Do you own a growing, unincorporated small business, and are you concerned about high self-employment (SE) tax? The SE tax is how Social Security and Medicare taxes are collected from self-employed individuals. The maximum 15.3% SE tax rate hits the first $168,600 of 2024 net SE income. The 15.3% rate is made up of 12.4% for Social Security tax plus 2.9% for Medicare tax. In 2025, the maximum 15.3% SE tax rate will hit the first $176,100 of net SE income. Above that, the 12.4% Social Security tax goes away, but the 2.9% Medicare tax continues for all income. Contact us if you have questions or want more information about the SE tax and ways to reduce it by operating as an S corporation.