Texas Self-Employment Tax Calculator (2026)
A focused look at Schedule SE: Social Security (12.4%) + Medicare (2.9%) on 92.35% of your net earnings, with the deductible-half adjustment and additional Medicare 0.9% above the filing-status threshold.
Self-employed Texans pay both halves of FICA (15.3% combined) on 92.35% of net earnings. Half is deductible above-the-line. Set aside ~25–30% for taxes if you have no other withholding.
Step-by-step: how SE tax is computed
- Start with net SE income (Schedule C line 31 or equivalent).
- Multiply by 92.35% to get SE-taxable earnings.
- Apply 12.4% Social Security up to the wage base, reduced by any W-2 wages already taken there.
- Apply 2.9% Medicare on all SE-taxable earnings (no cap).
- Add 0.9% additional Medicare on combined wages above $200k single / $250k joint.
- Sum is your SE tax. Half (the SS + Medicare portion only, not the additional 0.9%) is deductible on Schedule 1.
Why this matters in Texas specifically
Because Texas has no state income tax, the SE tax bill is your entire “state-and-payroll” layer as a freelancer. Texans moving from California, Oregon, or New York often discover their SE tax math is identical (it’s federal), but they no longer owe a state return on top — a meaningful cash-flow win.
Texas also doesn’t have a state‑equivalent of CA’s Mental Health Services Tax (1% above $1M), Oregon’s Statewide Transit Tax (0.1%), or New York’s MCTMT for self-employed workers in the metropolitan commuter region. None of those apply once you’re a Texas resident with Texas-sourced income.
Frequently asked questions
Is self-employment tax the same as 1099 tax?
Self-employment tax is one part of what 1099 contractors owe. SE tax (15.3%) is the FICA equivalent paid on 92.35% of net SE earnings. On top of that, federal income tax applies to your net SE income (with the deductible half of SE tax subtracted). Our 1099 calculator shows the full picture; this page focuses on the SE tax mechanics.
What if I have a W-2 job and 1099 income on the side?
Social Security wages from your W-2 count toward the wage base — so if your W-2 is already above the projected $178,500 SS limit, your SE income owes only the 2.9% Medicare portion (plus 0.9% additional Medicare above thresholds), not the full 15.3%. Enter your W-2 wages in the calculator to see the corrected SE tax.
How is the 'deductible half' calculated?
It's half of your Social Security + Medicare SE tax (not including the 0.9% additional Medicare surtax). Mechanically, that's 7.65% × (net SE earnings × 92.35%). You deduct it above-the-line on Schedule 1 of your 1040, which lowers your taxable income — but not your SE tax itself.
Are there ways to lower SE tax?
Two big levers: (1) maximize legitimate business expenses to reduce net earnings — every $1,000 in deductions saves ~$153 of SE tax plus your marginal income tax. (2) Elect S-corp tax treatment once your net hits roughly $80k–$100k, paying yourself a reasonable W-2 salary and taking the rest as distributions, which aren't subject to SE tax.