Tax Concepts
Self-employment (SE) tax
The tax sole proprietors, general partners, and certain LLC members pay on net business income — covering Social Security and Medicare. In 2026, 15.3% on the first $184,500 of net earnings, and 2.9% above that (3.8% above $200,000 single / $250,000 MFJ, once the Additional Medicare Tax applies). Half is deductible on the owner's return.
