Self-employment tax 2026: what gig drivers pay, explained

The rate

For 2026 it’s 15.3% in all. That’s 12.4% for Social Security and 2.9% for Medicare.

At a job, your employer pays half and takes the other half out of your pay. On your own, you pay both halves.

Not on all your pay. It’s worked out on your net earnings, which are 92.35% of your profit.

Profit is your pay and tips, minus business costs like miles.

It starts once net earnings reach $400 for the year. The Social Security part stops at $184,500 of earnings for 2026, counting any job’s pay first.

Say your profit for 2026 is $10,000. Your net earnings are $9,235, and the self-employment tax is about $1,413.

That’s before income tax, which is worked out on its own.

Anything that lowers your profit: business miles and costs.

50% of the tax also comes off your income before income tax is worked out. That lowers your income tax, not this one.

The standard deduction and the tips deduction lower income tax only. Self-employment tax still applies to the profit from tips.

It’s paid with your income tax: during the year on the four due dates, then settled when you file.

At tax time it’s worked out on Schedule SE, a page added to your return.

The figures here are for the 2026 tax year, from IRS documents. Tax rules change from year to year.

The free calculator shows how much of each payout to set aside for your year, with the math. No sign-up.