Self-Employment Statistics
Last updated: 2026-10-28 · 11 sourced statistics
Self-employment is counted in two very different ways. Labor force surveys ask people about their main job, and by that measure the Bureau of Labor Statistics counted 9.8 million unincorporated and 6.9 million incorporated self-employed workers in the US in 2025. Tax records count anyone who reports business income, and the IRS received 31.1 million nonfarm sole proprietorship returns (Schedule C) for tax year 2023. The gap is mostly side businesses. Below are both counts, what Schedule C businesses report earning, the self-employment tax rate, and the UK equivalent from the Office for National Statistics.
Key takeaways
- 9.8 million Americans were self-employed in unincorporated businesses and 6.9 million in incorporated businesses in 2025 (BLS annual averages).
- Together that is about 10.3% of the 163.5 million employed people in the US (our calculation from BLS data).
- Taxpayers filed 31.1 million nonfarm sole proprietorship returns for 2023, reporting $2.06 trillion in business receipts and $377.2 billion in net income less deficit (IRS).
- 31.2% of those returns showed no net income; the other 21.4 million reported a profit (IRS, 2023).
- The self-employment tax rate is 15.3%, and it applies once net earnings reach $400 (IRS). The UK had 4.44 million self-employed people in June to August 2026 (ONS).
At a glance.
Every figure on this page in one table, each linked to its named source. Scroll down for the full context behind each number.
| Figure | What it measures | Source | Year |
|---|---|---|---|
| 9.84M | 9.84 million people in the US were self-employed in unincorporated businesses as their main job in 2025 (annual average, all industries). | US Bureau of Labor Statistics, Current Population Survey, unincorporated self-employed (series LNU02027714) | 2025 |
| 6.94M | 6.94 million people were self-employed in incorporated businesses in 2025 (annual average), up from 6.82 million in 2024. | US Bureau of Labor Statistics, Current Population Survey, incorporated self-employed (series LNU02048984) | 2025 |
| 10.3% | Unincorporated and incorporated self-employed workers together were about 10.3% of the 163.5 million employed people in the US in 2025 (our calculation from the BLS annual averages). | US Bureau of Labor Statistics, Current Population Survey (series LNU02027714, LNU02048984, LNU02000000) | 2025 |
| 9.58M | In September 2026, 9.58 million people were unincorporated self-employed, down from 9.80 million in September 2025 (not seasonally adjusted). | US Bureau of Labor Statistics, Current Population Survey, unincorporated self-employed (series LNU02027714) | 2026 |
| 31.1M | Taxpayers filed 31.1 million individual returns reporting nonfarm sole proprietorship activity (Schedule C) for tax year 2023. | IRS Statistics of Income, Nonfarm Sole Proprietorship Statistics, Table 1, tax year 2023 | 2023 |
| $2.06T | Nonfarm sole proprietorships reported $2.06 trillion in business receipts for tax year 2023. | IRS Statistics of Income, Nonfarm Sole Proprietorship Statistics, Table 1, tax year 2023 | 2023 |
| $377.2B | Net income less deficit across all nonfarm sole proprietorships was $377.2 billion for 2023, an average of about $12,100 per return (our division of the IRS totals). | IRS Statistics of Income, Nonfarm Sole Proprietorship Statistics, Table 1, tax year 2023 | 2023 |
| 68.8% | 21.4 million of the 31.1 million nonfarm sole proprietorship returns for 2023 reported a net income, which means 31.2% reported none. | IRS Statistics of Income, Nonfarm Sole Proprietorship Statistics, Table 1, tax year 2023 | 2023 |
| 4.07M | The sectors with the most Schedule C returns in 2023 were other services (4.07 million), transportation and warehousing (3.92 million), professional, scientific and technical services (3.91 million) and construction (3.37 million). | IRS Statistics of Income, Nonfarm Sole Proprietorship Statistics, Table 1, tax year 2023 | 2023 |
| 15.3% | The self-employment tax rate is 15.3%: 12.4% for Social Security and 2.9% for Medicare. You generally owe it if net earnings from self-employment are $400 or more. | Internal Revenue Service, "Self-employment tax (Social Security and Medicare taxes)" (page reviewed June 27, 2026) | 2026 |
| 4.44M | 4.44 million people in the UK were self-employed in June to August 2026 (seasonally adjusted), about 12.8% of the 34.58 million people in employment (our calculation). | Office for National Statistics, Labour Force Survey, series MGRQ and MGRZ (released October 20, 2026) | 2026 |
The statistics
9.84 million people in the US were self-employed in unincorporated businesses as their main job in 2025 (annual average, all industries).
6.94 million people were self-employed in incorporated businesses in 2025 (annual average), up from 6.82 million in 2024.
Unincorporated and incorporated self-employed workers together were about 10.3% of the 163.5 million employed people in the US in 2025 (our calculation from the BLS annual averages).
In September 2026, 9.58 million people were unincorporated self-employed, down from 9.80 million in September 2025 (not seasonally adjusted).
Taxpayers filed 31.1 million individual returns reporting nonfarm sole proprietorship activity (Schedule C) for tax year 2023.
Source:IRS Statistics of Income, Nonfarm Sole Proprietorship Statistics, Table 1, tax year 20232023
Nonfarm sole proprietorships reported $2.06 trillion in business receipts for tax year 2023.
Source:IRS Statistics of Income, Nonfarm Sole Proprietorship Statistics, Table 1, tax year 20232023
Net income less deficit across all nonfarm sole proprietorships was $377.2 billion for 2023, an average of about $12,100 per return (our division of the IRS totals).
Source:IRS Statistics of Income, Nonfarm Sole Proprietorship Statistics, Table 1, tax year 20232023
21.4 million of the 31.1 million nonfarm sole proprietorship returns for 2023 reported a net income, which means 31.2% reported none.
Source:IRS Statistics of Income, Nonfarm Sole Proprietorship Statistics, Table 1, tax year 20232023
The sectors with the most Schedule C returns in 2023 were other services (4.07 million), transportation and warehousing (3.92 million), professional, scientific and technical services (3.91 million) and construction (3.37 million).
Source:IRS Statistics of Income, Nonfarm Sole Proprietorship Statistics, Table 1, tax year 20232023
The self-employment tax rate is 15.3%: 12.4% for Social Security and 2.9% for Medicare. You generally owe it if net earnings from self-employment are $400 or more.
4.44 million people in the UK were self-employed in June to August 2026 (seasonally adjusted), about 12.8% of the 34.58 million people in employment (our calculation).
When these numbers don't apply
Aggregate statistics hide a lot. Read these caveats before quoting a figure as if it describes your specific situation.
- The BLS figures count people by their main job only. Someone with a salaried job and a weekend business is counted as a wage and salary worker, which is one reason the IRS counts about three times as many sole proprietorship returns as the BLS counts unincorporated self-employed people.
- BLS counts incorporated self-employed people as wage and salary workers in its headline class-of-worker tables. The 6.9 million figure comes from a separate series; add it to the unincorporated count only when you want a total of both.
- IRS figures are estimates from a sample of tax returns and cover nonfarm sole proprietorships (Schedule C) only. They exclude partnerships, S corporations and farm businesses.
- Net income per return is our division of two IRS totals. Because so many returns report small amounts or losses, the typical (median) result is likely well below that average.
- UK figures come from the Labour Force Survey, which the ONS has flagged as having lower response rates in recent years; treat small month-to-month changes with caution.
- For freelancer counts from industry surveys and Census nonemployer data, see the freelance statistics page; for 1099 contractor data, see the independent contractor statistics page. This page sticks to official self-employment and tax return counts.
How we compiled this data
Reviewed on 2026-10-28. Every figure was read at its primary source that day. US self-employment counts come from the official BLS public data API for Current Population Survey series LNU02027714 (unincorporated), LNU02048984 (incorporated) and LNU02000000 (all employed), using 2025 annual averages and September 2026 monthly values; series titles were confirmed on the Federal Reserve Bank of St. Louis FRED pages. Tax return figures come from IRS Statistics of Income Table 1 for nonfarm sole proprietorships, tax year 2023 (file 23sp01br.xls, saved March 2026). The self-employment tax rate comes from the IRS self-employment tax page. UK figures come from the ONS Labour Market Statistics time series MGRQ and MGRZ, updated October 20, 2026. Percentages marked as our calculation are simple divisions of the published totals. We removed the previous version's figures that linked only to program homepages (a 16 to 17 million BLS range, a 28 million+ Census nonemployer count and a 33 million+ SBA small business count) and an Upwork freelancer estimate that belongs on the freelance statistics page.
We hand-collected each figure from its original publisher rather than recycling secondary round-ups, cross-checked the headline numbers against the source documents in 2026-10-28, and link every statistic to the report it came from so you can verify it yourself. Where a publisher issues annual updates, we cite the report edition and flag the year inline.
Frequently asked questions
How many people are self-employed in the US?
In 2025, the BLS counted 9.84 million people whose main job was in their own unincorporated business and 6.94 million in their own incorporated business, about 16.8 million in total or 10.3% of employed people. Tax records show more: 31.1 million Schedule C returns for 2023, because they include side businesses.
Why do the BLS and IRS counts differ so much?
The BLS survey records each person's main job, so a full-time employee with a small business on the side counts as an employee. The IRS counts every return that reports nonfarm sole proprietorship income, including side businesses and returns with a loss. Each answers a different question.
How much do self-employed people earn?
Across the 31.1 million Schedule C returns for 2023, net income less deficit totalled $377.2 billion, about $12,100 per return on average. 31.2% of returns reported no net income. These are business profits after expenses, not personal income, and many filers also have wages.
What is the self-employment tax rate?
15.3%: 12.4% for Social Security and 2.9% for Medicare, according to the IRS. It generally applies when net earnings from self-employment are $400 or more, and it is paid in addition to income tax.
How many people are self-employed in the UK?
4.44 million people were self-employed in June to August 2026, according to the ONS Labour Force Survey, about 12.8% of people in employment.
Put these figures to use
- Accounting hub: Guides to bookkeeping, records and reports for small businesses and sole proprietors.
- Profit margin calculator: Work out what you keep from each invoice after costs.
- Accounting basics every freelancer should know: Cash versus accrual, a monthly close and how much to set aside for self-employment and income tax.
- Freelance retirement planning: Retirement account options for the self-employed, with self-employment tax worked through.
Related statistics
Stop becoming a late-payment statistic
Create invoices, send them and record payments in InvoiceQuickly. Free to start.
Try InvoiceQuickly Free