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Free Tax Tool
Estimate your 2026 federal self-employment tax (Social Security + Medicare) and New Jersey Gross Income Tax based on your net self-employment income.
Enter your Schedule C net profit or partnership ordinary income subject to self-employment tax. Do NOT include S-corporation K-1 ordinary business income - it is not subject to SE tax. S-corp owner wages are subject to FICA through payroll, but K-1 pass-through distributions are not.
If you also have a salaried day job, enter Box 5 (Medicare wages). The Additional Medicare Tax threshold ($200,000 single, $250,000 MFJ) is applied to combined SE earnings + W-2 Medicare wages, and the Social Security wage base is reduced by W-2 wages already taxed. Technically the Social Security base is reduced by Box 3 + Box 7 (Social Security wages), which can be lower than Box 5; using Box 5 here can slightly understate the Social Security portion for some high earners above the wage base.
| Net SE Income | Federal SE Tax | Deductible Half | NJ Income Tax (Est.) |
|---|---|---|---|
| $50,000 | $7,065 | $3,533 | ~$1,215 |
| $100,000 | $14,130 | $7,065 | ~$4,180 |
| $184,500 (SS cap) | $26,069 | $13,035 | ~$9,563 |
| $250,000+ | $29,573* | $14,787 | ~$13,735 |
| Additional Medicare (Form 8959), $250,000+ | ~$278** | n/a | n/a |
*Above the $184,500 SS wage base, the Schedule SE tax is just Medicare (2.9%); the Social Security portion stops at the cap. **The 0.9% Additional Medicare Tax (above $200K single / $250K MFJ / $125K MFS) is a separate tax reported on Form 8959, not part of Schedule SE, and you cannot deduct half of it. NJ income tax estimates are for a single filer with the basic NJ personal exemption and no other income. Actual amounts depend on deductions, filing status, and other income sources. Use the contact form for a precise calculation.
Self-employment tax (SE tax) is how self-employed individuals pay the Social Security and Medicare taxes that employees split with their employers. When you are an employee, your employer pays 7.65% and you pay 7.65%, for a total of 15.3%. When you are self-employed, you pay both halves yourself.
For an ordinary nonfarm sole proprietor, Schedule C net profit is generally multiplied by 92.35% to compute Schedule SE line 4a (the 7.65% reduction accounts for the employer-equivalent half of SE tax). The tax rates then apply to the resulting Schedule SE net earnings, subject to the wage-base interaction. For 2026:
To account for the employer-equivalent portion of SE tax, you can deduct 50% of your total SE tax from your gross income as an above-the-line deduction (reducing your AGI). This deduction appears on Schedule 1, Line 15.
The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, made the TCJA individual income tax rates permanent. The 37% top bracket, which was scheduled to revert to 39.6% in 2026, is now the permanent rate. This affects how SE income is taxed at the federal level since your net SE earnings flow through to your personal return at these rates.
Many self-employed individuals in NJ reduce their SE tax burden by electing S-Corp treatment. With an S-Corp, you pay yourself a reasonable W-2 salary (subject to FICA), and additional profits are distributed as S-Corp distributions, which are not subject to SE tax. For high-income earners the gross payroll-tax difference can be substantial, but it is a screening figure - QBI, income-tax, and compliance effects decide the net result, so model the full return.
Curious how much you could save with an S-Corp?
Use the S-Corp Savings Calculator to compare your SE tax burden against what you would pay as an S-Corp, including NJ compliance costs.
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Greg Monaco, CPA replies personally to talk through your situation - filing status, NJ rules, and the moves a calculator can't see. Privacy note: your calculator inputs and results are NOT sent with this form (only your name and email); Greg will ask for the details when he replies. Livingston, NJ; serves all of New Jersey.
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Open toolTax advice disclaimer: This material is for general educational information only and is not legal, tax, or accounting advice for your specific facts. A CPA-client relationship is formed only through a signed engagement letter.