SE Tax Rate

The Self-Employment (SE) Tax Rate refers to the taxes that self-employed individuals must pay to fund Social Security and Medicare. Unlike traditional employees, who share these taxes with their employers, self-employed workers are responsible for the entire amount. The current SE tax rate is 15.3%, which includes 12.4% for Social Security and 2.9% for Medicare. However, there are income limits for the Social Security portion, and an additional 0.9% Medicare tax may apply to higher incomes. It’s essential for self-employed individuals to understand this tax to budget appropriately for their finances.