Self-Employment Tax

The 15.3% tax freelancers and sole proprietors pay to cover Social Security and Medicare. On top of income tax.

Full explanation

Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) applied to 92.35% of your net self-employment income. Unlike W-2 employees, who split FICA taxes 50/50 with their employer, self-employed individuals pay both halves. The Social Security portion applies only up to the wage base ($184,500 for 2026). Additional Medicare Tax of 0.9% applies to SE income over $200,000 (single). You can deduct the employer-equivalent portion (half) of SE tax from your AGI.

Source: IRS Publication 334 — Tax Guide for Small Business

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“How does self-employment taxaffect my taxes?”

Tax education only. Source: IRS Publication 334 — Tax Guide for Small Business.