What is the self-employment tax rate?

In California, the self-employment tax rate is 15.3%. This rate includes both Social Security and Medicare taxes for individuals who are self-employed. The Social Security portion of the rate is 12.4% and the Medicare portion is 2.9%. The rate is based on the self-employment income one makes, which is different from the income that a person would make if they were employed by someone else. For self-employed individuals, the Social Security tax applies to the first $137,700 of their net earnings from self-employment in 2020. The Medicare tax applies to all of their net earnings from self-employment. Both the Social Security and Medicare taxes are capped for self-employed individuals, but the tax rate is still 15.3%. It is important to note that this rate does not include any state or local taxes that may be due on the self-employment income. Any self-employed individual should make sure to keep track of their self-employment earnings, so they can properly file their state and federal taxes.

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What is the self-employment tax rate?

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