
- You owe it once net earnings reach $400.
SE tax = profit × 92.35% × 15.3% (Social Security part capped at $184,500)
Half of your SE tax is deductible when working out your income tax.
2026 federal income tax brackets
| Rate | Single | Married filing jointly |
|---|---|---|
| 10% | up to $12,400 | up to $24,800 |
| 12% | to $50,400 | to $100,800 |
| 22% | to $105,700 | to $211,400 |
| 24% | to $201,775 | to $403,550 |
| 32% | to $256,225 | to $512,450 |
| 35% | to $640,600 | to $768,700 |
| 37% | above | above |
The 2026 standard deduction is $16,100 (single) and $32,200 (married filing jointly).
Quarterly estimated payments
Freelancers don't have tax withheld, so the IRS expects estimated payments four times a year. The calculator divides your total by four as a starting point. Setting aside 25–30% of every payment you receive is a simple habit that avoids a surprise in April.
Frequently asked questions
What is the self-employment tax rate for 2026?
15.3% on 92.35% of net profit: 12.4% Social Security up to the $184,500 wage base, plus 2.9% Medicare with no cap.
Do I pay self-employment tax and income tax?
Yes. SE tax covers Social Security and Medicare; income tax is separate. Half of your SE tax is deducted when calculating income tax.
What is the QBI deduction?
A deduction of up to 20% of qualified business income for many self-employed people. It phases out for higher incomes in some service fields; the calculator uses a simplified version.
Does this include state tax?
No — federal only. Most states add their own income tax.
Is this tax advice?
No. It's an estimate using 2026 IRS figures. Your actual tax depends on credits, deductions and other income.
TakehomeKit is independent and not affiliated with Fiverr, Upwork, Payoneer, Wise or any other company mentioned. Fees, limits and tax rules change; we check them regularly, but always confirm the final number with the platform or an adviser before you rely on it.