What Is the Self-Employment Tax Rate for 2024?
The self-employment tax rate for 2024 is 15.3%, consisting of 12.4% for Social Security and 2.9% for Medicare. This tax applies to 92.35% of your net self-employment earnings. The Social Security portion only applies to the first $168,600 of combined wages and self-employment income (the 2024 wage base), while Medicare has no income cap.
Self-employed individuals — including freelancers, independent contractors, sole proprietors, and single-member LLC owners — pay both the employer and employee shares of FICA taxes. W-2 employees split this cost with their employer (each paying 7.65%), but when you work for yourself, you cover the full 15.3%.
How Self-Employment Tax Is Calculated
The IRS first reduces your net earnings by 7.65% (multiplying by 0.9235) to approximate the employer-share deduction. Here is a worked example for a freelancer with $100,000 in net profit:
- Taxable SE earnings: $100,000 × 0.9235 = $92,350
- Social Security tax: $92,350 × 12.4% = $11,451.40
- Medicare tax: $92,350 × 2.9% = $2,678.15
- Total SE tax: $14,129.55
- Deductible half: $14,129.55 / 2 = $7,064.78 (reduces AGI)
Additional Medicare Tax
If your self-employment income exceeds $200,000 (single filers) or $250,000 (married filing jointly), an additional 0.9% Medicare surtax applies to earnings above those thresholds. This brings the total Medicare rate to 3.8% on income over the limit. There is no Additional Medicare Tax for Social Security, and the employer-equivalent deduction does not apply to the surtax.
Key Thresholds for 2024
- Minimum filing threshold: $400 in net SE earnings
- Social Security wage base: $168,600
- Additional Medicare Tax threshold: $200,000 (single) / $250,000 (MFJ)
Try It Yourself
Enter your net self-employment income and instantly see your Social Security tax, Medicare tax, and deductible half.
Open Self-Employment Tax CalculatorFrequently Asked Questions
Do I pay self-employment tax on all my income?
No. Self-employment tax applies to 92.35% of your net self-employment earnings (gross income minus business expenses). This 7.65% reduction mirrors the fact that employers pay half of FICA taxes for W-2 employees. If your net earnings are below $400, you do not owe self-employment tax at all.
What is the Additional Medicare Tax for self-employed individuals?
If your self-employment income exceeds $200,000 (single) or $250,000 (married filing jointly), you owe an additional 0.9% Medicare tax on the amount above the threshold. This brings the total Medicare rate to 3.8% on income over those limits. There is no employer match for the Additional Medicare Tax.
Can I deduct half of my self-employment tax?
Yes. You can deduct the employer-equivalent portion (50%) of your self-employment tax when calculating your adjusted gross income (AGI). This deduction is taken on Schedule 1 of Form 1040, not on Schedule SE. For example, if your total SE tax is $14,130, you can deduct $7,065 from your gross income.
Is self-employment tax the same as income tax?
No. Self-employment tax covers Social Security and Medicare only — it is separate from federal and state income tax. As a self-employed person, you pay both self-employment tax and income tax on your net earnings. However, the deductible half of SE tax reduces the income subject to income tax.