Do Self-Employed Workers Pay Social Security Taxes?
Self-employed workers need to pay Social Security taxes. But those workers also have access to several deductions.
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Senior Editor & Content Strategist All self-employed workers must pay Social Security taxes, just like individuals who work for an employer. Those who work for an employer split their Social Security tax burden down the middle, while self-employed workers are responsible for both halves.
And because self-employed workers pay Social Security taxes, they’re entitled to Social Security benefits in retirement. Here’s what self-employed workers need to know about preparing their taxes.
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Yes, self-employed workers with more than $400 in annual net earnings from their business must pay Social Security taxes . This also applies to self-employed workers who earned more than $108.28 from a church.
Self-employed individuals pay a 12.4% Social Security tax. In 2025, the first $176,100 of earnings is subject to Social Security tax. In 2026, the first $184,500 of earnings is subject to Social Security tax. Self-employed people also pay a 2.9% Medicare tax on total net earnings. When combined, these two taxes are commonly referred to as “self-employment tax.” The current self-employment tax rate is 15.3%.
Those who work for an employer split their tax burden with their employer, with each paying a 6.2% Social Security tax. Workers and their employers also split the Medicare tax burden down the middle, with each paying 1.45% Medicare tax on all earnings .
These self-employment taxes are not the same as income tax. Self-employed workers can deduct half of their Social Security tax from their gross income when calculating their income tax obligations .
Yes, self-employed workers are entitled to the same Social Security benefits that traditional workers receive. Benefits will depend on how much you pay into Social Security throughout your working years, as well as how much you earn throughout your lifetime.
To determine your benefits, the Social Security Administration calculates your average monthly income during your highest 35 years of earnings. Then, it uses that figure to calculate your primary insurance amount, the basis for your monthly benefit payments.
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- Federal: $79 to $139. Free version available for Simple Form 1040 returns only.
- State: $0 to $69 per state.
- Expert help or full service filing is available with an upgrade to Live packages for a fee.
Disclosures: TurboTax Free Edition is for Simple Form 1040 returns only (no schedules except for Earned Income Tax Credit, Child Tax Credit and Student Loan Interest). Roughly 37% of taxpayers qualify.
Tax season looks different for self-employed individuals.
You’ll most likely be required to pay estimated quarterly taxes, instead of annually. Self-employed workers also must pay income tax.
At tax time, most self-employed people need to complete IRS Schedule C to determine their net earnings from self-employment for the year.
Most self-employed people also need to complete IRS Schedule SE to calculate the Social Security and Medicare taxes owed on those earnings.
Here’s some good news, though: Self-employed workers are eligible for several tax deductions. You may be eligible for tax breaks on the cost of your home office, health insurance and even credit card interest from business expenses.
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- 1. Social Security Administration. If You Are Self-Employed. Accessed Nov 19, 2025.
- 2. IRS.gov. Topic no. 751, Social Security and Medicare withholding rates. Accessed Nov 19, 2025.
- 3. SSA.gov. If You Are Self-Employed. Accessed Nov 19, 2025.
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