{"id":4962,"date":"2021-12-03T09:32:35","date_gmt":"2021-12-03T14:32:35","guid":{"rendered":"https:\/\/falconexpenses.com\/blog\/?p=4962"},"modified":"2022-02-15T13:11:15","modified_gmt":"2022-02-15T18:11:15","slug":"self-employed-tax-rate","status":"publish","type":"post","link":"https:\/\/falconexpenses.com\/blog\/self-employed-tax-rate\/","title":{"rendered":"What is the self-employed tax rate? (Taxes for self-employed)"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d82fe89693c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d82fe89693c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/falconexpenses.com\/blog\/self-employed-tax-rate\/#What_is_the_self-employed_tax_rate_explained_How_much_you_have_to_pay_and_how_to_calculate_Keep_reading\" >What is the self-employed tax rate, explained. How much you have to pay, and how to calculate. Keep reading.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/falconexpenses.com\/blog\/self-employed-tax-rate\/#What_is_self_employed_tax\" >What is self employed tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/falconexpenses.com\/blog\/self-employed-tax-rate\/#How_are_self_employed_taxes_different_from_other_taxes\" >How are self employed taxes different from other taxes?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/falconexpenses.com\/blog\/self-employed-tax-rate\/#How_much_self_employment_tax_do_I_pay\" >How much self employment tax do I pay?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/falconexpenses.com\/blog\/self-employed-tax-rate\/#How_can_I_reduce_my_self_employed_tax_rates\" >How can I reduce my self employed tax rates?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/falconexpenses.com\/blog\/self-employed-tax-rate\/#How_self_employed_pay_tax\" >How self employed pay tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/falconexpenses.com\/blog\/self-employed-tax-rate\/#How_do_I_calculate_self_employed_tax\" >How do I calculate self employed tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/falconexpenses.com\/blog\/self-employed-tax-rate\/#What_are_self_employed_tax_write-offs\" >What are self employed tax write-offs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/falconexpenses.com\/blog\/self-employed-tax-rate\/#When_is_self_employed_taxes_due\" >When is self employed taxes due?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/falconexpenses.com\/blog\/self-employed-tax-rate\/#Self_employed_taxes_form\" >Self employed taxes form<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/falconexpenses.com\/blog\/self-employed-tax-rate\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<h2 class=\"wp-block-heading\" id=\"what-is-the-self-employed-tax-rate-explained-how-much-you-have-to-pay-and-how-to-calculate-keep-reading\"><span class=\"ez-toc-section\" id=\"What_is_the_self-employed_tax_rate_explained_How_much_you_have_to_pay_and_how_to_calculate_Keep_reading\"><\/span>What is the self-employed tax rate, explained. How much you have to pay, and how to calculate. Keep reading.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image alignwide size-full\"><a href=\"https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2021\/12\/what-is-the-self-employed-tax-rate.png\"><img loading=\"lazy\" decoding=\"async\" width=\"560\" height=\"315\" src=\"https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2021\/12\/what-is-the-self-employed-tax-rate.png\" alt=\"What is the self-employed tax rate? Taxes for self-employed.\" class=\"wp-image-4964\" srcset=\"https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2021\/12\/what-is-the-self-employed-tax-rate.png 560w, https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2021\/12\/what-is-the-self-employed-tax-rate-300x169.png 300w\" sizes=\"auto, (max-width: 560px) 100vw, 560px\" \/><\/a><figcaption>Learn about what is the self-employment tax rate, and how to calculate it. Read below.<\/figcaption><\/figure>\n\n\n\n<p>Working for yourself is empowering.<\/p>\n\n\n\n<p>You have a lot of freedom and you run your own show.<\/p>\n\n\n\n<p>However, this comes with extra responsibility. Such as extra complexities when it comes time to do your taxes. When you&#8217;re self-employed or an independent contractor and your 1099\u2019s start coming in, your stress probably goes up (just a bit). Also, you\u2019re often alone when it comes time to do your self-employed taxes alone.\u00a0<\/p>\n\n\n\n<p>That\u2019s why we created this article. To help you understand self-employed tax rates. In this article we explain self-employed taxes, and what they are. In addition, we explain how to calculate self-employed taxes. Further, we provide sample calculations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-self-employed-tax\"><span class=\"ez-toc-section\" id=\"What_is_self_employed_tax\"><\/span>What is self employed tax?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You\u2019re probably asking yourself, \u2018what is self-employed tax? if you work for yourself.<br>Self-employed tax is <strong>Social Security<\/strong> and <strong>Medicare<\/strong> tax you pay when you work for yourself. Social Security and Medicare tax are automatically taken from your paycheck when you work for someone else (i.e. when you\u2019re an employee).&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-are-self-employed-taxes-different-from-other-taxes\"><span class=\"ez-toc-section\" id=\"How_are_self_employed_taxes_different_from_other_taxes\"><\/span>How are self employed taxes different from other taxes?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Self-employment tax is different from other taxes because it is a tax that specifically contributes to Social Security and Medicare.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"what-is-social-security\">What is Social Security?<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.ssa.gov\/people\/materials\/pdfs\/EN-05-10230.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Social Security<\/a> is a Federal insurance program that provides benefits to those that are retired, disabled, or unemployed. For example, the checks you receive from the government after you retire, come from the money you contribute to Social Security each month from your paycheck. Throughout your life, you contribute a small portion of your income to social security. Therefore, when you retire you get it back in a monthly social security benefits check for the rest of your life.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"what-is-medicare\">What is Medicare?<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.medicare.gov\/what-medicare-covers\/your-medicare-coverage-choices\/whats-medicare\" target=\"_blank\" rel=\"noreferrer noopener\">Medicare<\/a> is health insurance provided by the government for people over 65, some younger people with disabilities, and people with end-stage renal disease. Therefore, when you retire, along with your Social Security check you get Medicare benefits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-much-self-employment-tax-do-i-pay\"><span class=\"ez-toc-section\" id=\"How_much_self_employment_tax_do_I_pay\"><\/span>How much self employment tax do I pay?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The self-employment tax rates are as follows:<br>The self-employment tax rate is 15.3%.<\/p>\n\n\n\n<p>This rate consists of two parts:<\/p>\n\n\n\n<p>12.4% for social security<br>2.9% for Medicare<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-can-i-reduce-my-self-employed-tax-rates\"><span class=\"ez-toc-section\" id=\"How_can_I_reduce_my_self_employed_tax_rates\"><\/span>How can I reduce my self employed tax rates?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Self-employed tax rates are specified by the IRS. You cannot change the self-employed tax rate or get it lowered. Each person that works for themselves pays the same rate.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-self-employed-pay-tax\"><span class=\"ez-toc-section\" id=\"How_self_employed_pay_tax\"><\/span>How self employed pay tax?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To pay self-employment tax you need a social security number (SSN) or an individual taxpayer identification number (ITIN).<br><br>At the end of the year, you complete and file a tax return and submit it to the IRS by April 15th. To file a tax return you need to complete <a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/form-1040\/\" target=\"_blank\" rel=\"noreferrer noopener\">Form 1040<\/a>, attach an <a href=\"https:\/\/falconexpenses.com\/blog\/what-is-an-irs-schedule-c-form\/\">IRS Schedule C<\/a> form, and submit it to the IRS.<\/p>\n\n\n\n<p>That\u2019s how self-employed pay tax.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-do-i-calculate-self-employed-tax\"><span class=\"ez-toc-section\" id=\"How_do_I_calculate_self_employed_tax\"><\/span>How do I calculate self employed tax?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Self-employment tax seems high. You have seen the self-employed tax rate explained above. However, the good news is you only calculate self-employment tax on net earnings. Not gross earnings. This means you calculate self-employment tax after you have subtracted self-employed tax deductions. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-are-self-employed-tax-write-offs\"><span class=\"ez-toc-section\" id=\"What_are_self_employed_tax_write-offs\"><\/span>What are self employed tax write-offs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While we\u2019re on the topic of self-employed tax rates, and what you have to pay, we thought we would give you a little direction about how to reduce your self-employment taxes.<\/p>\n\n\n\n<p>Self-employed have many tax deductions available to take advantage of. We suggest you check out this article for a full list of all self-employed tax deductions you should consider.<\/p>\n\n\n\n<p><a href=\"https:\/\/falconexpenses.com\/blog\/self-employment-tax-deductions\/\">A Definitive Guide to Self Employed Tax Write Offs<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"when-is-self-employed-taxes-due\"><span class=\"ez-toc-section\" id=\"When_is_self_employed_taxes_due\"><\/span>When is self employed taxes due?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Self-employed taxes are due April 15th like most other individual taxes. Most self-employed choose to be taxed as sole proprietors. This means they file a Form 1040 and attach a <a href=\"https:\/\/falconexpenses.com\/blog\/who-needs-to-file-an-irs-schedule-c-2\/\">Schedule C<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"self-employed-taxes-form\"><span class=\"ez-toc-section\" id=\"Self_employed_taxes_form\"><\/span>Self employed taxes form<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Below are links to the most common self-employed tax forms provided by the IRS. The tax forms linked below are what self-employed use to do their taxes.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/f1040.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Form 1040<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/falconexpenses.com\/blog\/what-is-an-irs-schedule-c-form\/\">Schedule C Form<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Self-employed tax and self-employed tax rates are not complicated. Once you understand a bit about the self-employed tax rate, and how to calculate it, it becomes easier to understand. More importantly, it\u2019s easier to do your taxes. We hope after reading this article you feel more informed and if you have any further questions leave them in the comments below (or <a href=\"mailto:support@falconexpenses.com\" target=\"_blank\" rel=\"noreferrer noopener\">email us<\/a>).<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>What is the self-employed tax rate, explained. How much you have to pay, and how to calculate. Keep reading. Working&#46;&#46;&#46;<!-- AddThis Advanced Settings generic via filter on wp_trim_excerpt --><!-- AddThis Share Buttons generic via filter on wp_trim_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":4964,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1974,18],"tags":[34,2741,1878,2742],"class_list":["post-4962","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-self-employed","category-taxes","tag-independent-contractor","tag-medicare","tag-self-employment-tax","tag-social-security"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/posts\/4962","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/comments?post=4962"}],"version-history":[{"count":0,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/posts\/4962\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/media\/4964"}],"wp:attachment":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/media?parent=4962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/categories?post=4962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/tags?post=4962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}