History of Self-Employment Tax Rates: 1951-2024
Did you know that the self-employment tax rate was a mere 2.25% on $3,600 from 1951-1953 for a total tax of $81.00. Back then, Medicare did not exist.
Low tax rates never seem to stick. It might be the camel’s nose under the tent theory. You know, once the camel gets its nose under the tent, the next thing you know is that you have the camel in the tent.
The self-employment tax very much follows the camel theory starting at a maximum of $81 in 1951 and growing to a 2024 maximum of $25,796.62 plus 2.9 percent on any excess above $168,600.1
Furthermore, since 2013, if you make over $200,000 ($250,000 for Married Filing Joint and $125,000 for Married Filing Separately) in net self-employment earnings, the federal government will tack on another 0.9% additional Medicare tax.
Watch the Taxes Increase
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You calculate your self-employment tax on Schedule SE of IRS Form 1040. If you have that urge at the moment, click here to access the form.
Self Employment Tax Rates: 1951-2024 | |||||
Year | Social Security (SS) Tax (%) | Medicare Tax (%) | Total (%) | Max Earnings Subject to SS Self-Employment Tax | Total Tax |
1951 | 2.250 | 0.00 | 2.250 | $3,600 | $81.00 |
1952 | 2.250 | 0.00 | 2.250 | $3,600 | $81.00 |
1953 | 2.250 | 0.00 | 2.250 | $3,600 | $81.00 |
1954 | 3.000 | 0.00 | 3.000 | $3,600 | $108.00 |
1955 | 3.000 | 0.00 | 3.000 | $4,200 | $126.00 |
1956 | 3.000 | 0.00 | 3.000 | $4,200 | $126.00 |
1957 | 3.375 | 0.00 | 3.375 | $4,200 | $141.75 |
1958 | 3.375 | 0.00 | 3.375 | $4,200 | $141.75 |
1959 | 3.750 | 0.00 | 3.750 | $4,800 | $162.00 |
1960 | 4.500 | 0.00 | 4.500 | $4,800 | $216.00 |
1961 | 4.500 | 0.00 | 4.500 | $4,800 | $216.00 |
1962 | 4.700 | 0.00 | 4.700 | $4,800 | $225.60 |
1963 | 5.400 | 0.00 | 5.400 | $4,800 | $259.20 |
1964 | 5.400 | 0.00 | 5.400 | $4,800 | $259.20 |
1965 | 5.400 | 0.00 | 5.400 | $4,800 | $259.20 |
1966 | 5.800 | 0.35 | 6.150 | $6,600 | $405.90 |
1967 | 5.900 | 0.50 | 6.400 | $6,600 | $422.40 |
1968 | 5.800 | 0.60 | 6.400 | $7,800 | $499.20 |
1969 | 6.300 | 0.60 | 6.900 | $7,800 | $538.20 |
1970 | 6.300 | 0.60 | 6.900 | $7,800 | $538.20 |
1971 | 6.900 | 0.60 | 7.500 | $7,800 | $585.00 |
1972 | 6.900 | 0.60 | 7.500 | $9,000 | $675.00 |
1973 | 7.000 | 1.00 | 8.000 | $10,800 | $864.00 |
1974 | 7.000 | 0.90 | 7.900 | $13,200 | $1,042.80 |
1975 | 7.000 | 0.90 | 7.900 | $14,100 | $1,113.90 |
1976 | 7.000 | 0.90 | 7.900 | $15,300 | $1,208.70 |
1977 | 7.000 | 0.90 | 7.900 | $16,500 | $1,303.50 |
1978 | 7.100 | 1.00 | 8.100 | $17,700 | $1,433.70 |
1979 | 7.050 | 1.05 | 8.100 | $22,900 | $1,854.90 |
1980 | 7.050 | 1.05 | 8.100 | $25,900 | $2,097.90 |
1981 | 8.000 | 1.30 | 9.300 | $29,700 | $2,762.10 |
1982 | 8.050 | 1.30 | 9.350 | $32,400 | $3,029.40 |
1983 | 8.050 | 1.30 | 9.350 | $35,700 | $3,337.95 |
1984 | 8.700 | 2.60 | 11.30 | $37,800 | $4,271.40 |
1985 | 9.100 | 2.70 | 11.80 | $39,600 | $4,672.80 |
1986 | 9.400 | 2.90 | 12.30 | $42,000 | $5,166.00 |
1987 | 9.400 | 2.90 | 12.30 | $43,800 | $5,387.40 |
1988 | 10.12 | 2.90 | 13.02 | $45,000 | $5,859.00 |
1989 | 10.12 | 2.90 | 13.02 | $48,000 | $6,249.60 |
1990 | 12.40 | 2.90 | 15.30 | $51,300 | $7,848.90 |
1991 | 12.40 | 2.90 | 15.30 | $53,400 | $8,170.20 |
1992 | 12.40 | 2.90 | 15.30 | $55,500 | $8,491.50 |
1993 | 12.40 | 2.90 | 15.30 | $57,600 | $8,812.80 |
1994 | 12.40 | 2.90 | 15.30 | $60,600 | $9,271.80 |
1995 | 12.40 | 2.90 | 15.30 | $61,200 | $9,363.60 |
1996 | 12.40 | 2.90 | 15.30 | $62,700 | $9,593.10 |
1997 | 12.40 | 2.90 | 15.30 | $65,400 | $10,006.20 |
1998 | 12.40 | 2.90 | 15.30 | $68,400 | $10,465.20 |
1999 | 12.40 | 2.90 | 15.30 | $72,600 | $11,107.80 |
2000 | 12.40 | 2.90 | 15.30 | $76,200 | $11,658.60 |
2001 | 12.40 | 2.90 | 15.30 | $80,400 | $12,301.20 |
2002 | 12.40 | 2.90 | 15.30 | $84,900 | $12,989.70 |
2003 | 12.40 | 2.90 | 15.30 | $87,000 | $13,311.00 |
2004 | 12.40 | 2.90 | 15.30 | $87,900 | $13,448.70 |
2005 | 12.40 | 2.90 | 15.30 | $90,000 | $13,770.00 |
2006 | 12.40 | 2.90 | 15.30 | $94,200 | $14,412.60 |
2007 | 12.40 | 2.90 | 15.30 | $97,500 | $14,917.50 |
2008 | 12.40 | 2.90 | 15.30 | $102,000 | $15,606.00 |
2009 | 12.40 | 2.90 | 15.30 | $106,800 | $16,340.40 |
2010 | 12.40 | 2.90 | 15.30 | $106,800 | $16,340.40 |
2011 | 10.40 | 2.90 | 13.30 | $106,800 | $14,204.40 |
2012 | 10.40 | 2.90 | 13.30 | $110,100 | $14,643.30 |
2013 | 12.40 | 2.90 | 15.30 | $113,700 | $17,396.10 |
2014 | 12.40 | 2.90 | 15.30 | $117,000 | $17,901.00 |
2015 | 12.40 | 2.90 | 15.30 | $118,500 | $18,130.50 |
2016 | 12.40 | 2.90 | 15.30 | $118,500 | $18,130.50 |
2017 | 12.40 | 2.90 | 15.30 | $127,200 | $19,461.60 |
2018 | 12.40 | 2.90 | 15.30 | $128,700 | $19,691.73 |
2019 | 12.40 | 2.90 | 15.30 | $132,900 | $20,334.34 |
2020 | 12.40 | 2.90 | 15.30 | $137,700 | $21,068.10 |
2021 | 12.40 | 2.90 | 15.30 | $142,800 | $21,849.10 |
2022 | 12.40 | 2.90 | 15.30 | $147,000 | $22,491.72 |
2023 | 12.40 | 2.90 | 15.30 | $160,200 | $24,511.38 |
2024 | 12.40 | 2.90 | 15.30 | $168,600 | $25,796.62 |
Chart does not take into account any possible 0.9% additional Medicare tax for 2013 – 2024. No part of the 0.9% additional Medicare tax can be used as a self-employment tax adjustment.
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1 Because only 92.35 percent of self-employment income is taxed on Schedule SE, the effective rates of tax are 14.13 percent on self-employment earnings and 2.68 percent on Medicare earnings above the base amount (excluding the new Additional Medicare Tax of 0.9% which does not figure into Schedule SE). Also, because only 92.35 percent of self-employment income is taxed, the true upper limit for the 14.13 percent is $182,566.
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