Pennsylvania (PA) Self Employment Tax Calculator
Tax year: 2026 · Last updated 2026-06-22 · Source: IRS
Reviewed by CalcSumly Engineering Team, calculator authors and data architects · 2026-06-22
Your Schedule C net profit (income minus business expenses).
If you also had a job, enter wages already subject to Social Security.
Total tax (federal SE + PA income tax)
$13,760
Combined effective rate 17.2% of net profit · 2026 tax year
You owe about $11,304 in federal SE tax and $2,456 in Pennsylvania income tax — a combined $13,760. You can deduct $5,652 from federal income tax.
How this Pennsylvania self-employment tax calculator works
This calculator estimates your total tax on self-employment income in Pennsylvania for 2026. It combines two distinct layers of tax:
- Federal self-employment tax (Schedule SE) — 15.3% on 92.35% of your net profit, split between Social Security (12.4%, capped at the $184,500 wage base) and Medicare (2.9%, no cap). An extra 0.9% Additional Medicare applies above $200,000 (single) or $250,000 (MFJ). The deductible half — 50% of the base SE tax — is then subtracted from your gross income to arrive at federal AGI.
- Pennsylvania state income tax — Pennsylvania taxes gross compensation at a flat 3.07%. Pre-tax 401(k) deferrals do NOT reduce Pennsylvania taxable compensation (PA does not recognize the federal standard deduction or traditional 401(k) exclusion for state purposes).
Step-by-step calculation
- Net earnings: Net profit × 92.35% = SE tax base.
- Federal SE tax: Social Security + Medicare + Additional Medicare (if applicable).
- Deductible half: ½ × (Social Security + Medicare) — deducted above the line on Form 1040.
- Federal AGI from SE: Net profit − deductible half.
- Pennsylvania taxable income: Net profit (PA taxes gross compensation; the SE deductible half does not reduce PA taxable income).
- Pennsylvania income tax: Flat 3.07% applied to Pennsylvania taxable income.
Scope and limitations
What is excluded: Excludes Pennsylvania local Earned Income Tax (EIT), which varies by municipality (typically 1–3%). SDI is not applicable in Pennsylvania. This calculator models a single Schedule C filer with no other income sources. It does not include QBI deduction (20%), health insurance deductions, retirement plan contributions, tax credits, or itemized deductions. Consult a tax professional for your full return.
Use this for planning, not filing. Every rate and threshold is pulled from official IRS, SSA, and PA Dept. of Revenue — Personal Income Tax Rates (3.07%, stable since 2004) publications and re-checked each January.
Sources
- IRS — Self-Employment Tax (Schedule SE)
- SSA — 2026 Social Security wage base ($184,500)
- IRS — Topic 751 Additional Medicare Tax
- IRS — Rev. Proc. 2025-32 (2026 inflation adjustments)
- IRS — Form 1040-ES (Estimated Tax for Individuals)
- IRS Notice 2025-67 — 2026 Retirement Plan Limits (§415, §402(g), §401(a)(17))
- IRS — SEP Contribution Limits 2026 ($72,000)
- IRS Notice 2026-10 — 2026 Standard Mileage Rates (72.5 cents/mile)
- IRS Rev. Proc. 2013-13 — Home Office Simplified Method ($5/sqft, 300 sqft max)
- IRS Publication 946 (2026) — Section 179 Deduction ($2,560,000 limit; $32,000 SUV cap)
- PA Dept. of Revenue — Personal Income Tax Rates (3.07%, stable since 2004)
- PA Dept. of Revenue — Deductions and Credits (no standard deduction; limited deductions only)
- PA Dept. of Revenue — Personal Income Tax Guide
Frequently asked questions
What is Pennsylvania's income tax rate on self-employment income?+
Pennsylvania has a flat 3.07% income tax on 'compensation,' which includes net profit from self-employment. Unlike most states, Pennsylvania does not allow a standard deduction, and it taxes gross income (not AGI). This means the deductible half of SE tax that reduces your federal AGI does NOT reduce your Pennsylvania taxable income. Every dollar of SE net profit is taxed at 3.07%. Source: Pennsylvania Department of Revenue.
Does the deductible half of SE tax reduce Pennsylvania taxes?+
No. This is a critical distinction for PA self-employed people. Pennsylvania taxes 'gross compensation' and does not start from federal AGI. The deductible half of SE tax reduces federal income tax (and most states' income tax), but it has no effect on Pennsylvania income tax. Your PA tax base is your full net profit from Schedule C.
Does Pennsylvania have a local Earned Income Tax on self-employment income?+
Yes. Pennsylvania municipalities and school districts levy an Earned Income Tax (EIT) of typically 1%–3% on net profit from self-employment. EIT is collected locally (not by the PA Department of Revenue) and is not included in this calculator. The combined PA state (3.07%) plus local EIT can make Pennsylvania's effective rate on SE income higher than the flat 3.07% alone. Check your local EIT rate at dced.pa.gov.
What is self-employment tax?+
Self-employment (SE) tax is the Social Security and Medicare tax paid by freelancers, 1099 contractors, and sole proprietors. Employees split these costs with their employer (7.65% each); when you work for yourself you pay both halves — 15.3% total — on 92.35% of your net profit. It is separate from, and on top of, federal and state income tax.
Do I also owe Pennsylvania state income tax on my self-employment income?+
Yes. In addition to federal SE tax, Pennsylvania taxes self-employment net profit as ordinary income. This calculator shows both: the federal SE tax (Social Security + Medicare) and the estimated Pennsylvania state income tax side by side, so you can see your true combined tax bill.
Can I deduct half of my self-employment tax?+
Yes — from federal income tax. You can deduct one half of your Social Security and Medicare SE tax as an above-the-line adjustment to income on Form 1040. This deductible half also reduces your federal AGI, which in turn reduces your state taxable income in most states (except Pennsylvania, which taxes gross compensation regardless).
How can I lower my self-employment tax?+
SE tax is based on net profit (gross revenue minus business expenses), so every legitimate business deduction reduces both your SE tax and your state income tax. Common deductions include home-office use ($5/sqft simplified method), equipment and software (Section 179), business mileage, and professional services. The standard deduction and QBI deduction reduce income tax only — not SE tax.
When do I pay self-employment tax?+
SE tax is paid through quarterly estimated payments (Form 1040-ES), due April 15, June 16, September 15, and January 15 for the prior year's fourth quarter. If you expect to owe $1,000 or more in federal tax after withholding, you generally must pay quarterly to avoid the IRS underpayment penalty. Most states that tax SE income have parallel quarterly estimated payment requirements.
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