U.S. SECA: $50,000 net → $7,064.78
If you work for yourself in the United States (freelance, gig, sole proprietor) you pay the self-employment tax (SECA) instead of the FICA tax that employees split with their employer. The rate is 15.3%: 12.4% for Social Security and 2.9% for Medicare, applied to 92.35% of your net earnings.
Default example: $50,000 net → taxable base $46,175 → Social Security $5,725.70 + Medicare $1,339.08 = $7,064.78.
How SECA works (IRC § 1401)
taxableBase = 92.35% × netEarnings socialSecurity = 12.4% × taxableBase (cap $184,500) medicare = 2.9% × taxableBase (no cap) totalSECA = socialSecurity + medicare
Self-employed vs employee (W-2)
The difference vs an employee with a W-2 is visible but meaningful: the employee sees 7.65% on their pay stub while the employer quietly pays the other 7.65%. The self-employed person pays both halves on 92.35% of net earnings.
| Item | Employee (W-2) | Self-employed (1099-NEC) |
|---|---|---|
| Social Security | 6.2% (half) | 12.4% (both halves) |
| Medicare | 1.45% (half) | 2.9% (both halves) |
| Base | Gross wages | 92.35% of net earnings |
| Visible total | 7.65% | 15.3% |
Quick scenario table 2026
| Net earnings | Taxable base (92.35%) | Social Security | Medicare | Total SECA |
|---|---|---|---|---|
| $25,000 | $23,087.50 | $2,862.85 | $669.54 | $3,532.39 |
| $50,000 | $46,175.00 | $5,725.70 | $1,339.08 | $7,064.78 |
| $100,000 | $92,350.00 | $11,451.40 | $2,678.15 | $14,129.55 |
| $184,500 | $170,385.75 | $21,127.83 | $4,941.19 | $26,069.02 |
| $250,000 | $230,875.00 | $22,878.00 (capped) | $6,695.38 | $29,573.38 |
The wage base cap (OASDI)
The Social Security portion stops at the OASDI contribution and benefit base, which for 2026 is $184,500 (Federal Register 2025-19763). The cap applies to the taxable base (the 92.35% amount): it is reached at roughly $199,783 of net earnings. Earnings above that still owe the 2.9% Medicare portion, which has no ceiling. The 0.9% Additional Medicare Tax and the 3.8% NIIT are separate taxes this calculator does not include.
Quarterly estimated payments (Form 1040-ES)
With no payroll withholding, the IRS expects SECA to be paid through quarterly estimated payments (Form 1040-ES) in April, June, September and January. Waiting until the annual return can trigger underpayment penalties. This calculator estimates the full-year tax; spread it across the four payments according to your quarterly earnings.
| Annual net earnings | Total SECA | 1040-ES payment (÷4, even income) | Half deductible (Form 1040 adjustment) |
|---|---|---|---|
| $25,000 | $3,532.39 | $883.10 | $1,766.20 |
| $50,000 | $7,064.78 | $1,766.20 | $3,532.39 |
| $100,000 | $14,129.55 | $3,532.39 | $7,064.78 |
| $250,000 | $29,573.38 | $7,393.35 | $14,786.69 |
The half-SE-tax deduction
You can deduct half of your SECA as an above-the-line adjustment on Form 1040 (Schedule SE → Form 1040 self-employment tax adjustment line). It does not reduce the SECA itself, but it lowers your taxable income for income-tax purposes. This calculator does not include the adjustment.
What this calculator does not include
- The Additional Medicare Tax of 0.9% on SE income above $200,000 (single) or $250,000 (married filing jointly) — see our Additional Medicare calculator.
- The income-tax deduction for half of your SE tax on Form 1040.
- Federal or state income tax, or quarterly payment planning.
- The 3.8% Net Investment Income Tax.
Official sources
- IRS Topic 554 — Self-Employment Tax
- IRS — Self-Employment Tax Center
- Federal Register 2025-19763 — 2026 OASDI base
Related U.S. calculators:
- U.S. FICA calculator
- Additional Medicare calculator
- Federal minimum wage calculator
- FUTA calculator
- 2026 401(k) deferral limit
- QBI $16,000 does not cut this SECA line
- SECA on $60,000: $8,477.73
It is the SECA tax (IRC § 1401) that self-employed people pay instead of FICA: 12.4% for Social Security plus 2.9% for Medicare, applied to 92.35% of net earnings (IRS Topic 554). At $50,000 net the total is $7,064.78 ($5,725.70 + $1,339.08).
Employees pay half of FICA through payroll withholding and never see it. To put self-employed workers on equal footing, the IRS lets you compute SE tax on 92.35% of net earnings, which approximates the employer-half deduction.
Yes. The 12.4% Social Security portion applies only up to the OASDI wage base ($184,500 for 2026). The 2.9% Medicare portion has no cap.
No. This calculator covers only SECA. It excludes federal/State income tax, the 0.9% Additional Medicare Tax on high incomes, and the income-tax deduction for half of your SE tax.
The IRS expects quarterly estimated payments with Form 1040-ES (April, June, September and January) because self-employed workers have no payroll withholding. Paying less than 90% of the current-year tax or 100% of the prior-year tax can trigger a penalty.
It is an above-the-line adjustment on Form 1040 that lets you deduct 50% of the SECA you paid. It does not reduce SECA itself, but it lowers your taxable income for income-tax purposes.