Question 1

How much is self-employment tax?

Accepted Answer

Self-employment tax is 15.3% of 92.35% of your net self-employment earnings. This breaks down to 12.4% for Social Security (capped at $174,900 in 2026) and 2.9% for Medicare (no cap). If you earn over $200,000 ($250,000 married), you also pay an additional 0.9% Medicare tax.

Question 2

Do freelancers pay more taxes than employees?

Accepted Answer

Yes — freelancers pay the full 15.3% self-employment tax, while W2 employees only pay 7.65% (the employer covers the other half). However, freelancers can deduct half of their SE tax from their income, and have access to additional deductions like the home office deduction and retirement contribution deductions.

Question 3

When are quarterly estimated tax payments due?

Accepted Answer

Quarterly estimated tax payments for 2026 are due: April 15, June 15, September 15, and January 15 (of the following year). If you don't pay estimated taxes and owe more than $1,000, the IRS charges an underpayment penalty.