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Self Employment Tax Rates

The self employment tax rate for 2007 is 15.3% for any self employed individuals making $400 or more in self employment income. The self employment tax rate remains at 15.3% up until the net self employment earning of $97,500. If the taxpayer earns more than $97,500, then the self employment earnings is multiplied by 2.9% instead of 15.3% and than added to $12,090 to arrive at the self employment tax. The chart below shows the self employment tax for different income levels.

Self Employment Tax Rates

Self employment tax rate

Over the $97,500 threshold for self employment tax, the self employment tax rates begin to gradually decline from 15.3%.