Two tax bills
Self-employment in Oregon pays twice
As a W-2 worker, your employer splits FICA with you — you pay 7.65%, they pay the other half. Self-employed, you are both worker and employer, so you pay the full 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of your net profit — the IRS's adjustment that approximates the half of your wages that would have been the employer's share. Then, on top of that, you owe federal income tax and Oregon income tax on your profit, just like anyone else.
This calculator models the full 2026 picture: the 15.3% SE tax, the deduction of half of it from income, federal brackets, and Oregon's actual withholding formula — including the federal tax subtraction and the state standard deduction.
The bill by profit
Oregon self-employment tax by net profit
Single filer, no dependents, no deductions beyond the SE-tax deduction and standard amounts, 2026:
| Net profit | SE tax 15.3% | Federal | Oregon | Total tax | You keep | Effective |
|---|---|---|---|---|---|---|
| $40,000 | $5,652 | $2,281 | $2,942 | $10,875 | $29,126 | 27.2% |
| $80,000 | $11,304 | $7,527 | $5,931 | $24,762 | $55,238 | 31.0% |
| $120,000 | $16,955 | $15,705 | $9,184 | $41,844 | $78,156 | 34.9% |
| $160,000 | $22,607 | $24,421 | $12,676 | $59,704 | $100,296 | 37.3% |
The SE tax is the stubborn floor — it is paid on the first dollar of profit and never phased out by deductions. That is why effective rates run 27% to 37% here, far above the W-2 worker at the same gross. Married filing jointly cuts the income-tax piece: at $80,000, Oregon drops to about $5,358 and federal to about $4,562.
The half deduction
How the self-employment tax deduction works
Half of your self-employment tax is deductible "above the line" — it reduces your income-tax base for both federal and Oregon, but not the SE tax itself. On $80,000 of profit, the $5,652 half-deduction lowers taxable income, saving roughly $1,700 across federal and Oregon at these rates. The calculator applies it automatically; if you itemize or claim other adjustments, your numbers shift.
The FICA caps
Social Security cap and additional Medicare
The 12.4% Social Security piece of the SE tax stops at $184,500 of self-employment income in 2026 — above that, only the 2.9% Medicare portion continues. If your profit is near the cap, the marginal cost of extra income drops sharply. Additional Medicare of 0.9% applies above $200,000 single / $250,000 married, calculated on combined wages and self-employment income.
Oregon for the self-employed
Oregon income tax on your profit
Oregon treats self-employment income the same as wages for income-tax purposes: your profit is taxed at 4.75% to 9.9% after the federal tax subtraction and the $2,910 / $5,820 state standard deduction, with the $263-per-allowance credit. There is no special self-employment bracket in Oregon — but there is also no sales tax on the services you sell, and the Oregon kicker can refund a share of your state tax if state revenue overperforms.
Quarterly reality
Estimated payments and Paid Leave opt-in
Unlike W-2 workers, the self-employed have no employer withholding — the IRS and Oregon both expect estimated quarterly payments, typically due in April, June, September and January. Plan for roughly 30% to 35% of profit in cash for taxes. One optional extra: self-employed Oregonians may opt in to Paid Leave Oregon and pay the 0.6% contribution themselves — worthwhile if you plan to use family or medical leave, but it is not automatic and is not included in this calculator's income-tax estimate.