SEP IRA Contribution Calculator (2026)
Find the maximum you can contribute to a SEP IRA for the 2026 tax year as a self-employed professional, after the half-SE-tax adjustment and the $72,000 annual cap. 100% in your browser.
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2026 SEP IRA Contribution
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Your Numbers
Your Schedule C net profit after all business expenses.
Your 2026 Limits
Maximum 2026 SEP contribution
20% of net earnings (25% plan rate)
$18587.05
Net earnings (base)
Net profit minus the deductible half of SE tax
$92935.23
Self-employment tax (est.)
$14129.55
Deductible half of SE tax
$7064.78
2026 annual dollar cap
$72000.00
A SEP IRA for 2026 can generally be set up and funded by your filing deadline including extensions (April 15 or October 15, 2027).
This calculator provides estimation only. All results are for reference purposes only and do not constitute professional tax, financial, or legal advice. Please consult a qualified professional for official financial decisions.
SEP IRA Contributions for the Self-Employed in 2026
A Simple, High-Ceiling Retirement Plan
A SEP IRA is one of the simplest retirement plans for a freelancer or small business owner: you open the account, and you—as the employer—make contributions for yourself based on your earnings. For 2026, the contribution can reach 25% of compensation, with a dollar cap of $72,000.
Why Self-Employed Owners Use 20%, Not 25%
Employees have their SEP calculated on wages that do not shrink when a contribution is made. Self-employed owners are different: the contribution reduces the very income it is calculated from. The IRS resolves this with an adjusted rate, so a sole proprietor effectively contributes 20% of net earnings rather than 25% of gross profit.
The 2026 Steps in One Place
Start with your Schedule C net profit, subtract the deductible half of your 2026 self-employment tax to find net earnings, apply the 20% self-employed rate, and stop at the $72,000 annual cap. This calculator does all four steps and tells you when the dollar cap is what binds.
Deadlines Give You Room to Wait
Unlike most retirement plans, a SEP IRA can be set up and funded after the tax year ends—generally by your filing deadline including extensions, so April 15, 2027, or October 15, 2027 with an extension for the 2026 tax year. That makes it a favorite year-end move for freelancers who want certainty about their profit first.
Frequently Asked Questions
Answers to common questions about using this calculator.