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How Self-Employment Tax Works in California (2026)
Self-employment tax is 15.3% — 12.4% Social Security plus 2.9% Medicare — applied to 92.35% of your net self-employment income, on top of federal and California income tax. Half of the SE tax (7.65% equivalent) is an above-the-line deduction against your federal taxable income.
| Piece | Rate / rule |
|---|---|
| Net earnings subject to SE tax | 92.35% of net profit |
| Social Security portion | 12.4% (up to $184,500 of net earnings) |
| Medicare portion | 2.9% · +0.9% above $200,000 |
| Deductible half of SE tax | 50%, above-the-line on your federal return |
Estimated payments are due quarterly (roughly mid-April, mid-June, mid-September, and mid-January). The 20% Qualified Business Income deduction (§199A) is not modeled here — it depends on your income level and business type. If you also have W-2 wages, the Social Security cap is measured against your combined earnings, so this estimate runs high.
California Self-Employment Tax by Income (2026)
Single filer, 1099 income is the only earnings for the year. The quarterly figure is an even 4-way split of the annual total.
| Net 1099 income | SE tax | Federal tax | California tax | Quarterly payment |
|---|---|---|---|---|
| $20,000 | $2,826 | $249 | $147 | $805 |
| $40,000 | $5,652 | $2,281 | $623 | $2,139 |
| $60,000 | $8,478 | $4,511 | $1,538 | $3,632 |
| $80,000 | $11,304 | $7,527 | $2,875 | $5,426 |
| $100,000 | $14,130 | $11,616 | $4,551 | $7,574 |
California Self-Employment Tax FAQ
How much is self-employment tax in California?
15.3% federal SE tax on 92.35% of net profit (12.4% Social Security up to $184,500, 2.9% Medicare), plus California income tax on net profit (1.00%-13.30% brackets), plus federal income tax. Half the SE tax is deductible federally. California self-employed people are generally exempt from California SDI unless they opt in.
Do I owe California estimated taxes as a 1099 worker?
Yes - California requires quarterly estimated payments once your unpaid state tax passes its threshold (check the California Franchise Tax Board), and California front-loads them (30% Q1, 40% Q2, 0% Q3, 30% Q4) rather than four equal payments. The federal rule is $1,000 of expected tax.
Does California allow the QBI deduction?
No. California does not conform to the federal 20% Qualified Business Income deduction, so your full net profit is taxed for California purposes. The federal QBI deduction is not modeled here.
Methodology & Source
California state tax figures sourced from California Franchise Tax Board (https://www.ftb.ca.gov/forms/2025/2025-540-tax-rate-schedules.pdf), citing Cal. Rev. & Tax. Code § 17041 — 9-bracket schedule (1%-12.3%) plus 1% Mental Health Services Tax on taxable income over $1,000,000 (top effective rate 13.3%). Thresholds are the 2025 FTB Schedule X figures (2026 schedule not yet published at time of verification).. Federal brackets, standard deductions (single/MFJ/HoH), and FICA constants sourced from the IRS (Revenue Procedure 2025-32; married-filing-jointly Additional Medicare threshold of $250,000 is a separate, unindexed statutory figure). California's married-filing-jointly and head-of-household figures are not yet independently verified and currently fall back to single-filer brackets — see the caveat in the formula section above.
Self-employment tax uses the statutory 15.3% rate (12.4% Social Security + 2.9% Medicare) on 92.35% of net self-employment income, with half of the SE tax deducted from federal taxable income above-the-line — per IRS Schedule SE (Form 1040) instructions, IRC §1401 and §164(f), 2026 edition. The 20% Qualified Business Income deduction (IRC §199A) is not modeled — it phases out by income and business type and is too state/entity-dependent to compute generically. This assumes the self-employment income is your only earnings for the year; if you also have W-2 wages, the Social Security wage-base cap and Additional Medicare threshold are actually based on your combined earnings, so this will overstate SE tax if you have significant wage income too.
This is an estimate based on standard single-filer federal, FICA, CA state tax, and CA SDI calculations. Actual withholding may differ based on your W-4/DE 4 elections, pre-tax deductions (401k, health insurance), and other factors. CA's exact 2026 bracket thresholds are inflation-indexed and finalized by the FTB in late 2026 — this page uses the most recently projected figures and will be updated once finalized.
Pre-tax deductions assumption: HSA and health insurance premium contributions are assumed to also reduce the California SDI wage base, consistent with their FICA wage treatment. This is a reasonable default, not independently verified against California's specific California SDI statute.
Guideline version: 2026-CA-v2 · Effective: 2026-01-01 · Last verified: 2026-08-18