Self-employed individuals typically pay both income tax and self-employment tax (Social Security and Medicare), which together can amount to 25–40% of net earnings depending on income level and deductions. Income tax rates are progressive, ranging from 10% to 37% of taxable income based on tax brackets. Self-employment tax is 15.3% of net earnings (12.4% for Social Security on earnings up to an annual cap, plus 2.9% for Medicare with no cap), though you can deduct half of this when calculating adjusted gross income. The total burden varies significantly based on several factors: your net profit after business expenses, whether you qualify for deductions like a home office or vehicle use, your filing status, dependents, and other income sources. You may owe quarterly estimated taxes rather than paying once annually. Additionally, self-employed individuals can deduct half their self-employment tax and may benefit from retirement account contributions (SEP-IRA, Solo 401k) that reduce taxable income. State and local taxes add further obligations depending on location. To determine your specific liability, calculate net self-employment income (gross revenue minus business expenses), apply self-employment tax first, then determine income tax based on your total income and applicable deductions. Many self-employed people work with tax professionals or use tax software designed for self-employment to ensure accuracy and identify all available deductions.