Self-Employment Tax Guide (2026) - Social Security & Medicare
Self-employment tax guide: Social Security and Medicare taxes for freelancers, deduction rules, and calculation methods.
Summary
Self-employment tax: 15.3% total (12.4% Social Security + 2.9% Medicare). Deduct half as business expense. Social Security capped at $168,600 income for 2026.
Key Steps
- 1Self-employment tax rate: 15.3% of net self-employment income.
- 2Social Security portion: 12.4% up to $168,600 income cap for 2026.
- 3Medicare portion: 2.9% on all income, additional 0.9% for high earners.
- 4Deduction: deduct half of self-employment tax as business expense.
- 5Schedule SE: calculate and report self-employment tax on IRS form.
- 6Quarterly payments: include self-employment tax in estimated payments.