Both halves, one bill
An employee pays 7.65% and never sees the matching 7.65% the employer pays. In private practice you are both parties, so the full 15.3% shows up on one line of your return. Same tax, more visible.
2026 tax year · Free tool
Self-employment tax calculator, the 15.3% nobody warned you about
The first year in private practice, this is the bill that catches people out. You are paying both halves of Social Security and Medicare, and it lands before income tax is even calculated. Here is exactly what it costs on your numbers.
Estimated 2026 self-employment tax
$0
Enter your net profit to see the estimate.
Per quarter$0
Deductible half$0
Rate on profit0%
How we got there
Schedule SE in four lines.
Net self-employment profit$0
Net earnings from self-employmentProfit × 92.35%$0
Social Security12.4% up to the wage base$0
Medicare2.9% with no ceiling$0
Additional Medicare0.9% surtax for high earners$0
Total self-employment tax$0
Where the money goes
Social Security is capped. Medicare is not. It follows every dollar of profit.
Suggested quarterly payments
Self-employment tax only. Federal income tax needs to be added on top of each figure.
Q1Due April 15, 2026$0
Q2Due June 15, 2026$0
Q3Due September 15, 2026$0
Q4Due January 15, 2027$0
Educational estimate only, not tax, legal, or accounting advice. Every situation is different; book a consultation for guidance specific to you.
Assumptions used in this calculator
These are the exact 2026 figures this calculator applies.
- Tax year 2026
- Net earnings factor 92.35%
- Social Security rate 12.4%
- Social Security wage base $184,500
- Medicare rate 2.9%
- Medicare wage ceiling None
- Additional Medicare Tax 0.9%
- Threshold (single $200,000
- Threshold) married filing jointly $250,000
- Threshold (married filing separately $125,000
- Threshold) head of household $200,000
- Quarterly suggestion Annual ÷ 4
How the Additional Medicare Tax is applied: the threshold is reduced by your W-2 wages first, then the 0.9% applies to net self-employment earnings above what is left. The deductible half excludes this surtax, because only the 12.4% and 2.9% portions are deductible. Not modeled: federal income tax, state and local tax, the Section 199A deduction, church-employee income, the optional farm and non-farm methods, and any prior-year safe-harbor calculation. The quarterly figure is a flat annual ÷ 4 and does not account for uneven income or the annualised income installment method.
Why it stings
You are the employee and the employer now
Nothing about self-employment tax is a penalty. It is the same Social Security and Medicare you always paid. You just used to only see half of it.
It comes off profit, not revenue
Every legitimate deduction you claim reduces this tax as well as your income tax. Home office, mileage, supervision, CEUs, professional liability insurance, EHR subscriptions, each one shrinks the base twice over.
Half of it comes back as a deduction
You deduct half of your self-employment tax against income on Form 1040. It does not reduce the SE tax itself, but it does lower your adjusted gross income, which is why the number in the panel above matters to your income tax too.
Related service
If this number surprised you, an S corporation may be the next conversation
An S corporation election splits your profit into a reasonable salary and distributions, and only the salary carries payroll tax. Whether that actually saves you money depends on your profit level, a defensible salary figure, your state, and the added cost of running payroll. Our S Corp Strategy Report runs those numbers in writing rather than in a Facebook group.
Questions, answered
About self-employment tax
Why is self-employment tax 15.3%?
Because you are paying both halves. An employee pays 7.65% in Social Security and Medicare and the employer pays a matching 7.65%. When you work for yourself you are both parties, so you pay the full 15.3%, 12.4% Social Security up to the wage base, and 2.9% Medicare with no ceiling at all.
What is the 92.35% factor?
Self-employment tax is calculated on 92.35% of net profit rather than the whole figure. The 7.65% reduction approximates the employer half of FICA that a W-2 employee never has taxed as income, so the two systems stay roughly comparable. On $140,000 of profit, the tax is computed on $129,290.
How do my W-2 wages affect this?
Wages use up the Social Security wage base first. For 2026 that base is $184,500. If you already earned $150,000 in W-2 wages, only $34,500 of your self-employment earnings face the 12.4% Social Security portion, the rest escapes it. The 2.9% Medicare portion still applies to everything.
What does "deductible half" actually mean?
You deduct half of your self-employment tax as an above-the-line adjustment on Form 1040. That lowers your adjusted gross income and therefore your income tax. It does not reduce the self-employment tax itself. The 0.9% Additional Medicare Tax is excluded from the deductible half.
When are quarterly estimated payments due?
For the 2026 tax year the standard due dates are April 15 2026, June 16 2026, September 15 2026 and January 15 2026. The calculator divides your annual self-employment tax by four as a starting point. Remember to add federal income tax, and state estimates if your state requires them.
Can I reduce my self-employment tax?
Two levers matter most. First, claim every legitimate business deduction, because this tax is computed on profit rather than revenue, our free e-book on overlooked write-offs covers the ones practices routinely miss. Second, consider whether an S corporation election makes sense, since it converts part of your profit into distributions that are not subject to self-employment tax.
Do I owe this if my practice lost money?
No. Self-employment tax applies to net profit. A loss year produces no self-employment tax, and generally no Social Security credits for that year either, which is worth knowing if you are close to qualifying for benefits. If net earnings come to less than $400, no self-employment tax is due.