2024 Self-Employment Tax
For 2024, the Self-Employment Tax figures are 15.3% (Rate), 12.4% (Social security rate), 2.9% (Medicare rate) and 2 more figures below.
Effective 2024-01-01Source: Publication 334 (2024), Tax Guide for Small Business (IRS)Verified 2026-09-04
Compared with 2023
| Item | 2023 | 2024 | 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%) |
| Maximum net earnings subject to the social security part | $160,200 | $168,600 | +$8,400 (+5.2%) |
Who it applies to
Self-employed individuals and independent contractors who have net earnings from self-employment
What changed this year, and why
The self-employment tax rate for 2024 is 15.3% on net earnings from self-employment. The rate covers both the Social Security and Medicare portions of the tax. 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
- What does the self-employment tax rate cover?
- The 15.3% rate covers both the Social Security and Medicare portions of the tax.
- What are the two parts of the 2024 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
If your net earnings from self-employment (not counting church employee income) reach $400 in a year, you must pay Self-Employment Tax and file Schedule SE with your Form 1040. This threshold applies to the 92.35% share of net earnings that is actually subject to the tax. The total SE tax rate is 15.3%, made up of a 12.4% Social Security portion and a 2.9% Medicare portion. Even though the $400 trigger is measured against gross net earnings, the taxable amount is found by multiplying by 92.35%. Meeting this threshold means you also generally need to make quarterly estimated tax payments, since no employer is withholding these taxes from your pay. You may deduct one-half of your SE tax as an adjustment to income, but that does not change whether you cross the $400 filing line in the first place.
Your net earnings from self-employment (excluding church employee income) were $400 or more.
Publication 334 (2024), Tax Guide for Small Business (IRS)
Church employee income is taxed from $108.28
If you work as an employee of a church or qualified church-controlled organization that has elected an exemption from social security and Medicare coverage, your wages are not subject to the usual payroll withholding for those programs. The IRS treats that income differently: if your church employee income reaches $108.28 or more in 2024, you must pay self-employment (SE) tax and file Schedule SE (Form 1040). Once you owe the tax, the full SE tax rate of 15.3% applies to your church employee income, split between the 12.4% social security part and the 2.9% Medicare part. Unlike regular self-employment income, where only 92.35% of net earnings is subject to the tax, church employee income is taxed from the first dollar once the $108.28 threshold is met. The rule applies regardless of your age and even if you are already receiving social security or Medicare benefits.
You had church employee income of $108.28 or more.
Publication 334 (2024), Tax Guide for Small Business (IRS)
Age and drawing benefits do not exempt you
Age and benefit status provide no exemption from self-employment tax. The rules apply regardless of how old you are and even if you are already collecting social security retirement benefits or enrolled in Medicare. This means that self-employment earnings that meet the filing threshold still trigger the full 15.3% tax, split between the 12.4% social security portion and the 2.9% Medicare portion, no matter the taxpayer's age. Some taxpayers mistakenly assume that once they reach retirement age or begin drawing benefits, their self-employment income becomes exempt from these taxes. That is incorrect: the obligation to pay SE tax continues as long as the earnings meet the threshold. As with all self-employment income, only 92.35% of net earnings is subject to the tax, and one-half of the resulting SE tax may be deducted as an adjustment to income on Schedule 1 (Form 1040).
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 (2024), Tax Guide for Small Business (IRS)
Half the tax comes back as an adjustment to income
Self-employed individuals can deduct half of their self-employment tax as an adjustment to income. Specifically, you deduct one-half of your SE tax on line 15 of Schedule 1 (Form 1040). This deduction is available because employees only pay half of their social security and Medicare taxes - their employer pays the other half - while self-employed individuals pay the full 15.3% rate (12.4% social security plus 2.9% Medicare). The deduction helps equalize the treatment between employees and self-employed taxpayers by reducing the income subject to federal income tax by the employer-equivalent portion of the SE tax. This adjustment to income is taken whether or not you itemize deductions. It reduces your adjusted gross income, which can affect other tax benefits that are limited based on AGI. The deduction does not reduce the amount of net earnings subject to SE tax - that calculation is done separately using the 92.35% multiplier.
Deduct one-half of your SE tax as an adjustment to income on line 15 of Schedule 1 (Form 1040).
Publication 334 (2024), Tax Guide for Small Business (IRS)
Only 92.35% of net earnings is actually taxed
The full amount of your net earnings from self-employment is not subject to tax. Only 92.35% of net earnings is actually taxed. To figure your taxable amount using the regular method, you multiply your self-employment earnings by 92.35% (0.9235). This reduction reflects the fact that employees do not pay social security and Medicare taxes on the employer's contribution, so self-employed individuals get a similar adjustment. The remaining 92.35% is then subject to the 15.3% SE tax rate, which consists of 12.4% for social security and 2.9% for Medicare. This calculation is done on Schedule SE (Form 1040), and the result appears on line 4a. The 92.35% multiplier applies to actual net earnings figured using the regular method. There are also optional methods available for figuring net earnings in certain situations, but the 92.35% adjustment is a key feature of the regular calculation that reduces the tax base before the 15.3% rate is applied.
multiply your self-employment earnings by 92.35% (0.9235).
Publication 334 (2024), Tax Guide for Small Business (IRS)
Nobody withholds it, so you pay it quarterly
Unlike employees who have taxes withheld from their paychecks, self-employed individuals must handle their own tax payments throughout the year. 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. Since no employer is withholding the 15.3% SE tax (12.4% social security plus 2.9% Medicare) from your self-employment income, you need to pay it quarterly using Form 1040-ES. The estimated tax requirement covers both income tax and self-employment tax combined. If you fail to make adequate estimated payments during the year, you may face a penalty for underpayment when you file your return. The IRS will calculate the penalty for you and send a bill, or you can use Form 2210 to figure it yourself. Even though you only pay SE tax on 92.35% of your net earnings, the quarterly payment obligation applies to the full tax liability you expect to owe.
Estimated tax payments. You generally have to make estimated tax payments if you expect to owe taxes, includ- ing self-employment tax (discussed later), of $1,000 or more when you file your return.
Publication 334 (2024), Tax Guide for Small Business (IRS)
A fiscal-year filer locks in the rate as of the start of their tax year
For a taxpayer using a fiscal year rather than the calendar year, the rate and earnings limit that apply are the ones in effect on the first day of the fiscal tax year. That rate and limit are then locked in and used for the entire fiscal year, regardless of any mid-year changes. This rule applies to self-employment tax in the United States for 2024, where the overall rate is 15.3% (12.4% for Social Security and 2.9% for Medicare) and only 92.35% of net earnings from self-employment is subject to tax.
Fiscal Year Filer If you use a tax year other than the calendar year, you must use the tax rate and maximum earnings limit in effect at the beginning of your tax year. Even if the tax rate or maximum earnings limit changes during your tax year, continue to use the same rate and limit throughout your tax year.
Publication 334 (2024), Tax Guide for Small Business (IRS)
In-home caregivers are usually employees, not self-employed, however it feels
In-home caregivers who perform services for elderly or disabled individuals are generally treated as employees of the individuals they care for, rather than as self-employed independent contractors. This is because they work in the home of the elderly or disabled person, and that person has the right to direct what the caregiver does. The IRS makes clear that even when a family member provides the care, the relationship is still usually an employer–employee one. When the caregiver is an employee, the caregiver does not pay self-employment tax on those wages; instead, the employer may owe employment taxes, although exceptions can apply for certain family caregivers. In those cases, the employer still reports the caregiver's pay on a Form W-2. Only when the facts show the caregiver is not an employee - for example, when they are paid by a third party such as an insurance company or a state program and operate independently - might the compensation be subject to self-employment tax at the 15.3% rate on 92.35% of net earnings, depending on the circumstances.
Caregivers are typically employees of the individuals for whom they provide services because they work in the homes of the elderly or disabled individuals and these individuals have the right to tell the caregivers what needs to be done.
Family caregivers and self-employment tax (IRS)
Above a threshold, self-employment income also owes the 0.9% Additional Medicare Tax
If your net earnings from self-employment in the United States exceed certain thresholds that depend on your filing status, you also owe a 0.9% Additional Medicare Tax on top of the regular 2.9% Medicare part of the self-employment tax. The thresholds are $250,000 for married taxpayers filing jointly, $125,000 for married taxpayers filing separately, and $200,000 for single filers, heads of household, and qualifying surviving spouses. When you have both wages and self-employment income, the threshold applied to your self-employment earnings is reduced - though not below zero - by the amount of your wages that are already subject to Additional Medicare Tax. The tax is calculated and reported on Form 8959. Unlike the regular self-employment tax, which applies the 12.4% social security portion only to the first $168,600 of net earnings, the Additional Medicare Tax has no upper cap; it applies to every dollar of combined wages and self-employment income above the threshold.
A 0.9% Additional Medicare Tax may apply to you if your net earnings from self-em- ployment exceed one of the following threshold amounts (based on your filing status). • Married filing jointly—$250,000 • Married filing separately—$125,000 • Single, Head of household, or Qualifying surviving spouse—$200,000 If you have both wages and self-employment income, the threshold amount for applying the Additional Medicare Tax on the self-employment income is reduced (but not below zero) by the amount of wages subject to Additional Medicare Tax. Use Form 8959, Additional Medicare Tax, to figure this tax.
Publication 334 (2024), 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 (2024), Tax Guide for Small Business (IRS)
- Rate
SE tax rate. The SE tax rate on net earnings is 15.3% (12.4% social security tax plus 2.9% Medicare tax).
SE tax rate. The 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 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).
- Maximum net earnings subject to the social security part
Maximum net earnings. The maximum net self-employ- ment earnings subject to the social security part of the self-employment tax is $168,600 for 2024.