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What Is the Self-Employment Tax and How Do You Calculate It? The self-employment tax is a tax on people who work for themselves—like independent contractors and small-business owners—and it funds Social Security and Medicare It applies to anyone earning $400 or more in self-employment income For 2025, the self-employment tax rate is 15 3%
What Is Self-Employed Work and Why Do People Pursue It? In this article, we discuss what it means to be self-employed, why people may choose to work for themselves, the most common types of self-employment and how taxes work for self-employed professionals, as well as offer tips if you’re considering self-employed work
Self-employment tax: What it is and how to calculate it | Fidelity The “self-employment tax” means you’ll pay up to 15 3% for Social Security and Medicare taxes, since you're considered as both employer and employee Being self-employed allows you tax deductions for qualified business income, retirement account contributions, and business-related expenses
Self-employment tax (Social Security and Medicare taxes) Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners