Self Employment Tax Rate
What is the self employment tax rate?
The self employment tax rate is 15.3% and is comprised of both:
Social security tax (12.4%) for
Medicare tax (2.9%) for
Social security tax portion of self employment tax
The social security tax is 12.4% on earnings up to $94,200 in 2006. For income over $94,200 there is no additional social security tax.
Medicare tax portion of self employment tax
The Medicare tax retains at 2.9% for all your self employment income.