SE Tax + QBI Deduction Calculator
Calculate your 2026 self-employment tax, the 50% SE tax deduction, and your Section 199A QBI deduction — the three steps every freelancer and sole proprietor needs to know.
SE Tax & QBI Calculator
Enter your net self-employment income and filing status. The QBI deduction is permanent for 2026 under the OBBBA.
How Self-Employment Tax Works in 2026
✓ SE tax rate and QBI deduction rules verified against IRS Publication 334, IRS Schedule SE, and OBBBA guidance — last checked June 2026.
When you work for an employer, they pay half your Social Security and Medicare taxes (FICA) while you pay the other half through payroll withholding. When you're self-employed, you pay both halves yourself — that combined 15.3% is the self-employment (SE) tax. It covers 12.4% for Social Security (on the first $176,100 of net SE income in 2026) and 2.9% for Medicare (on all net SE income, with an Additional Medicare Tax of 0.9% on income above $200,000 single / $250,000 married).
Two deductions partially offset this burden. First, you can deduct 50% of your SE tax from your gross income before calculating federal income tax — this reflects that employers normally deduct their matching contribution as a business expense. Second, most self-employed people qualify for the Section 199A Qualified Business Income (QBI) deduction: 20% of your net self-employment income, further reducing your taxable income. The QBI deduction was made permanent by the One Big Beautiful Bill Act (signed July 4, 2025), with phase-out thresholds raised to $75,000 for single filers and $150,000 for married filing jointly.
2026 SE Tax Key Figures
| Parameter | 2026 Rate / Amount |
|---|---|
| SE tax rate (combined) | 15.3% |
| Social Security portion | 12.4% (on first $176,100) |
| Medicare portion | 2.9% (no wage cap) |
| SE tax deduction | 50% of SE tax from gross income |
| QBI deduction (Section 199A) | 20% of QBI — permanent |
| QBI phase-out starts (single) | $75,000 taxable income |
| QBI phase-out starts (MFJ) | $150,000 taxable income |
| QBI minimum deduction | $400 (if QBI ≥ $1,000, non-SSTB) |
← Swipe to see all columns
Worked Example
Sole proprietor, $80,000 net SE income, single filer, 22% bracket, non-SSTB
Net SE income: $80,000
SE tax (92.35% × 15.3%): $11,305
50% SE tax deduction: $5,653
QBI deduction (20% of $80K): $16,000
Adjusted taxable income: $58,347
Federal income tax @ 22%: $12,836
Total tax (SE + federal): $24,141
Effective rate on gross: ~30.2%The QBI deduction does not reduce your SE tax — it only reduces your federal income tax. SSTBs (Specified Service Trade or Businesses — law, medicine, consulting, financial services, and similar professions) face additional restrictions: if your taxable income exceeds the phase-out threshold, the QBI deduction phases out and is eventually eliminated entirely. A new $400 minimum deduction applies in 2026 for non-SSTB businesses with at least $1,000 in QBI, even if standard calculations would produce less. For a deeper dive into which expenses you can deduct before calculating net SE income, use the Freelancer Tax Deduction Optimizer. For quarterly payment planning, see the Quarterly Estimated Tax Calculator.
Frequently Asked Questions
The self-employment tax rate is 15.3% — 12.4% for Social Security (on the first $176,100 of net SE income) and 2.9% for Medicare (on all net SE income with no cap). An additional 0.9% Medicare surcharge applies on income above $200,000 for single filers.
The Section 199A Qualified Business Income (QBI) deduction allows most self-employed people to deduct 20% of their net business income from taxable income. The One Big Beautiful Bill Act made it permanent starting in 2026 — it was previously set to expire after 2025. Phase-out thresholds were also raised to $75,000 (single) and $150,000 (married filing jointly).
No. The QBI deduction only reduces your federal income tax, not your SE tax. SE tax is calculated on your net self-employment income before the QBI deduction is applied.
A Specified Service Trade or Business (SSTB) includes fields like law, medicine, accounting, consulting, financial services, and performing arts. If your income exceeds the phase-out threshold and you operate an SSTB, your QBI deduction is progressively reduced and eliminated, unlike non-SSTB businesses that retain it at full value below a higher threshold.
Yes. You can deduct half of your SE tax as an above-the-line deduction from your gross income when calculating federal income tax. This reflects the fact that in standard employment, the employer's matching FICA contribution is a deductible business expense.
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