Free Tax Calculators for
Self-Employed & Business Owners

Self-employment tax is the 15.3% federal tax paid by self-employed individuals and 1099 contractors to fund Social Security (12.4%) and Medicare (2.9%). Unlike W2 employees who split this with their employer, self-employed taxpayers pay the full 15.3% themselves on net self-employment income. For 2026, the Social Security portion applies only to the first $176,100 of net earnings — the Medicare portion applies to all earnings with an additional 0.9% for income above $200,000 (single) or $250,000 (married filing jointly). The IRS allows a deduction of 50% of self-employment tax on your Form 1040, which reduces your adjusted gross income. Forming an S-Corporation can reduce self-employment tax by paying yourself a "reasonable salary" and taking additional profit as distributions — our S-Corp Tax Savings Calculator shows exactly how much you could save. Source: IRS SE Tax Guide.