# Self-Employment Tax

*Taxes — Finicade finance glossary*

Self-employment tax is both halves of FICA — 15.3% — paid by people with no employer to cover the other half. It applies to net business profit, not revenue, and half of it is deductible against income tax as a partial offset. It's the single biggest surprise for new freelancers, who budget for income tax and then discover another 15% owed on the same money.

**Formula:** `SE tax = 15.3% × 92.35% of net self-employment profit`

**Also known as:** SE tax, class 4 national insurance

**Related terms:** [FICA](https://finicade.com/glossary/fica), [Form 1099](https://finicade.com/glossary/form-1099), [Gig Economy](https://finicade.com/glossary/gig-economy), [Estimated Tax Payments](https://finicade.com/glossary/estimated-tax-payments), [Qualified Business Income Deduction](https://finicade.com/glossary/qualified-business-income-deduction)

Source: https://finicade.com/glossary/self-employment-tax