Small business tax help website

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


survivors, and

disability insurance



Medicare tax (2.9%) for

hospital insurance


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.