What is the tax rate for self-employment income?

In Maryland, self-employment income is subject to state income tax, so the rate varies based on an individual’s total income. Generally, the tax rate is between 2% and 5.75%, depending on the amount of income earned. The first $10,000 of self-employment income (after deductions and taking into account any other sources of income) is not taxable. Any additional income is then taxed according to the Maryland Tax Rate Schedule. This schedule ranges from 2% for the first income bracket up to 6.5% for the last. It should be noted that the Maryland rate for self-employment income is different from the rate for wages. For most wage earners in Maryland, the rate is 6.25%. For specific questions about the tax rate for self-employment income, it is best to contact a tax adviser. This way, individuals can determine how much they will owe in taxes based on their unique situation.

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What is the tax rate for self-employment income?

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