What is the self-employment tax rate?

The self-employment tax rate in Virginia is the same rate as the federal self-employment tax rate of 15.3%. This rate is split into two parts, 12.4% for Social Security and 2.9% for Medicare. The Social Security part of the self-employment tax is subject to the Social Security wage base limit, meaning that only earnings up to the Social Security wage base limit are subject to the 12.4% Social Security tax. The Medicare part of the self-employment tax rate applies to all earnings regardless of amount. The self-employment tax rate applies to individuals in Virginia who are considered self-employed, meaning that they are sole proprietors, partners in a partnership, or members of a limited liability company (LLC). All of these individuals must pay self-employment taxes on their net self-employment income. The net self-employment income is considered to be the total income the individual’s receives from the business less any deductions for business expenses that are deemed legitimate. In addition to the self-employment tax, individuals in Virginia who are self-employed must also pay their federal and state income taxes. The federal income tax rate will depend on the individual’s total taxable income, while the Virginia state income tax rate ranges from 2.5% to 5.75%. The net self-employment income is subject to both the federal and Virginia state income taxes.

Related FAQs

How do I file my taxes?
What is the difference between a tax deduction and a tax credit?
How do I know if I need to pay estimated taxes?
How much money can I expect to get back in a tax refund?
Are there any tax credits available?
Can I deduct student loans on my taxes?
What is the self-employment tax rate?
What is the difference between federal and state income tax?
How do I dispute an IRS bill?
What is the tax rate for capital gains?

What is the self-employment tax rate?

Related FAQs

Related Blog Posts