What is the tax rate for self-employment income?

Self-employment income is subject to a flat tax rate of 13.3% in California. This rate applies to any type of income obtained from a business that is owned and operated by an individual. It is important to note that this rate is in addition to any other taxes that may be due on other income sources. It also applies to income generated from activities such as renting out property, providing services or selling products. When filing your taxes it is critical to understand this tax rate as it can affect your overall tax liability. It is important to note that these self-employment taxes are made up of two parts, the first being the Federal Insurance Contributions Act (FICA) tax. This tax is made up of Social Security and Medicare taxes and is charged at a rate of 12.4% and 2.9%, respectively. The second part of the self-employment taxes is the Federal Unemployment Tax Act (FUTA) tax, which is charged at a rate of 6.2%. In addition to these taxes, self-employed individuals may be subject to other taxes and fees such as excise taxes and business license fees. It is important to research the tax rates and fees that apply to your specific business to ensure compliance. Overall, the tax rate for self-employment income in California is 13.3%, which is made up of the FICA and FUTA taxes. It is important for taxpayers to understand this tax rate and the other fees and taxes that may be applicable to their business in order to accurately plan and prepare for their taxes.

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