Free tool · US and Canada · 2026
Self-employment tax calculator
Work out the Social Security and Medicare you owe on your business profit in the US, or the CPP (or QPP) you pay as a self-employed Canadian, and what to set aside each quarter. Runs in your browser; nothing is saved.
Your business income
Where do you file?
Income minus business expenses, for the whole year.
Wages that already had Social Security taken off use up part of the $184,500 limit.
Self-employment tax for 2026
Net earnings from self-employment
92.35% of net profit
$55,410.00
Social Security (12.4%)
On $55,410.00 (2026 limit $184,500, less W-2 wages)
$6,870.84
Medicare (2.9%)
On all net earnings
$1,606.89
Self-employment tax (Schedule SE)
$8,477.73
Deduction for half of SE tax
Schedule 1, line 15: lowers your income tax, not the SE tax
$4,238.87
A quarter of it, per estimated payment
Add your income tax to get the full payment
$2,119.43
2026 rates: Social Security wage base $184,500; the 0.9% thresholds are not indexed. Church employee income, farm optional methods and the Social Security limit shared with railroad pay are not covered. An estimate, not tax advice.
US self-employment tax: how it is worked out
- Start with net profit from Schedule C (or Schedule F, or your share from a partnership).
- Multiply by 92.35% to get net earnings from self-employment. If that is under $400, there is no SE tax.
- Social Security: 12.4% on net earnings up to $184,500 for 2026, less any W-2 wages that already had Social Security taken off.
- Medicare: 2.9% on all net earnings.
- Additional Medicare Tax: 0.9% on net earnings above $200,000 (single, head of household), $250,000 (married filing jointly) or $125,000 (married filing separately), less any wages. Reported on Form 8959.
- Deduct half of the SE tax (not the 0.9%) on Schedule 1.
Worked example: $50,000 of profit × 92.35% = $46,175. Social Security 12.4% = $5,725.70; Medicare 2.9% = $1,339.08; SE tax $7,064.78. Half, $3,532.39, is deducted from income. SE tax comes on top of income tax.
2026 estimated tax due dates (Form 1040-ES)
| Income earned | Payment due |
|---|---|
| January 1 to March 31, 2026 | April 15, 2026 |
| April 1 to May 31, 2026 | June 15, 2026 |
| June 1 to August 31, 2026 | September 15, 2026 |
| September 1 to December 31, 2026 | January 15, 2027 |
You generally must make estimated payments if you expect to owe $1,000 or more for the year after withholding and credits. Each payment covers both income tax and SE tax. Missing the fourth one? Read about the January 2027 estimated payment.
Canada: CPP and QPP on self-employment income
An employee and employer each pay half of the CPP. When you are self-employed you are both, so you pay both halves, on net business income from form T2125. It is calculated on Schedule 8 of your T1 return and paid with your income tax.
| 2026 | Rate | On income | Maximum |
|---|---|---|---|
| CPP (base and first additional) | 11.9% | $3,500 to $74,600 | $8,460.90 |
| CPP2 (second additional) | 8% | $74,600 to $85,000 | $832.00 |
| Quebec: QPP | 12.6% | $3,500 to $74,600 | $8,958.60 |
| Quebec: QPP2 | 8% | $74,600 to $85,000 | $832.00 |
| Quebec: QPIP, self-employed | 0.764% | Up to $103,000 | $786.92 |
Worked example: $50,000 of net self-employment income. ($50,000 − $3,500) × 11.9% = $5,533.50 of CPP. Of that, $3,231.75 is deducted on line 22200 and $2,301.75 earns the non-refundable credit on line 31000. If you also had a job, the CPP your employer deducted reduces what you owe; Schedule 8 handles the overlap. EI is optional for the self-employed (for special benefits only) and not included here.
CRA instalment due dates for 2026
- March 15, 2026 (paid by Monday, March 16)
- June 15, 2026
- September 15, 2026
- December 15, 2026
Instalments are required when your net tax owing is more than $3,000 ($1,800 in Quebec) for 2026 and for either 2025 or 2024. They cover income tax and CPP together. More on form T2125.
Sources
- SSA: Contribution and benefit base (2026: $184,500)
- IRS: Self-employment tax (Social Security and Medicare taxes)
- IRS: Questions and answers for the Additional Medicare Tax
- IRS Form 1040-ES (2026), Estimated Tax for Individuals
- CRA: CPP contribution rates, maximums and exemptions (2026)
- Revenu Québec: Maximum pensionable earnings and QPP contribution rate
- Revenu Québec: Maximum insurable earnings and QPIP premium rate
- CRA: Required tax instalments for individuals
- CRA: Line 22200, deduction for CPP or QPP contributions on self-employment income
As of October 25, 2026.
Questions
What is the self-employment tax rate for 2026?
15.3% on net earnings from self-employment: 12.4% for Social Security on up to $184,500 and 2.9% for Medicare on all of it. Net earnings are 92.35% of your net profit, so the effective rate on profit is about 14.13%. A further 0.9% Additional Medicare Tax applies above $200,000 ($250,000 married filing jointly, $125,000 married filing separately).
Why is self-employment tax only on 92.35% of profit?
An employee's Social Security and Medicare are worked out on wages before the employer's 7.65% share. To match, Schedule SE takes 7.65% off your profit first (100% − 7.65% = 92.35%) before applying the 15.3% rate.
Can I deduct self-employment tax?
Half of it. The deduction for half of SE tax goes on Schedule 1 and lowers your adjusted gross income, so it reduces your income tax. It does not reduce the SE tax itself, and the 0.9% Additional Medicare Tax is not part of it.
Do I pay self-employment tax if I also have a job?
Yes, but Social Security wages from the job count toward the $184,500 limit first, so you pay the 12.4% only on the room that is left. Medicare's 2.9% applies to all of your self-employment earnings regardless.
How much CPP do self-employed people pay in Canada?
Both halves: 11.9% of net self-employment income between $3,500 and $74,600 in 2026 (a maximum of $8,460.90), plus 8% CPP2 on income between $74,600 and $85,000 (a maximum of $832), for up to $9,292.90. You pay it with your income tax return, worked out on Schedule 8.
Is self-employed CPP deductible?
Partly. The employer half and the enhanced part of your own half are deducted on line 22200. The base part of your own half (4.95% of pensionable income for CPP) earns a non-refundable tax credit on line 31000 instead.
When are estimated tax payments due?
For the 2026 tax year in the US: April 15, June 15 and September 15, 2026, and January 15, 2027. In Canada, CRA instalments for individuals are due March 15, June 15, September 15 and December 15, if your net tax owing is more than $3,000 ($1,800 in Quebec) in 2026 and in either 2025 or 2024.
Embed this calculator on your site
Free for blogs, bookkeepers, accountants and associations. Paste this HTML where you want the calculator to appear. It runs on our page inside a frame, so nothing your visitors type reaches your site or ours. Please keep the credit link.
Related
- All free tools
- Mileage calculator: business driving lowers your profit
- Employee cost calculator
- Owner draws vs contributions
- Depreciation and CCA calculator
General information, not tax advice. Your actual tax depends on your whole return; confirm with the IRS, the CRA, Revenu Québec or your accountant.
Get started
Know your profit before the tax bill does.
AcboBooks keeps your income and expenses straight all year, on your own PC. Bought once.
No card. No account. Nothing to cancel.