Self-Employment Tax Explained: How Much Freelancers Really Pay

Donut chart showing the 15.3% self-employment tax split into 12.4% Social Security and 2.9% Medicare

If you just got your first 1099 and your tax software showed a number far bigger than you expected, you’re not alone. The surprise almost always has the same cause: self-employment tax. Self-employment tax is the Social Security and Medicare tax that freelancers, contractors and gig workers pay on their own. When you work for … Read more