Self-Employment Tax Calculator (1099)
Calculate Schedule SE taxes and deductible expenses for freelancers and contractors.
Total Self-Employment Tax
$0.00
- Social Security (12.4%)$0.00
- Medicare (2.9%)$0.00
- Net Profit$0.00
- Taxable Base (92.35%)$0.00
- 50% Deductible Portion$0.00
How Self-Employment Tax Works for 1099 Contractors
Independent contractors, freelancers, and sole proprietors pay the Self-Employment Tax (15.3%) to cover both the employee and employer portions of FICA taxes:
- Social Security (12.4%): Applied to net self-employment earnings up to the annual limit ($168,600).
- Medicare (2.9%): Applied to all net self-employment earnings without a cap.
- 50% Tax Deduction: The IRS allows you to deduct half of your self-employment tax from your gross income on Form 1040, lowering your overall income tax liability.
Formula
Net Profit = 1099 Income − Business Expenses
Taxable Base = Net Profit × 0.9235
SE Tax = (Base × 12.4%) + (Base × 2.9%)
Taxable Base = Net Profit × 0.9235
SE Tax = (Base × 12.4%) + (Base × 2.9%)
Self-Employment Tax Rates (2026)
| Component | Rate | Cap |
|---|---|---|
| Social Security | 12.4% | $168,600 |
| Medicare | 2.9% | No cap |
| Taxable Factor | 92.35% | of Net Profit |
Frequently Asked Questions
You must file Schedule SE and pay self-employment tax if your net earnings from self-employment are $400 or more in a tax year.
Self-employment tax is calculated on Net Profit (Gross Income minus ordinary and necessary business expenses), so logging valid expenses lowers your tax base.