For 2020, the self-employment tax rate is 15.3% on the first $137,700 worth of net income, plus 2.9% on net income over $137,700. Since you’re paying both portions (for employer and employee) of Social Security and Medicare, the rate breaks down as follows: The employee’s portion of the Social Security tax, which is 6.2% of the first Social Security tax rates remain the same for 2020—6.2% on employees and 12.4% on the self-employed. It now takes $1,410 to earn a single Social Security credit, up $50 from 2019. Beneficiaries The Two Parts of Self-Employment Taxes. Self-employment taxes are made up of two parts: Medicare and Social Security. Normally, you pay 6.2% towards Social Security, and your employer pays the other 6.2%. This applies to the initial $128,400 of your salary. For Medicare, you pay 1.45% from your salary, with no upper limit.