For 2022, the self-employment tax rate is 15.3% on net earnings. The tax is divided into two parts: 12.4% goes toward Social Security and 2.9% goes to Medicare.

Here are 15 big self-employment tax deductions and tax benefits that could slash tax bills for freelancers, contractors and other people who work for themselves.

Self-Employment Tax Deduction Self-employed individuals must pay self-employment tax to cover their Social Security and Medicare taxes. The rate for this tax is 12.4% for Social Security and 2.9% ...

For example, if someone’s HR consulting business nets $200,000 in 2025 after expenses, their self-employment tax is calculated at 92.35% of that amount, which equals $184,700.

The self-employment tax is comprised of two taxes: the Social Security tax and the Medicare tax (also known as the FICA tax). As of the tax year 2023, the FICA tax rate is 15.3% — that’s 12.4% ...

Total self-employment tax: 15.3% When you have a regular employer, your employer usually pays for half of these taxes. This means you’d only have to pay 7.65% in Social Security and Medicare taxes.

Self-Employment Tax One downside to being your own boss is the self-employment tax . It’s currently 15.3%, which is 12.4% for Social Security and 2.9% for Medicare.

One consolation is that you may be able to take an income tax deduction for 50% of the self-employment tax you pay, giving you a bit of a tax break. 4 Steps for Filing Self-Employment Taxes ...

The IRS allows a cellphone tax deduction for self-employed people, but it's not as easy to claim the write-off as you might like. Tip If you use your phone 100 percent for business, you can write ...

Here are 15 big self-employment tax deductions and tax benefits that could slash tax bills for freelancers, contractors & other people who work for themselves.