Taxorly AI Tax Advisor
Answered June 4, 2026
As a US tax expert, I'll provide you with a general overview of self-employment taxes. In 2026, the self-employment tax rate is 15.3% of your net earnings from self-employment, which includes 12.4% for Social Security and 2.9% for Medicare. You'll report this on Schedule C (Form 1040) and pay self-employment tax on Schedule SE (Form 1040).
For example, if you have $50,000 in net earnings from self-employment, you'll pay $7,650 in self-employment tax (15.3% of $50,000). You can deduct half of this amount as a business expense on your tax return.
To minimize your tax liability, keep accurate records of your business expenses and deductions. Consider setting aside 25-30% of your income for federal income taxes and self-employment taxes.
Try our Self-Employment Tax Calculator at taxorly.com/self-employment-tax-calculator.
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