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Self-Employment Tax Calculator for Gig Workers (2026)
Self-employment tax is usually the biggest federal bill a delivery or rideshare driver pays, and it applies even when you owe no income tax. See it line by line the way Schedule SE does it. All amounts are in US dollars (USD). Nothing you type leaves your browser.
Estimate for planning only, in USD, based on 2026 figures. Self-employment tax is separate from income tax. How we calculate.
How to use this calculator
- Enter your gig earnings from all apps, tips included, and your business miles for each half of the year. The calculator subtracts mileage at 72.5¢ and 76¢ per mile.
- Add other expenses in the advanced section: phone share, hot bags, parking, tolls.
- If you already know your net profit from Schedule C or an earlier tax return, type it in the net profit box instead.
- Add W-2 wages if you have a regular job. They use up part of the Social Security cap and count toward the extra Medicare threshold.
What the result means
The big number is what goes on Schedule SE and then onto your Form 1040 as a separate tax. It is added to your income tax, and it is owed even if the standard deduction wipes out your income tax. The deductible half is subtracted from your income when computing income tax, which gives a small break, but it never reduces the self-employment tax itself.
Use the table to see each step, including how much of your profit is subject to the Social Security part. For most drivers the whole 92.35% is, because profit is far below the $184,500 cap.
The 2026 self-employment tax figures
| Item | 2026 figure |
|---|---|
| Share of net profit that is taxed | 92.35% |
| Social Security | 12.4%, on earnings up to $184,500 (combined with W-2 wages) |
| Medicare | 2.9%, no cap |
| Additional Medicare tax | 0.9% over $200,000 single or head of household, $250,000 joint, $125,000 separate |
| Minimum | No tax if 92.35% of net profit is under $400 |
| Deduction | Half of the Social Security and Medicare parts |
Three examples
Each was produced by running the calculator's engine with 2026 figures.
1. Part-time driver, $20,000 net profit
- Taxed base: $20,000 × 92.35% = $18,470
- Social Security 12.4%: $2,290. Medicare 2.9%: $536
- Self-employment tax: $2,826, or 14.1% of profit
- Deductible half: $1,413
2. Full-time driver, $33,735 net profit
This is the same driver used in our other calculators: $48,000 of earnings, 18,000 miles, and $900 of expenses.
- Taxed base: $31,154
- Social Security: $3,863. Medicare: $903
- Self-employment tax: $4,767, or 14.1% of profit
- Deductible half: $2,383
3. Driver with a $100,000 day job and $120,000 of gig profit
- Taxed base: $110,820
- Only $84,500 of room is left under the $184,500 cap after the wages, so Social Security is $10,478
- Medicare: $3,214. Additional Medicare tax (combined earnings of $210,820 are $10,820 over $200,000): $97
- Self-employment tax: $13,789, or 11.5% of profit. Deductible half: $6,846
The $400 floor
If 92.35% of your net profit is under $400, you owe nothing. A net profit of $300, for example, results in $0. But once it crosses the line, the tax applies to everything, so $434 of profit owes tax on the whole amount. Drivers whose mileage deduction swallows most of their earnings can sit below it, which is one more reason to log every mile.
How the calculation works
- Net profit = earnings − mileage − other expenses (Schedule C). A loss means no self-employment tax.
- Taxed base = net profit × 92.35%. If the base is under $400, stop. The tax is zero.
- Social Security = 12.4% × the smaller of the base and ($184,500 − W-2 wages).
- Medicare = 2.9% × the base.
- Additional Medicare = 0.9% × the part of (base + wages) above the filing-status threshold, after wages use up their share.
- Total = the sum. Deductible half = (Social Security + Medicare) ÷ 2.
The same code runs inside our 1099 gig tax calculator, so the two always agree.
Ways to lower it
- Log every mile. Each mile deducted removes 72.5¢ or 76¢ of profit, which cuts self-employment tax by roughly 10 to 11 cents.
- Claim real business expenses such as the work share of your phone, bags, tolls, and parking.
- Remember that income tax deductions do not help. The standard deduction, the tips deduction, and the QBI deduction lower income tax only. See the no-tax-on-tips calculator.
- Pay quarterly. Our estimated tax calculator shows the amounts that avoid a penalty.
Frequently asked questions
What is the self-employment tax rate for 2026?
It is 15.3%: 12.4% for Social Security and 2.9% for Medicare. It is applied to 92.35% of your net profit, which makes the effective rate about 14.13% of profit. Employees pay half of this through payroll tax and their employer pays the other half. When you work for yourself, you pay both halves.
Why is it 92.35% of my profit?
Employers deduct their half of payroll tax before it is figured on wages, so the self-employment tax mirrors that by reducing profit by 7.65% first (100% − 7.65% = 92.35%). The result is that the tax is a little lower than a flat 15.3% of profit.
Is there a minimum profit before I owe it?
Yes. If 92.35% of your net profit is under $400, you owe no self-employment tax. At $400 or more, you owe it from the first dollar, not just on the amount above $400. Net profit is after mileage and other business expenses, which is why a driver with a few thousand dollars of earnings can owe nothing.
What is the Social Security wage base for 2026?
The 12.4% Social Security part only applies up to $184,500 of combined earnings in 2026. Your W-2 wages use up the cap first, and your self-employment earnings fill whatever room is left. Medicare has no cap.
What is the additional Medicare tax?
An extra 0.9% Medicare tax applies to earnings above $200,000 for single and head of household filers, $250,000 for married filing jointly, and $125,000 for married filing separately. Wages are counted first. It is reported on Form 8959 and is not part of the half that you deduct.
How much of self-employment tax can I deduct?
Half of the Social Security and Medicare parts. The deduction comes off your income before income tax is computed, but it does not reduce the self-employment tax itself. The 0.9% additional Medicare tax is not deductible.
Do tips count toward self-employment tax?
Yes. Customer tips are part of your gross earnings and your net profit. The federal tips deduction lowers income tax only. See the no-tax-on-tips calculator for how much it saves.
Does mileage lower self-employment tax?
Yes, and it is the biggest lever. Mileage is a business expense on Schedule C, so it reduces net profit, and self-employment tax is figured on net profit. Tracking miles is worth more than almost any other deduction for a delivery driver.
I have a W-2 job and a side gig. How is it calculated?
Your W-2 employer already withholds Social Security and Medicare on wages. On Schedule SE, your wages reduce the Social Security room available for your gig profit if your combined earnings approach $184,500, and they count toward the additional Medicare thresholds. Enter your wages in the advanced section.
Can I avoid self-employment tax?
Not on gig income taxed as a sole proprietor. You can lower it by documenting every business expense. Some people form an S corporation, but that adds payroll, bookkeeping, and state costs that rarely make sense at typical driver incomes. Talk to a tax professional before trying it.
Sources
- IRS, Self-employment tax (Social Security and Medicare taxes) (12.4% and 2.9%, $400 minimum, additional Medicare thresholds)
- IRS, About Schedule SE (Form 1040) (92.35% factor and the deduction for half of the tax)
- Social Security Administration, Contribution and benefit base ($184,500 for 2026)
- IRS, Topic no. 560, Additional Medicare Tax
- IRS, 2026 business standard mileage rate and Announcement 2026-11 (76¢ from July 1, 2026)