Income Tax Calculator vs Self-Employment Tax Calculator (2026 Tax Year)

For 2026, the standard deduction is $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household. These amounts are adjusted annually for inflation.

Your marginal rate is the tax rate on your last dollar of income (your highest bracket). Your effective rate is the average rate across all income, which is always lower than the marginal rate.

The self-employment tax rate is 15.3% of net self-employment earnings, made up of 12.4% for Social Security and 2.9% for Medicare, and it applies to 92.35% of your net earnings rather than the full amount. That 92.35% adjustment exists because a traditional employee's payroll tax is split evenly between employee and employer, and the IRS lets self-employed filers approximate the same treatment by deducting the employer-equivalent half before calculating the tax base. For tax year 2026 (IRS Revenue Procedure 2025-32), the 12.4% Social Security portion applies only up to the $184,500 wage base, while the 2.9% Medicare portion applies to all self-employment income with no ceiling. A freelancer with $80,000 in net self-employment income owes roughly $11,300 in SE tax before any deductions — a substantial bill that quarterly estimated payments are designed to spread out rather than owe as one lump sum in April.

Yes — you can deduct half of your self-employment tax, the portion that mirrors what an employer would otherwise pay, as an above-the-line adjustment when calculating your adjusted gross income. This deduction is available whether or not you itemize, and it directly lowers the income your federal tax bracket is applied to, though it does not reduce the self-employment tax itself. For example, a filer who owes $11,000 in total SE tax can deduct $5,500 from their gross income before their income tax bracket is calculated. This calculator applies that deduction automatically when estimating your total tax liability, so the number you see already reflects the lower, adjusted taxable income rather than requiring you to subtract it yourself. Keep track of this deduction separately from business expense deductions — it's calculated from the SE tax itself, not from your revenue or costs.