The self-employed person's FICA tax rate for 2016 is 15.3% on the first $118,500 of net income and then 2.9% on the net income that is in excess of $118,500. (The percentages and the earnings limit are unchanged from 2015.)

The self-employed person's FICA tax rate for 2016 consists of the following:

  • the employee's portion of the Social Security tax, which is 6.2% of the first $118,500 of net income

  • the employer's portion of the Social Security tax, which is 6.2% of the first $118,500 of net income

  • the employee's portion of the Medicare tax, which is 1.45% of all net income (no cap or limit on net income)

  • the employer's portion of the Medicare tax, which is 1.45% of all net income (no cap or limit on net income)


In other words, the self-employed person's FICA tax rate for the year 2016 consists of the Social Security tax of 12.4% (6.2% + 6.2%) of the first $118,500 of net income plus the Medicare tax of 2.9% (1.45% + 1.45%) of every dollar of net income. This means that in 2016 a self-employed person's net income up to $118,500 will have a FICA tax of 15.3% (the 12.4% of Social Security tax plus the 2.9% of Medicare tax). The amount in excess of $118,500 will be subject to the 2.9% Medicare tax.

There is also a Medicare surtax that applies to higher income taxpayers. Information on the Medicare surtax and other income tax information can be found at www.irs.gov.

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