2019 Self-Employment Tax
For 2019, the Self-Employment Tax is 15.3% (Rate), 12.4% (Social security rate), 2.9% (Medicare rate) and 92.35% (Share of net earnings taxed).
Effective 2019-01-01Source: Publication 334 (2019), Tax Guide for Small Business (IRS)Verified 2026-09-01
Compared with 2018
Every figure on this page is unchanged from 2018.
| Item | 2018 | 2019 | Change |
|---|---|---|---|
| Rate | 15.3% | 15.3% | +0% (+0.0%) |
| Social security rate | 12.4% | 12.4% | +0% (+0.0%) |
| Medicare rate | 2.9% | 2.9% | +0% (+0.0%) |
| Share of net earnings taxed | 92.35% | 92.35% | +0% (+0.0%) |
Who it applies to
Self-employed individuals, including sole proprietors and independent contractors, who have net earnings from self-employment.
What changed this year, and why
For 2019, the self-employment tax rate on net earnings is 15.3%. This is the same rate as in 2018. The 15.3% rate is made of two parts: 12.4% for social security and 2.9% for Medicare. Both parts are charged on the same net earnings from self-employment, and only the social security part stops at the year’s wage base.
Common questions
- How does the 2019 self-employment tax rate compare to 2018?
- The rate remained the same as in 2018.
- What are the two parts of the 2019 self-employment tax rate?
- The self-employment tax rate of 15.3% consists of 12.4% for social security and 2.9% for Medicare. The 12.4% social security part applies only up to the year’s social security wage base, while the 2.9% Medicare part applies to all net earnings from self-employment with no ceiling of its own.
The $400 threshold that makes Schedule SE mandatory
Self-employment tax applies to anyone whose net earnings from self-employment (excluding church employee income) reached $400 or more during the year. If you meet that threshold, you are required to pay the tax and file Schedule SE (Form 1040 or 1040-SR). The $400 figure is a low bar: it means that even modest freelance, gig, or business income triggers the filing obligation. Church employee income is handled under a separate, lower threshold and is excluded from this particular test. The rule makes no distinction based on whether the work was your main occupation or a side activity, nor does it matter whether you operated as a sole proprietor, independent contractor, or partner. Once your net earnings from self-employment cross the $400 line, the full 15.3% rate - composed of 12.4% for social security and 2.9% for Medicare - applies to 92.35% of those net earnings. In other words, the threshold determines whether you owe the tax at all; the verified figures then determine how much you owe on the taxable portion of your earnings.
Who must pay self-employment tax. You must pay SE tax and file Schedule SE (Form 1040 or 1040-SR) if either of the following applies. 1. Your net earnings from self-employment (excluding church employee income) were $400 or more.
Publication 334 (2019), Tax Guide for Small Business (IRS)
Church employee income is taxed from $108.28
For 2019, the IRS requires you to pay self-employment tax and file Schedule SE if your church employee income reached $108.28 or more during the year. Church employees are treated as self-employed for Social Security and Medicare purposes even though the church pays them as regular employees. Once church employee income hits this threshold, the tax is calculated on 92.35% of that income at a total rate of 15.3%, split into a 12.4% Social Security portion and a 2.9% Medicare portion. The rule applies regardless of your age and even if you are already receiving Social Security or Medicare benefits.
2. You had church employee income of $108.28 or more.
Publication 334 (2019), Tax Guide for Small Business (IRS)
Age and drawing benefits do not exempt you
Age and benefit status do not provide any exemption from self-employment tax. The tax rules apply no matter how old you are and even if you are already receiving social security or Medicare benefits. This means that a retiree who continues to earn self-employment income must still pay the tax and file Schedule SE if earnings reach the required threshold. The logic is that self-employment tax funds future benefit credits, and those credits are earned through work activity regardless of whether the worker has already reached retirement age or is currently collecting benefits. The standard 15.3% rate - composed of 12.4% for social security and 2.9% for Medicare - applies to 92.35% of net earnings from self-employment. There is no reduced rate, no partial exemption, and no age-based carve-out in the statute. If you are working and earning above the filing threshold, you owe the tax on that earnings regardless of your age or benefit status.
The SE tax rules apply no matter how old you are and even if you are already receiving social secur- ity or Medicare benefits.
Publication 334 (2019), Tax Guide for Small Business (IRS)
Half the tax comes back as an adjustment to income
Self-employed taxpayers get a tax benefit that partially offsets the cost of self-employment tax. You may deduct one-half of your SE tax as an adjustment to income on line 14 of Schedule 1 (Form 1040 or 1040-SR). This deduction reduces your adjusted gross income, which in turn lowers your income tax liability. The rationale is that employees pay only half of social security and Medicare taxes (with the employer paying the other half), so self-employed individuals - who pay the full 15.3% themselves - get a deduction for half the tax to approximate the employee side of the equation. The deduction is an above-the-line adjustment, meaning it is available whether or not you itemize deductions. The deduction amount equals exactly one-half of whatever SE tax you owe after applying the 15.3% rate to 92.35% of your net earnings. This does not reduce the SE tax itself; it reduces the income tax you calculate on your return.
Deduct one-half of your SE tax as an adjustment to income on line 14 of Schedule 1 (Form 1040 or 1040-SR).
Publication 334 (2019), Tax Guide for Small Business (IRS)
Only 92.35% of net earnings is actually taxed
The self-employment tax is not imposed on your full net earnings from self-employment. Instead, only 92.35% of those net earnings is subject to the tax. To figure net earnings using the regular method, multiply your self-employment earnings by 92.35% (0.9235). This multiplication simulates the employer's share of payroll taxes: in a traditional employment relationship, the employer pays half of social security and Medicare taxes, and that employer portion is not wages to the employee. For self-employed individuals, multiplying by 92.35% achieves a similar result by removing the equivalent of the employer's share before the tax is computed. The remaining 92.35% is then taxed at the full 15.3% rate, which consists of 12.4% for social security and 2.9% for Medicare. The result is that the effective rate on gross self-employment earnings is somewhat less than 15.3%, because the tax base itself has been reduced before the rate is applied.
To figure net earnings using the regular method, multiply your self-employment earnings by 92.35% (0.9235).
Publication 334 (2019), Tax Guide for Small Business (IRS)
Nobody withholds it, so you pay it quarterly
Unlike employees, self-employed individuals have no employer withholding social security and Medicare taxes from their pay. Because no one is collecting the tax on their behalf throughout the year, self-employed taxpayers must pay it themselves through estimated tax payments. You generally have to make estimated tax payments if you expect to owe taxes, including self-employment tax, of $1,000 or more when you file your return. These payments are made quarterly using Form 1040-ES, Estimated Tax for Individuals. The estimated tax system covers both income tax and self-employment tax together. If you fail to make sufficient estimated payments during the year, you may face a penalty for underpayment when you file your return. The IRS will calculate the penalty and send you a bill, or you can use Form 2210 to determine whether you owe one and how much. The quarterly payment requirement ensures that the government receives tax revenue on a pay-as-you-go basis rather than waiting until the annual return is filed.
Estimated tax payments. You generally have to make estimated tax payments if you expect to owe taxes, in- cluding self-employment tax (discussed later), of $1,000 or more when you file your return.
Publication 334 (2019), Tax Guide for Small Business (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Publication 334 (2019), Tax Guide for Small Business (IRS)
- Rate
SE tax rate. The 2019 SE tax rate on net earnings is 15.3% (12.4% social security tax plus 2.9% Medicare tax).
SE tax rate. The 2019 SE tax rate on net earnings is 15.3% (12.4% social security tax plus 2.9% Medicare tax).
- Medicare rate
SE tax rate. The 2019 SE tax rate on net earnings is 15.3% (12.4% social security tax plus 2.9% Medicare tax).
To figure net earnings using the regular method, multiply your self-employment earnings by 92.35% (0.9235).