Taxorly AI Tax Advisor
Answered June 3, 2026
To calculate your self-employment (SE) tax, you'll need to determine your net earnings from self-employment. For 2026, the SE tax rate is 15.3% of your net earnings, which includes 12.4% for Social Security and 2.9% for Medicare.
Let's say your net earnings from self-employment are $50,000. You'll pay 15.3% of $50,000 in SE tax, but only on the first $147,000 of earnings for Social Security. For Medicare, there's no earnings limit.
First, calculate your SE tax on the first $147,000: $50,000 * 15.3% = $7,650. However, since $50,000 is below $147,000, you'll pay $7,650.
Now, you can deduct half of your SE tax as a business expense. So, you'll deduct $7,650 / 2 = $3,825 from your taxable income.
Try our Self-Employment Tax Calculator at taxorly.com/se-tax-calculator.
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