2024 Self-Employment Tax
For 2024, 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 2024-01-01Source: Publication 334 (2024), Tax Guide for Small Business (IRS)Verified 2026-09-01
Compared with 2023
Every figure on this page is unchanged from 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%) |
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)
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).