Self-Employment & QBI Calculator (2026)
Self-employed owners pay the full 15.3% SE tax, but the OBBBA made the 20% Section 199A deduction permanent and widened its phase-in range. This tool separates the payroll-tax hit from the income-tax savings and shows where the SSTB phase-out begins.
Not tax, legal, or financial advice
FiscTalk provides general educational information from public sources. Tax outcomes depend on your full facts, filing history, and jurisdiction-specific rules that change yearly. Before filing or making decisions, consult a licensed CPA, EA, or attorney. FiscTalk is not a fiduciary and is not affiliated with the IRS or any state agency.
Sources & methodology
- IRS — Tax inflation adjustments for tax year 2026 (Rev. Proc. 2025-32) — Internal Revenue Service
- IRS Pub. 15 (Circular E), Employer’s Tax Guide 2026 — Social Security wage base $184,500 — Internal Revenue Service
- IRS Pub. 15-T (2026), Federal Income Tax Withholding Methods — Internal Revenue Service
- IRS Form 1041-ES (2026) — capital gains rate thresholds — Internal Revenue Service
- OBBBA (One Big Beautiful Bill Act), Pub. L. 119-21 — SALT, estate, QBI, QSBS, senior deduction — Internal Revenue Service
What this tool does
How to use it
- 1Select the tax year and filing status.
- 2Enter net business profit from Schedule C (or 1099 income) — SE tax is computed on 92.35% of this.
- 3Add W-2 wages from a job, wages paid to employees, and qualified property if the QBI limits matter for your structure.
- 4Toggle "service business (SSTB)" if you provide services — this triggers the phase-in check.
- 5Read the result cards for SE tax, QBI deduction, income tax on the business, and your effective vs marginal rate.
Worked examples
Run the same scenario through the calculator above to verify every number — they come from the same sourced dataset.
Sole proprietor, $30,000 net profit, single filer
Freelancer, $80,000 net profit, single filer
Consultant, $200,000 net profit, single filer (SSTB)
What this tool does not cover
- State income tax on the business is not included.
- The model assumes Schedule C net profit; S-corp wage/owner-draw elections need separate planning.
- SSTB phase-in depends on taxable income, not just business profit — enter total income accurately.
Common questions
How much is self-employment tax in 2026?
The self-employment tax rate is 15.3% — 12.4% for Social Security and 2.9% for Medicare — applied to 92.35% of your net earnings. An additional 0.9% Medicare surtax applies above $200,000 (single) or $250,000 (joint).
What is the QBI deduction?
Section 199A lets pass-through owners deduct 20% of qualified business income. The OBBBA made the deduction permanent, with phase-in for service businesses (SSTBs) starting at $201,750 of taxable income (single) in 2026.
Do I pay both self-employment tax and income tax on 1099 income?
Yes. 1099 income is subject to the 15.3% self-employment tax AND regular income tax, minus the QBI deduction and the deductible half of SE tax. That is why a contractor rate usually needs to exceed the equivalent W-2 salary.
Can I deduct half of my self-employment tax?
Yes. The employer-equivalent half (7.65%) is an above-the-line deduction against income, which reduces both income tax and QBI math — the calculator applies this automatically.