# Do I need to pay self-employment tax on my rental income

**URL:** <https://forum.retipster.com/t/do-i-need-to-pay-self-employment-tax-on-my-rental-income/1162>\
**Category:** Tax & Legal\
**Created:** [November 14, 2020, 4:37am UTC](https://forum.retipster.com/t/do-i-need-to-pay-self-employment-tax-on-my-rental-income/1162 "2020-11-14T04:37:11Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![luna620](https://avatars.discourse-cdn.com/v4/letter/l/9de053/32.png) [@luna620](https://forum.retipster.com/u/luna620)\
**Post date:** [November 14, 2020, 4:37am UTC](https://forum.retipster.com/t/do-i-need-to-pay-self-employment-tax-on-my-rental-income/1162/1 "2020-11-14T04:37:11Z")

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Hey, me and my husband both are w2 wage earner. We formed a LLC and have 3 properties under that LLC and earning rental income

My question, do we need to pay self-employment tax on these rental income ? We pay SS and Medicare tax on W2 wage already and it's is way over the cap. (\>\> $137k). In that case, Do i still need to pay separate 15.3% self-employment tax on the rental income?

Thank you

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**Author:** ![jims](https://avatars.discourse-cdn.com/v4/letter/j/838e76/32.png) [@jims](https://forum.retipster.com/u/jims)\
**Post date:** [November 18, 2020, 10:58pm UTC](https://forum.retipster.com/t/do-i-need-to-pay-self-employment-tax-on-my-rental-income/1162/2 "2020-11-18T22:58:44Z")

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If you elect to treat it as a passthrough entity (as you probably should) the income will be passive (i.e. no se tax) and depreciation/interest/expenses should offset most if not all of the income assuming this is a residential property.