Alabama self-employment tax 2026

With $68,000 of self-employment profit in Alabama, a single filer owes about $9,608 in self-employment tax for 2026 and should set aside about $4,147 each quarter.

Updated Oct 29, 2026·By the BooksGPT team·2026 rates

Self-employment tax · 2026

Quarterly payments

$9,608for the year

15.3% on 92.35% of your profit

Where your $68,000 of profit goes

You keep$51,413

Social Security$7,787

Medicare$1,821

Federal income tax$4,273

Alabama income tax$2,706

Income tax

$6,979

Total tax

$16,587

Each quarter

$4,147

Quarterly estimated payments for 2026

Apr 15, 2026Covers Jan 1 to Mar 31

$4,147

Jun 15, 2026Covers Apr 1 to May 31

$4,147

Sep 15, 2026Covers Jun 1 to Aug 31

$4,147

Jan 15, 2027Covers Sep 1 to Dec 31

$4,147

Equal amounts to set aside, not a bill.

Self-employment tax in Alabama

Self-employment tax: 15.3%
Wage base: $184,500
Extra Medicare: 0.9%
Owed from: $400
Business income deduction: 20%
Alabama income tax: 2% to 5%

How we work it out

1
Net earnings
Your profit times 92.35%.
2
Social Security
12.4% on net earnings up to $184,500, less W-2 wages.
3
Medicare
2.9% on all net earnings, plus 0.9% over $200,000.
4
Income tax
After half your self-employment tax and the 20% business income deduction.
5
Quarterly estimate
Self-employment tax plus income tax on the profit, split in four.

Self-employment tax questions

How much self-employment tax do I owe on $68,000 of profit?

About $9,608 for 2026, made of $7,787 for Social Security and $1,821 for Medicare. Half of it, $4,804, comes off your income before income tax.

What is the self-employment tax rate for 2026?

15.3% on 92.35% of your net profit: 12.4% for Social Security on up to $184,500 and 2.9% for Medicare on all of it. Above $200,000 for single filers, another 0.9% Medicare applies.

When are 2026 estimated tax payments due?

Apr 15, 2026, Jun 15, 2026, Sep 15, 2026, and Jan 15, 2027. Each payment covers the months before it.

I also have a W-2 job. Does that change my self-employment tax?

Yes. Social Security stops at $184,500 of combined earnings, and your job's wages count first. Add your W-2 wages in the calculator to see the difference.

Does Alabama tax self-employment income?

Yes. Alabama taxes your profit as income at 2% to 5%.

Sources