What Is Self-Employment Tax — and Why Do Musicians Owe It?
The tax bill that blindsides artists isn't income tax — it's the second one nobody warned you about. Here's the plain-English version.
As a self-employed artist you owe two taxes on your music profit: regular income tax, plus self-employment tax of about 15.3%. The second one is the surprise — and it's why setting money aside matters so much.
Tax #1 — income tax
This is the one you already know. Your music profit gets added to your other income and taxed at your regular federal rate (and usually a state rate too). Nothing shocking here — it's the same tax a paycheck faces.
Tax #2 — self-employment tax (the surprise)
At a job, Social Security and Medicare come out of your check, and your employer quietly pays a matching half. When you work for yourself, there's no employer — so you pay both halves. That combined amount is self-employment tax, roughly 15.3%, and it's charged on top of income tax.
This is the piece artists miss. You can be in a low income-tax bracket and still owe a real bill, because self-employment tax lands regardless.
The good news buried in it
- It's on profit, not gross. Your deductible expenses lower the number both taxes are figured on.
- You get part of it back on the front. You're generally allowed to deduct half of your self-employment tax when figuring your income tax.
- It's predictable. Once you know the two taxes exist, the fix is simple: hold back a percentage of every dollar (many artists start at 25–30%).
This is general education, not tax advice — Done Deal Digital isn't a CPA firm. Your situation depends on your income, state, and records. For advice on your numbers, work with a qualified CPA.
That's the short version
Know exactly what you'll owe
Your Music Is a Business breaks down both taxes with real artist examples, shows how deductions shrink the bill, and gives you the set-aside habit so the two-tax combo never catches you flat-footed.
Get the Guide — $39 →Or get all seven tax guides in one — The Complete Tax & Money Guide, $99 →