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International Self-Employment Tax Comparison

Compare self-employment tax obligations across the US, UK, Canada, Australia, Germany, France, Netherlands, and Singapore. See how freelancer taxes differ by country.

Guide Overview

Self-employment tax varies dramatically by country. A freelancer earning $80,000 pays roughly $11,300 in US self-employment tax, £2,400 in UK National Insurance, and nearly €12,000 in German social contributions. These calculators let you compare the real cost of freelancing across eight countries.

Focus: international self-employment tax comparison for freelancers and digital nomads

US Self-Employment Tax: The 15.3% Baseline

American freelancers pay self-employment tax at an effective rate of about 14.1 percent (15.3 percent on 92.35 percent of net earnings). This covers Social Security (12.4 percent, capped at $184,500) and Medicare (2.9 percent, uncapped). Half is deductible on your income tax return. Compared to other countries, the US rate is moderate but applies to all net earnings with no minimum threshold.

UK National Insurance: Low but Climbing

UK self-employed workers pay Class 2 NI at £3.45 per week and Class 4 at 6 percent on profits between £12,570 and £50,270, plus 2 percent above that. The effective rate is much lower than the US, especially for moderate earners. However, UK freelancers also face income tax starting at 20 percent above the personal allowance.

European Social Contributions: The Hidden Cost

Germany, France, and the Netherlands all require self-employed workers to fund their own social insurance. Germany’s combined health and care insurance alone runs around 20 percent of income. France’s micro-enterprise regime offers a simplified 22 percent flat rate on turnover. The Netherlands charges a 5.32 percent ZVW health contribution plus income-dependent premiums. These contributions often rival or exceed income tax in total burden.

Low-Tax Options: Singapore and Australia

Singapore self-employed workers contribute only to MediSave (8–10.5 percent, tiered by age and income), with no pension or unemployment contributions. Australia charges a 2 percent Medicare Levy with no separate self-employment tax, though the Medicare Levy Surcharge adds 1–1.5 percent for high earners without private health insurance. Both countries offer significantly lower self-employment overhead than the US or Europe.

Tools in This Guide

Use these tools in sequence based on your workflow needs.

Frequently Asked Questions

Which country has the lowest self-employment tax?
Among the countries we cover, Australia has the lowest self-employment-specific tax (2 percent Medicare Levy). Singapore is also low with MediSave contributions of 8–10.5 percent. However, total tax burden depends on income tax rates as well.
Do I have to pay self-employment tax in multiple countries?
Generally, you pay social security contributions in one country based on where you work or reside. Tax treaties and totalization agreements prevent double taxation in most cases. Consult a tax advisor for your specific situation.
Are these calculators updated for the current year?
Yes. Each country calculator uses the most recent published rates and thresholds. We update them when tax authorities release new figures.

Last updated: June 1, 2025