1099 Tax Calculator
If you earn 1099 income as a freelancer, contractor, or gig worker, you pay self-employment (SE) tax to cover Social Security and Medicare, on top of income tax. This calculator estimates your 2026 SE tax from your net profit (1099 income minus business expenses). SE tax is 15.3%: 12.4% Social Security on the first $184,500 of net earnings plus 2.9% Medicare on all net earnings, with an extra 0.9% for high earners. Half of the SE tax is deductible against income tax. Enter your net profit to see your SE tax, the deductible half, and your effective rate. Figures are sourced from the IRS for 2026.
On $60,000 of net freelance profit, the 2026 self-employment tax is $8,477.73 (an effective 14.13%), of which $4,238.87 is deductible against income tax.
How 1099 self-employment tax works
net earnings = net profit x 92.35%
Social Security = min(net earnings, $184,500) x 12.4%
Medicare = net earnings x 2.9% (+ 0.9% over the threshold)
SE tax = Social Security + Medicare; deduct half against income tax
Self-employment (1099) tax for 2026: net earnings from self-employment = net profit x 0.9235; the 12.4% Social Security portion applies up to the $184,500 wage base, the 2.9% Medicare portion applies to all net earnings, and an extra 0.9% Additional Medicare tax applies to net earnings above $200,000 (single) / $250,000 (joint). Half of the SE tax is deductible from income. This tool assumes 1099-only income (no W-2 wages using part of the Social Security wage base). Figures: IRS/SSA 2026.
Where the 15.3% headline misleads
The figure that trips up most freelancers is 15.3 percent. Applied to your whole profit it overstates the bill, because self-employment tax runs on 92.35 percent of net profit, not the full amount. On $60,000 of profit the tax is $8,477.73, an effective 14.13 percent, not the $9,180 that a flat 15.3 percent would imply. That 92.35 percent step mirrors the employer share of FICA that an employee never pays tax on, and skipping it is the single most common 1099 miscalculation.
The rate does not stay flat as income climbs, either. The 12.4 percent Social Security portion stops at the $184,500 wage base for 2026, which you hit at about $199,783 of net profit ($184,500 divided by 0.9235). Above that, only the 2.9 percent Medicare portion (plus 0.9 percent for high earners) keeps applying, so your marginal self-employment tax rate falls sharply. Anyone who assumes 15.3 percent all the way up will overstate what a large freelance year actually costs.
Two things this tool cannot see are worth holding in mind. A W-2 job on the side fills the Social Security wage base first, so a freelancer with wage income may owe less on the 1099 side than shown here. And the deductible half lowers your income tax, not the self-employment tax itself: the $4,238.87 deduction on $60,000 trims taxable income, so its real value is your income-tax rate times that figure, not a dollar-for-dollar cut.
1099 self-employment tax: frequently asked questions
What is self-employment tax?
Self-employment (SE) tax is how 1099 freelancers and independent contractors pay Social Security and Medicare. It is 15.3% total: 12.4% for Social Security (on the first $184,500 of net earnings in 2026) plus 2.9% for Medicare (on all net earnings). It replaces the FICA taxes an employer would otherwise split with you.
How is 1099 SE tax calculated?
First, multiply your net profit by 92.35% to get your net earnings from self-employment. Then apply 12.4% Social Security (up to $184,500) and 2.9% Medicare. High earners add 0.9% Additional Medicare tax on net earnings over $200,000 (single) or $250,000 (joint). For example, $60,000 of profit gives $8,477.73 of SE tax.
Can I deduct any of the SE tax?
Yes. You can deduct half of your regular SE tax (the Social Security and Medicare portions) as an adjustment to income on your federal return, which lowers your income tax. On $60,000 profit that deduction is about $4,238.87. The 0.9% Additional Medicare tax is not deductible.
Do I owe income tax on top of SE tax?
Yes, SE tax is separate from federal and state income tax. Freelancers also usually pay quarterly estimated taxes to cover both. Set aside roughly 25-30% of net profit as a rule of thumb, then use this tool plus an income tax calculator for a precise figure.
Official sources
- SE tax rates and Social Security wage base (2026): IRS Topic 554 and SSA, as at 15 July 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 15 July 2026. See our methodology. General information, not tax advice.