Self-employment tax estimate ESTIMATE
Regular-method Social Security and Medicare tax on 2026 net self-employment earnings.
General information, not tax or legal advice. The rate, the 92.35% factor, the $400 rule, and Additional Medicare thresholds are from IRS Topic 554. The 2026 Social Security ceiling is from Publication 334 and the SSA.
Self-employment tax ESTIMATE
The regular method, in order
Topic 554 says you usually pay self-employment tax if net earnings are $400 or more, and that the amount subject to the tax is generally 92.35% of net earnings. This page multiplies profit by 92.35% and, if that result is under $400, stops. That follows the regular method on Schedule SE. Optional methods, church-employee rules, and more than one business are not included.
The tax itself is 12.4% for Social Security plus 2.9% for Medicare. Social Security applies only up to the wage base that is left after W-2 wages. Publication 334 states the maximum net self-employment earnings subject to the social security part is $184,500 for 2026. Medicare applies to all of the 92.35% base. You can deduct one-half of this self-employment tax when you figure adjusted gross income. The 0.9% Additional Medicare Tax is not part of that half. Topic 554 sets its thresholds at $250,000 married filing jointly, $125,000 married filing separately, and $200,000 for everyone else.
A $100,000 example
Net profit of $100,000 and no W-2 wages produces a base of $92,350. Social Security tax is 12.4% × $92,350 = $11,451.40. Medicare tax is 2.9% × $92,350 = $2,678.15. Self-employment tax is $14,129.55. Half of that is the income-tax deduction. Additional Medicare Tax is zero because $92,350 is under every threshold above. Income tax on the profit is a separate calculation; this page does not compute it. Quarterly payments that include both are on the estimated tax page, and you type in the total tax yourself.
Who this is aimed at
Sole proprietors and single-member LLCs that are disregarded for income tax pay this tax on net earnings. Partners can too. S corporation shareholders do not pay self-employment tax on distributions, but wages they take are FICA wages — and the IRS expects reasonable compensation. That comparison is educational background on the LLC and S corp page, not a reason to skip wages. Employees receiving a W-2 already have FICA withheld; use the payroll tax estimator for that payment instead of stacking it here except for the wage-base fields.
Sources
- IRS Topic 554, Self-employment tax — 92.35% factor, $400 rule, 12.4% plus 2.9%, deductible half, and Additional Medicare thresholds.
- IRS Publication 334 — 2026 Social Security ceiling of $184,500 on net self-employment earnings, and the 15.3% description.
- SSA contribution and benefit base — 2026 base $184,500 and the 12.4% self-employment OASDI rate.