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What is the self-employed person's FICA tax rate for 2022 and 2023?

Author:
Harold Averkamp, CPA, MBA

2022 FICA Tax Rate for Self-Employed

The self-employed person’s FICA tax rate for 2022 (January 1 through December 31, 2022) is 15.3% on the first $147,000 of net income plus 2.9% on the net income in excess of $147,000. In other words, the self-employed person’s FICA tax rate for 2022 includes all of the following:

  • the employee’s portion of the Social Security tax, which is 6.2% of the first $147,000 of net income
  • the employer’s portion of the Social Security tax, which is 6.2% of the first $147,000 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 $147,000 in 2022 must remit FICA taxes of $22,491. ($147,000 X 15.3%).

2023 FICA Tax Rate for Self-Employed

The self-employed person’s FICA tax rate for 2023 (January 1 through December 31, 2023) is 15.3% on the first $160,200 of net income plus 2.9% on the net income in excess of $160,200. In other words, the self-employed person’s FICA tax rate for 2023 includes all of the following:

  • the employee’s portion of the Social Security tax, which is 6.2% of the first $160,200 of net income
  • the employer’s portion of the Social Security tax, which is 6.2% of the first $160,200 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 $160,200 in 2023 must remit FICA taxes of $24,510.60 ($160,200 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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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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