What is the self-employment tax rate?

Self-employment tax is 15.3% on net self-employment earnings up to $168,600 (2024), covering both the employee and employer portions of Social Security (12.4%) and Medicare (2.9%). Above that threshold, only the 2.9% Medicare tax continues with no cap. The good news: you can deduct half of SE tax as an adjustment to income on your 1040, lowering your taxable income.