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Farmers who operate their farming business as a sole proprietorship or as a partnership are subject to self-employment tax. This tax is paid in addition to income tax and covers Social Security and Medicare contributions. The self-employment tax rate is currently 15.3% (12.4% for Social Security and 2.9% for Medicare) on net earnings from self-employment up to the annual contribution limit. Visit the IRS website (https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center) for more information on self-employment tax and how it applies to farmers.