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For the 2025 tax year, individual filers wont pay any capital gains tax if their total taxable income is $48,350 or less. The rate jumps to 15 percent on capital gains, if their income is $48,351 to $533,400. Above that income level the rate climbs to 20 percent.
Self-employment tax rate The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).
Employees: Individuals who work as employees and receive a W-2 form are not subject to self-employment tax on their wages, as their employers withhold Social Security and Medicare taxes throughout the year that the employer pays over to the government.
File as an S corporation LLCs have the option of filing as an S corp., the main benefit of which is it provides a mechanism for reducing self-employment taxes. Under an S corp structure, the owner of an LLC can be considered an employee and receive a salary.
Rent you receive from real estate held for sale to customers is subject to SE tax. However, rent you receive from real estate held for speculation or investment is not subject to SE tax.
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Self-employment taxes - for sole proprietors, your net business income is the amount on which you must pay self-employment taxes. So, your net business profit or loss is also carried over to Line 2 of Schedule SE, which is used to compute your self-employment (SECA) tax.
You also dont pay self-employment tax on income from capital gains, interest, dividends, and other income that is not considered earned income. Traditional employees dont pay self-employment tax because they split their portion of Social Security and Medicare tax with their employer.

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