What is the self-employment tax rate?

The self-employment tax rate in Arizona is 15.3%. This rate applies to all taxable income earned from self-employment activities. This includes income from any business activity, such as selling items on an online marketplace, freelancing, and performing tasks as an independent contractor. There are two components to the self-employment tax rate: Social Security and Medicare. The Social Security portion is 12.4%, which goes toward retirement benefits, and the Medicare portion is 2.9%, which goes toward health insurance premiums for the self-employed. Self-employment income is subject to the same federal income tax rates as wages and salaries. This means that, depending on one’s income level, some of the self-employment income may be subject to either a 10%, 12%, 22%, 24%, 32%, 35%, or 37% federal income tax rate. In addition to the federal tax obligations, self-employment earnings may also be subject to state income tax. In Arizona, the state income tax rate is 4.5%, which applies to all taxable income. This means that the total self-employment tax rate in Arizona is 15.3% (12.4% + 2.9% + 4.5%).

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What is the self-employment tax rate?

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