To calculate your 2026 self-employment tax, follow these four steps:
- Find Net Profit: Subtract business expenses from gross income (Schedule C).
- Apply 92.35% Multiplier: Multiply net profit by 0.9235 to find taxable earnings.
- Calculate 15.3% Tax: Multiply that result by 0.153.
- Wage Cap Check: Only the first $184,500 is subject to the 12.4% Social Security portion.
