The combined 15.3% Social Security and Medicare tax paid by self-employed individuals.
Self-employment tax is the equivalent of FICA for people who work for themselves. Since self-employed individuals are both the employer AND employee, they pay both halves of FICA — 12.4% for Social Security and 2.9% for Medicare, totaling 15.3%. However, you can deduct the employer-equivalent portion (7.65%) on your personal tax return. This tax applies to net self-employment income of $400 or more.