What is the self employment tax rate?

It should be noted that anytime self-employment tax is mentioned, it only refers to Social Security and Medicare taxes and does not include any other taxes that self-employed individuals may be required to file. The list of items below should not be construed as all-inclusive. read more

The self-employment tax rate for self-employment income earned in calendar year 2011 was 13.3% (10.4% for Social Security and 2.9% for Medicare). The Temporary Payroll Tax Cut Continuation Act of 2011 extended the self-employment tax reduction of 2% for calendar year 2012 so the rates for 2011 remained in effect for 2012. read more

The Medicare tax rate is 1.45% each for employers and employees, so self-employed individuals pay a Medicare tax rate of 2.9%. Unlike Social Security tax, there is no income cap for Medicare tax. The 2.9% rate applies to all of your earned income, no matter how high it is. read more

Self-Employment Tax Rate. The law sets the self-employment tax rate as a percentage of your net earnings from self-employment. This rate consists of 12.4% for social security and 2.9% for Medicare taxes. Additional Medicare Tax. Additional Medicare Tax applies to self-employment income above a threshold. read more