What is the self-employed person's FICA tax rate for 2020 and 2021?

2020 FICA Tax Rate for Self-Employed

The self-employed person's FICA tax rate for 2020 (January 1 through December 31, 2020) is 15.3% on the first $137,700 of net income plus 2.9% on the net income in excess of $137,700. In other words, the self-employed person's FICA tax rate for 2020 includes all of the following:

  • the employee's portion of the Social Security tax, which is 6.2% of the first $137,700 of net income
  • the employer's portion of the Social Security tax, which is 6.2% of the first $137,700 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)

A self-employed person having net income of exactly $137,700 in 2020 must remit FICA taxes of $21,068.10 ($137,700 X 15.3%).

2021 FICA Tax Rate for Self-Employed

The self-employed person's FICA tax rate for 2021 (January 1 through December 31, 2021) is 15.3% on the first $142,800 of net income plus 2.9% on the net income in excess of $142,800. In other words, the self-employed person's FICA tax rate for 2021 includes all of the following:

  • the employee's portion of the Social Security tax, which is 6.2% of the first $142,800 of net income
  • the employer's portion of the Social Security tax, which is 6.2% of the first $142,800 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)

A self-employed person having net income of exactly $142,800 in 2021 must remit FICA taxes of $21,848.40 ($142,800 X 15.3%).

There is also an Additional Medicare Tax 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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