How Creators Self-employment tax math (2026)
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How it works
- Base = net earnings × 92.35%
- If base < $400: formula yields $0
- Social Security = min(base, $184,500 − W-2 SS wages) × 12.4%
- Medicare = base × 2.9%
- Total = SS + Medicare. The IRS lets one-half of SE tax be deducted when figuring AGI (shown for reference).
Methodology & sources
Rates, 92.35%, $400 rule and half-deduction: IRS Topic 554 (official, page updated Sept 24, 2026). Wage base: SSA Contribution and Benefit Base (official). Not modeled: Additional Medicare Tax (0.9% above thresholds), farm/optional methods, church employee income.
- SSA: Contribution and Benefit Base ($184,500 for 2026; 12.4% / 2.9% SE rates)
- IRS Topic 554: Self-employment tax
- IRS: Self-employment tax (Social Security and Medicare)
- IRS Schedule SE (Form 1040)
MATH ONLY. NOT TAX ADVICE. This shows the published federal SE tax formula and nothing else. It ignores Additional Medicare Tax, optional methods, income tax, state taxes, and your personal situation. Consult a qualified tax professional. Last checked Oct 2026.
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FAQ
What is the self-employment tax rate?
Per IRS Topic 554, 12.4% for Social Security plus 2.9% for Medicare, applied generally to 92.35% of net earnings from self-employment.
What is the 2026 Social Security wage base?
$184,500, per the Social Security Administration.
Is there a minimum?
IRS Topic 554 says you usually must pay SE tax if net earnings from self-employment are $400 or more.