What is the self-employment tax rate in the US?

The US self-employment tax rate is 15.3% — covering Social Security (12.4%) and Medicare (2.9%). This applies to 92.35% of net self-employment earnings. You can deduct half of the SE tax from your gross income. For 2024, the Social Security portion applies to earnings up to $168,600.

What is the UK equivalent of self-employment tax?

UK self-employed people pay Class 4 National Insurance Contributions (NICs): 9% on profits between £12,570 and £50,270, and 2% above £50,270. They also pay Class 2 NICs at £3.45 per week if profits exceed £12,570. Plus income tax on profits above the £12,570 personal allowance.

Do I need an ABN to work self-employed in Australia?

Yes. If you're running a business in Australia, you need an Australian Business Number (ABN). If your turnover exceeds AU$75,000, you must also register for GST and lodge Business Activity Statements (BAS). Self-employed Australians pay income tax at ordinary marginal rates plus a 2% Medicare levy, with no separate self-employment tax like the US SE tax.

Self-Employment Tax Calculator — US SE Tax, UK NI, AU ABN, CA CPP

Self-Employment Tax Calculator

Calculate self-employment taxes by country. When you're self-employed, you pay both the employee and employer portions of social security taxes — which can significantly increase your total tax burden.

Quick Answer

US: SE tax = net earnings × 0.9235 × 15.3%. You can deduct half of SE tax from gross income. UK: Class 4 NI = 9% on profits £12,570–£50,270.

💡 US self-employment tax: 15.3% on net earnings (Social Security 12.4% + Medicare 2.9%). Deduct 50% of SE tax from income.

Net Self-Employment Income ($)

Self-Employment Tax Comparison by Country

The total tax burden for self-employed individuals varies enormously by country. Here's how the major economies handle social security contributions for the self-employed:

Country	Social Security/NI Rate	Threshold	Deductible?
🇺🇸 US	15.3% (SS 12.4% + Medicare 2.9%)	SS capped at $168,600	50% deductible
🇬🇧 UK	Class 4: 9% / 2% + Class 2 £3.45/wk	Class 4 from £12,570	No
🇩🇪 Germany	~20% (health + pension self-employed)	Varies by type	Partly as business expense
🇫🇷 France	~22–45% (cotisations sociales)	Varies by profession	Partly
🇨🇦 CA	~11.9% CPP (both portions)	Up to $73,200 earnings	Employee portion deductible
🇦🇺 AU	No SE tax; income tax + 2% Medicare	Medicare from ~$26K	N/A

Frequently Asked Questions

What tax deductions can self-employed people claim in the US?

Self-employed US taxpayers can deduct: 50% of SE tax, health insurance premiums, business expenses, home office, vehicle use, retirement contributions (SEP-IRA up to $69,000, or Solo 401k). These deductions significantly reduce the effective tax rate for business owners.

Can I reduce UK National Insurance as a sole trader?

UK self-employed people pay Class 4 NI on profits, which cannot be reduced below the standard rates. However, maximizing allowable business expenses reduces the profit on which NI is charged. You can also make voluntary Class 3 NI contributions to fill gaps in your State Pension record.

Self-Employment Tax Calculator

Self-Employment Tax Comparison by Country

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