Self-Employment Tax in Wisconsin (2026)
Federal Self-Employment Tax (Applies to All States Including WI)
The federal self-employment tax is 15.3% on the first $168,600 of net SE income (2024), composed of 12.4% Social Security and 2.9% Medicare. Above $168,600, the 2.9% Medicare portion continues. An additional 0.9% Medicare surtax applies to SE income over $200,000 (single) or $250,000 (married joint).
Self-employed individuals can deduct half of their SE tax (7.65%) from gross income before calculating federal and state income tax.
Wisconsin State Income Tax on Self-Employment Income
Self-employed Wisconsin residents pay state income tax on net earnings at up to 7.65%. Wisconsin has no gross receipts tax. The Wisconsin business development tax credit and other small business credits can reduce effective rates for qualifying businesses.
In Wisconsin, net self-employment income is taxed as ordinary income at up to 7.65% (graduated rate system).
Quarterly Estimated Tax Payments for Wisconsin Self-Employed
Self-employed Wisconsin residents typically must make quarterly estimated tax payments to both the IRS (due Apr 15, Jun 15, Sep 15, Jan 15) and the Wisconsin Department of Revenue. Underpayment can trigger penalties.
Deductions Available to Wisconsin Self-Employed
- Half of federal SE tax (7.65%) — deductible above-the-line on federal return
- Home office deduction (if qualifying dedicated workspace)
- Health insurance premiums (100% deductible for self-employed if not eligible for employer plan)
- SEP-IRA or Solo 401(k) contributions — up to 25% of net SE income
- Business expenses: equipment, software, vehicle mileage (67 cents/mile in 2024), professional fees
Frequently Asked Questions
What taxes do self-employed people pay in Wisconsin?
Self-employed Wisconsin residents pay: (1) federal self-employment tax of 15.3% on net SE income up to $168,600; (2) federal income tax on net earnings; and (3) Wisconsin state income tax at up to 7.65%. Self-employed Wisconsin residents pay state income tax on net earnings at up to 7.65%. Wisconsin has no gross receipts tax. The Wisconsin business development tax credit and other small business credits can reduce effective rates for qualifying businesses.
What is the self-employment tax rate in 2026?
The federal SE tax rate is 15.3% on the first $168,600 of net self-employment income (2024). Above that, only the 2.9% Medicare portion continues. An additional 0.9% Medicare surtax applies above $200,000 (single). This applies to all self-employed individuals regardless of state, including Wisconsin.
Can I deduct the self-employment tax in Wisconsin?
Yes. Half of your federal SE tax (7.65%) is deductible as an above-the-line deduction on your federal return, reducing your federal and state taxable income. In Wisconsin, this deduction also reduces your state taxable income, saving you up to 7.65% of the deducted amount.
Do I need to make quarterly estimated tax payments in Wisconsin?
Yes, if you expect to owe more than $1,000 in federal taxes for the year. Wisconsin also requires estimated payments if state tax owed exceeds $500. Payment due dates are typically April 15, June 15, September 15, and January 15.