What type of income is generally not subject to self-employment tax?

Rental income is generally not subject to self-employment tax because it is typically considered passive income rather than earned income. Self-employment tax is applicable to individuals who are in business for themselves and receive income through their efforts, such as from sole proprietorships, partnerships, and certain other business activities.

While rental income might be derived from a trade or business under certain conditions (for instance, if the taxpayer is classified as a real estate professional), it is usually viewed as investment income. Therefore, the general rule is that rental income is exempt from self-employment tax, setting it apart from wages earned from employment, which are subject to FICA taxes, and other forms of income like interest income and capital gains, which also do not fall under the self-employment tax provisions.