Schedule SE: Self-Employment Tax (2026)
Calculate the 15.3% Social Security and Medicare tax on your self-employment profit.
Schedule SE calculates self-employment tax — 15.3% (12.4% Social Security up to the wage base + 2.9% Medicare) on 92.35% of your net self-employment profit. Half of it is deductible above the line. Because 1099 income has no withholding, you usually pay it in quarterly with Form 1040-ES.
Who files Schedule SE
- Anyone with $400 or more of net self-employment earnings.
- Sole proprietors, 1099 contractors, and single-member LLC owners.
- Partners in a partnership with self-employment income.
- Gig workers whose net profit clears the $400 threshold.
Why self-employment tax exists
W-2 employees split Social Security and Medicare with their employer — 7.65% each. Self-employed people are both employer and employee, so they pay the full 15.3%. Schedule SE applies it to 92.35% of your net profit (the adjustment mirrors the employer-side deduction), caps the 12.4% Social Security portion at the annual wage base, and applies 2.9% Medicare to everything.
The good news: you deduct half of the SE tax as an above-the-line adjustment on Form 1040, which lowers your income tax. Our calculator shows the full breakdown and the deductible half.
Pairing with quarterly payments (Form 1040-ES)
Because no one withholds tax from 1099 income, the IRS expects you to pre-pay income tax and SE tax in four quarterly installments using Form 1040-ES. Miss them and you can owe an underpayment penalty even if you pay in full by April. The safe-harbor planner helps you size each payment so you avoid penalties.
Frequently asked questions
How much is self-employment tax?
15.3% on 92.35% of your net profit — 12.4% Social Security up to the annual wage base plus 2.9% Medicare with no cap. Higher earners also pay an extra 0.9% Medicare surtax.
Do I pay SE tax and income tax?
Yes, both. SE tax funds Social Security and Medicare; income tax is separate and based on your total taxable income. That's why setting aside 25–30% of 1099 profit is a common rule of thumb.
When do I have to file Schedule SE?
When your net self-employment earnings are $400 or more for the year.
How do I lower my SE tax?
Maximize legitimate Schedule C deductions to reduce net profit, and at higher incomes consider an S-corp election, which can shift some profit out of SE tax. Compare with our LLC/S-corp calculator.
Sources & verification
Last reviewed July 12, 2026.