What self-employment tax means
Self-employment tax is the Social Security and Medicare tax a self employed person pays on net earnings, covering both the employee and employer shares.
Also called SE tax.
Where it shows up in your business
Many new contractors are surprised by it at tax time. Set money aside from every payment and make estimated tax payments so the bill does not land all at once.
The numbers, with sources
- The IRS lists the self-employment tax rate as 15.3%: 12.4% for Social Security and 2.9% for Medicare. (IRS)
Work it out
- Free calculator: Quarterly estimated tax calculator
- Money: Money guides for contractors
Sources: IRS, Self-employment tax (Social Security and Medicare taxes). Checked October 9, 2026.