re: Effective tax rate on someone who is self employed...

• 10% on taxable income from $0 to $8,700, plus
• 15% on taxable income over $8,700 to $35,350, plus
• 25% on taxable income over $35,350 to $85,650, plus
• 28% on taxable income over $85,650 to $178,650, plus
• 33% on taxable income over $178,650 to $388,350, plus
• 35% on taxable income over $388,350.


For 2012, the maximum taxable earnings amount for Social Security (OASDI) taxes is $110,100. There is no limitation on taxable earnings for Medicare's Hospital Insurance (HI) taxes.
• Employee/Employer
• The Social Security tax rate for employees is 4.2 percent through the end of the year
• The Social Security tax rate for employers is 6.2 percent
• The Medicare tax rate is 1.45 percent for employees and employers
• Self-Employment
• The Social Security tax rate for self-employed is 10.4 percent through the end of the year. The Medicare tax rate is 2.9 percent for self-employed.