What is the self-employment tax rate for 2025?

The self-employment tax rate is 15.3%. It applies to net earnings from self-employment rather than to gross receipts, so business expenses come out before the rate is applied. You calculate it yourself on Schedule SE, Self-Employment Tax, which is filed with Form 1040, rather than having an employer work it out and withhold it from your pay.

What does self-employment tax actually pay for?

It is Social Security and Medicare tax, and nothing else. The Social Security part funds old-age, survivors, and disability insurance; the Medicare part funds hospital insurance. Together they make up the 15.3% rate. When the IRS uses the term self-employment tax it means only these two, so it does not include income tax or any of the other taxes a self-employed person may owe on the same earnings.

Can I deduct my self-employment tax?

You can deduct the employer-equivalent portion of your self-employment tax in figuring your adjusted gross income. That deduction only affects your income tax. It does not reduce your net earnings from self-employment and it does not reduce the self-employment tax itself, so the 15.3% still applies to the same net earnings. Wage earners cannot deduct the Social Security and Medicare taxes withheld from their pay.

Who has to pay self-employment tax?

You must pay it and file Schedule SE with Form 1040 if your net earnings from self-employment, other than church employee income, reached the amount the IRS states for the year, or if you had church employee income of at least the separate amount it states. Sole proprietors and independent contractors generally figure those net earnings on Schedule C before completing Schedule SE.

Do I still pay self-employment tax if I already collect Social Security or Medicare?

Yes. The IRS states that the self-employment tax rules apply no matter how old you are, and even if you are already receiving Social Security or Medicare. There is no age at which net earnings from self-employment stop being subject to the tax, so the 15.3% rate still reaches a business run after retirement in the same way it reaches one run before it.

Is there a cap on self-employment tax?

Only on part of it. A maximum applies each year to the combined wages, tips and net earnings subject to the Social Security portion of self-employment tax, Social Security tax, or railroad retirement tax. Once your wages and tips subject to those taxes reach that maximum, you do not pay the Social Security portion on your net earnings. The Medicare portion has no ceiling and applies to all your net earnings.

Is there an additional Medicare tax on self-employment income?

Yes. You are liable for an additional Medicare tax if your wages, compensation, or self-employment income, together with your spouse's if you file a joint return, exceed a threshold amount for your filing status. The IRS sets separate thresholds for married filing jointly, married filing separately, single, head of household with a qualifying person, and qualifying surviving spouse with a dependent child. It sits on top of the 15.3% rate.

How do I pay self-employment tax during the year?

To pay self-employment tax you must have a Social Security number or an individual taxpayer identification number. As a self-employed individual you may have to file estimated taxes quarterly, and those estimated payments are how self-employment tax is normally paid across the year rather than in one amount at filing. Publication 505, Tax Withholding and Estimated Tax, covers the detail.

What are the two parts of the 2025 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.

2025 Self-Employment Tax

Name: 2025 Self-Employment Tax
Creator: IRS

For 2025, the Self-Employment Tax figures are 15.3% (Rate), 12.4% (Social security rate), 2.9% (Medicare rate) and 2 more figures below.

Rate15.3%

Medicare ratefor Medicare (hospital insurance)2.9%

Maximum net earnings subject to the social security part$176,100

Effective 2025-01-01Source: Self-employment tax (social security and Medicare taxes) (IRS)Verified 2026-09-03

Share of net earnings taxedSource: Topic no. 554, Self-employment tax (IRS)Verified 2026-09-03

Maximum net earnings subject to the social security partSource: Cost-of-Living Increase and Other Determinations for 2025 (IRS)Verified 2026-09-03

Compared with 2024

Item	2024	2025	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	$168,600	$176,100	+$7,500 (+4.4%)

Who it applies to

You must pay self-employment tax and file Schedule SE with Form 1040 if your net earnings from self-employment, excluding church employee income, reached the amount the IRS states, or if you had church employee income of at least the separate amount it states. Sole proprietors and independent contractors generally use Schedule C, Profit or Loss from Business, to figure net earnings first, then Schedule SE to figure the tax. The rules apply no matter how old you are, and they apply even if you are already receiving Social Security or Medicare. Special rules cover workers who perform in-home services for elderly or disabled individuals: caregivers are typically employees of the individuals for whom they provide services, because they work in those individuals' homes and the individuals have the right to tell the caregiver what needs to be done.

What changed this year, and why

The self-employment tax rate is 15.3%. Self-employment tax is Social Security and Medicare tax for individuals who work for themselves, and the rate has a Social Security part covering old-age, survivors, and disability insurance, and a Medicare part covering hospital insurance. It is the counterpart of the Social Security and Medicare taxes an employer withholds from a wage earner's pay, with one practical difference: an employer calculates those taxes for a wage earner, while a self-employed person figures self-employment tax themselves on Schedule SE, Self-Employment Tax, filed with Form 1040. The Social Security part stops applying once combined wages, tips and net earnings reach the annual maximum, while the Medicare part applies to all net earnings with no such ceiling. 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 is the self-employment tax rate for 2025?: The self-employment tax rate is 15.3%. It applies to net earnings from self-employment rather than to gross receipts, so business expenses come out before the rate is applied. You calculate it yourself on Schedule SE, Self-Employment Tax, which is filed with Form 1040, rather than having an employer work it out and withhold it from your pay.
What does self-employment tax actually pay for?: It is Social Security and Medicare tax, and nothing else. The Social Security part funds old-age, survivors, and disability insurance; the Medicare part funds hospital insurance. Together they make up the 15.3% rate. When the IRS uses the term self-employment tax it means only these two, so it does not include income tax or any of the other taxes a self-employed person may owe on the same earnings.
Can I deduct my self-employment tax?: You can deduct the employer-equivalent portion of your self-employment tax in figuring your adjusted gross income. That deduction only affects your income tax. It does not reduce your net earnings from self-employment and it does not reduce the self-employment tax itself, so the 15.3% still applies to the same net earnings. Wage earners cannot deduct the Social Security and Medicare taxes withheld from their pay.
Who has to pay self-employment tax?: You must pay it and file Schedule SE with Form 1040 if your net earnings from self-employment, other than church employee income, reached the amount the IRS states for the year, or if you had church employee income of at least the separate amount it states. Sole proprietors and independent contractors generally figure those net earnings on Schedule C before completing Schedule SE.
Do I still pay self-employment tax if I already collect Social Security or Medicare?: Yes. The IRS states that the self-employment tax rules apply no matter how old you are, and even if you are already receiving Social Security or Medicare. There is no age at which net earnings from self-employment stop being subject to the tax, so the 15.3% rate still reaches a business run after retirement in the same way it reaches one run before it.
Is there a cap on self-employment tax?: Only on part of it. A maximum applies each year to the combined wages, tips and net earnings subject to the Social Security portion of self-employment tax, Social Security tax, or railroad retirement tax. Once your wages and tips subject to those taxes reach that maximum, you do not pay the Social Security portion on your net earnings. The Medicare portion has no ceiling and applies to all your net earnings.
Is there an additional Medicare tax on self-employment income?: Yes. You are liable for an additional Medicare tax if your wages, compensation, or self-employment income, together with your spouse's if you file a joint return, exceed a threshold amount for your filing status. The IRS sets separate thresholds for married filing jointly, married filing separately, single, head of household with a qualifying person, and qualifying surviving spouse with a dependent child. It sits on top of the 15.3% rate.
How do I pay self-employment tax during the year?: To pay self-employment tax you must have a Social Security number or an individual taxpayer identification number. As a self-employed individual you may have to file estimated taxes quarterly, and those estimated payments are how self-employment tax is normally paid across the year rather than in one amount at filing. Publication 505, Tax Withholding and Estimated Tax, covers the detail.
What are the two parts of the 2025 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.

Every amount on this page is a published figure rather than yours. The Net earnings subject to self-employment tax takes the number you enter and works it out against them, showing which published figure it used.

The $400 threshold that makes Schedule SE mandatory

You must file Schedule SE (Form 1040) and pay self-employment tax if your net earnings from self-employment, excluding church employee income, reach $400 or more in a year. This threshold applies regardless of whether you consider yourself a part-time or full-time self-employed person. If you are a sole proprietor or independent contractor, you generally use Schedule C to figure your net earnings, and those earnings trigger the filing requirement once they hit $400. Church employee income has its own, lower threshold. Below $400 of net self-employment earnings, no self-employment tax is owed, but church employee income is treated separately and has its own trigger point. Meeting the $400 threshold means the full self-employment tax calculation applies to 92.35% of your net earnings at a combined rate of 15.3%, which includes both the Social Security and Medicare components.

Your net earnings from self-employment (excluding church employee income) were $400 or more.
Self-employment tax (social security and Medicare taxes) (IRS)

Church employee income is taxed from $108.28

A church employee who earned $108.28 or more during 2025 must file Schedule SE (Form 1040) and pay self-employment tax. The threshold for church employees is separate from the rules that apply to other self-employed workers. Once that threshold is met, the full self-employment tax rate of 15.3% applies to church employee income. That rate is made up of a 12.4% Social Security portion and a 2.9% Medicare portion. Only 92.35% of the church employee income is subject to the tax. Church employees should complete Schedule SE to calculate the amount owed, since their employer does not withhold Social Security and Medicare taxes from their wages the way most employers do.

You had church employee income of $108.28 or more.
Self-employment tax (social security and Medicare taxes) (IRS)

Age and drawing benefits do not exempt you

There is no age-based exemption from self-employment tax, and collecting retirement benefits does not relieve you of the obligation to pay these taxes on self-employment income. If you continue working for yourself after reaching retirement age or after you begin drawing benefits, you must still pay self-employment tax on your net earnings if they meet the filing threshold. The self-employment tax applies at the combined rate of 15.3%, which consists of 12.4% for Social Security and 2.9% for Medicare. The tax is calculated on 92.35% of your net earnings from self-employment. Age and benefit status simply do not matter for determining whether you owe the tax.

The self-employment tax rules apply no matter how old you are and even if you are already receiving Social Security or Medicare.
Self-employment tax (social security and Medicare taxes) (IRS)

Half the tax comes back as an adjustment to income

You can deduct the employer-equivalent portion of your self-employment tax in figuring your adjusted gross income. This deduction only affects your income tax and does not reduce your net earnings from self-employment or your self-employment tax liability itself. Effectively, one-half of your SE tax is treated as the employer's share, and that half becomes an above-the-line deduction on your income tax return. This deduction is available to self-employed individuals because they bear both the employee and employer portions of Social Security and Medicare taxes, unlike wage earners whose employers pay half. The deduction reduces your adjusted gross income, which can affect other tax calculations that depend on AGI. It is important to note that while this deduction lowers your income tax, it does not lower the amount of self-employment tax you owe. The full 15.3% rate still applies to your net earnings from self-employment.

You can deduct the employer-equivalent portion of your self-employment tax in figuring your adjusted gross income.
Self-employment tax (social security and Medicare taxes) (IRS)

Only 92.35% of net earnings is actually taxed

Use Schedule SE (Form 1040) to figure your net earnings from self-employment. Before you figure your net earnings, you generally need to figure your total earnings subject to self-employment tax. Schedule SE then applies a reduction so that only 92.35% of your net earnings is actually subject to the self-employment tax. This reduction reflects the employer-equivalent portion that wage earners do not pay because their employer covers half of Social Security and Medicare taxes. The remaining 92.35% is then taxed at the combined rate of 15.3%, which consists of 12.4% for Social Security and 2.9% for Medicare. In other words, self-employed individuals are taxed on a slightly smaller base than their full net earnings, even though they owe the full combined rate. The result is that the effective tax burden more closely matches what a wage earner pays when FICA taxes are split between employee and employer.

Before you figure your net earnings, you generally need to figure your total earnings subject to self-employment tax.
Self-employment tax (social security and Medicare taxes) (IRS)

Nobody withholds it, so you pay it quarterly

As a self-employed individual, you may have to pay Estimated Taxes quarterly. You can use estimated tax payments to pay your self-employment tax. Because no employer withholds self-employment tax from your earnings the way an employer withholds Social Security and Medicare taxes from a wage earner's paycheck, you are responsible for sending these payments directly to the IRS throughout the year. The quarterly estimated tax system covers both your income tax and your self-employment tax obligations. If you fail to make adequate estimated tax payments during the year, you may owe a penalty when you file your return. The self-employment tax applies at the combined rate of 15.3%, consisting of 12.4% for Social Security and 2.9% for Medicare, calculated on 92.35% of your net earnings from self-employment. You can also deduct one-half of your SE tax as an adjustment to income when calculating your adjusted gross income.

You can use these estimated tax payments to pay your self-employment tax.
Self-employment tax (social security and Medicare taxes) (IRS)

A fiscal-year filer locks in the rate as of the start of their tax year

Self-employed taxpayers who operate on a fiscal year - meaning their tax year begins on a date other than January 1 - must apply the self-employment tax rate that is in effect on the first day of that fiscal year. For 2025, that rate is 15.3%, made up of 12.4% for Social Security and 2.9% for Medicare, applied to 92.35% of net earnings from self-employment. If Congress changes the rate or the earnings cap while a fiscal year is in progress, the taxpayer ignores the change and keeps using the original numbers for the entire year. In practice this means a fiscal-year filer cannot switch to a new rate partway through their return; the figures locked in on day one carry through to the last day. This rule exists so that a single set of consistent numbers can be used to compute the tax for the whole year, rather than requiring two separate calculations if a mid-year change takes effect.

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.
Self-employment tax (social security and Medicare taxes) (IRS)

In-home caregivers are usually employees, not self-employed, however it feels

Workers who provide in-home care services for elderly or disabled individuals are generally treated as employees of the people they care for, not as self-employed contractors, regardless of how the arrangement feels to either party. The IRS looks at two factors: the care is performed inside the individual's home, and the person receiving care retains the right to direct what work is done and how it is done. Because the recipient of the services exercises that control, the caregiver is classified as a household employee rather than an independent business operator. As a household employee, the caregiver's wages are subject to the employment taxes that fall on the household employer - the care recipient - rather than to self-employment tax on the caregiver's own return. The caregiver does not file Schedule SE or pay the 15.3% self-employment tax (the 12.4% Social Security portion plus the 2.9% Medicare portion applied to 92.35% of net earnings) on those wages. The IRS directs affected workers to the Family caregivers and self-employment tax page and to Publication 926, Household Employer's Tax Guide, for details on how the household employer handles withholding and reporting.

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.
Self-employment tax (social security and Medicare taxes) (IRS)

Above a threshold, self-employment income also owes the 0.9% Additional Medicare Tax

Taxpayers whose self-employment income - combined with any wages or compensation, and together with a spouse's if filing jointly - exceeds the threshold for their filing status owe an extra 0.9% Medicare Tax on top of the regular 2.9% Medicare portion of self-employment tax. The thresholds are $250,000 for married filing jointly, $125,000 for married filing separately, and $200,000 for single filers, heads of household, and qualifying surviving spouses. Because the threshold is applied to combined wages and self-employment income, a self-employed person with no wage income begins to owe the tax once their net earnings subject to Medicare (92.35% of net earnings from self-employment) cross the applicable threshold. The additional 0.9% tax has no wage base ceiling, so it applies to every dollar above the threshold.

You are liable for an additional 0.9% Medicare Tax if your wages, compensation, or self-employment income (together with that of your spouse if filing a joint return) exceed the threshold amount for your filing status: Filing status Threshold amount Married filing jointly $250,000 Married filing separate $125,000 Single $200,000 Head of household (with qualifying person) $200,000 Qualifying surviving spouse with dependent child $200,000
Self-employment tax (social security and Medicare taxes) (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.

Self-employment tax (social security and Medicare taxes) (IRS)

Rate: The self-employment tax rate is 15.3%.
Social security rate: The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).
Medicare rate: The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).

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Topic no. 554, Self-employment tax (IRS)

Share of net earnings taxed: Generally, the amount subject to self-employment tax is 92.35% of your net earnings from self-employment.

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Cost-of-Living Increase and Other Determinations for 2025 (IRS)

Maximum net earnings subject to the social security part: The OASDI contribution and benefit base is $176,100 for remuneration paid in 2025 and self-employment income earned in tax years beginning in 2025.

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