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Freelance Tax Calculator
Use this free freelance tax calculator to estimate what you owe on self-employment income. Enter your gross freelance income and business expenses, pick your income-tax bracket, and it estimates your self-employment tax, your income tax, your quarterly payments, and what you actually keep.
The wage base is the 2025 figure. Update it if a newer year applies.
| Figure | Value |
|---|---|
| Net self-employment income | $60,000.00 |
| SE taxable income (92.35% of net) | $55,410.00 |
| Social Security tax (12.4%) | $6,870.84 |
| Medicare tax (2.9%) | $1,606.89 |
| Total self-employment tax (15.3%) | $8,477.73 |
| Deductible half of SE tax | $4,238.87 |
| Estimated federal income tax | $12,267.45 |
| Estimated state income tax | $0.00 |
| Quarterly estimated payment | $5,186.29 |
| Effective tax rate on net income | 34.58% |
How it works
Freelancers pay two kinds of tax on the same income, and that surprises almost every new freelancer. The first is self-employment tax, which funds Social Security and Medicare. Employees split this cost with their employer — each side pays 7.65% — but a freelancer is both employer and employee, so they pay the full 15.3% themselves. The second is ordinary income tax, federal and usually state, on the profit that remains. This calculator estimates both, so the total it shows is the number you actually need to plan around.
The starting point is net self-employment income: your gross freelance income minus your ordinary and necessary business expenses. Software subscriptions, a home-office share of rent, mileage, equipment, and professional fees all reduce net income, and every dollar of legitimate expense lowers both your self-employment tax and your income tax. That is why tracking expenses matters so much: a freelancer who earns $75,000 and spends $15,000 on the business is taxed on $60,000, not $75,000.
Self-employment tax is not charged on the full net income. Only 92.35% of it is taxable, because the employer's 7.65% share of payroll tax is not counted as wages for an employee, and self-employed people get the same treatment. The rate is 15.3%: 12.4% for Social Security, but only on earnings up to the annual wage base ($176,100 for 2025, editable above), and 2.9% for Medicare on all of it. High earners also pay an extra 0.9% Medicare tax on self-employment income above $200,000 for single filers and heads of household, or $250,000 for married couples filing jointly — this calculator includes that extra tax automatically.
Next, you may deduct one-half of your self-employment tax when figuring your adjusted gross income. This is an above-the-line deduction, which means you get it even if you take the standard deduction instead of itemizing. The calculator subtracts that half from your net income before applying your income-tax rate. The income-tax estimate itself is deliberately simple: it applies the marginal rate you select to that reduced profit. In reality your income tax is figured on graduated brackets after the standard deduction, and may be reduced by credits and the qualified business income deduction, so treat this figure as a planning estimate, not a filing number.
Finally, the calculator divides your total estimated tax by four to give your quarterly estimated payment. The U.S. tax system is pay-as-you-go: because no employer withholds tax from freelance payments, you are expected to pay in four instalments during the year, normally in April, June, September, and January. Paying too little can trigger an underpayment penalty, so many freelancers move 25% to 30% of every payment into a separate savings account the day it arrives and never touch it until a quarterly deadline.
Worked example
Maya is a freelance graphic designer. In the year she earns $75,000 from clients and spends $15,000 on software, a laptop, coworking, and mileage.
Step 1: Her net self-employment income is $75,000 − $15,000 = $60,000.
Step 2: Her SE taxable income is $60,000 × 92.35% = $55,410.
Step 3: Social Security tax is $55,410 × 12.4% = $6,870.84, and Medicare tax is $55,410 × 2.9% = $1,606.89, so her self-employment tax is $8,477.73.
Step 4: She can deduct half of that, $4,238.87, so the income used for her income-tax estimate is $60,000 − $4,238.87 = $55,761.13.
Step 5: At a 22% marginal rate, her estimated federal income tax is $55,761.13 × 22% = $12,267.45. With no state income tax, her total estimated tax is $8,477.73 + $12,267.45 = $20,745.18.
Step 6: Her quarterly payment is $20,745.18 ÷ 4 = $5,186.29, and she keeps $60,000 − $20,745.18 = $39,254.82.
The result: on $60,000 of net freelance income, Maya owes about $20,745 in total tax and should pay about $5,186 each quarter. If her state charged 5% income tax, her state bill would add about $2,788 and her quarterly payment would rise to about $5,883 — try it in the calculator.
FAQ
How is self-employment tax calculated?
Self-employment tax is 15.3% of 92.35% of your net self-employment income: 12.4% for Social Security on earnings up to the annual wage base, plus 2.9% for Medicare on all of it. On $60,000 of net income, that works out to $8,477.73.
Why is only 92.35% of net income taxed?
The 92.35% figure mirrors what happens for employees: an employer pays 7.65% of wages in payroll tax, and that employer share is not counted as the employee's taxable wages. Self-employed people get the same treatment, so only 92.35% of net profit is subject to self-employment tax.
Can I deduct half of my self-employment tax?
Yes. You may deduct one-half of your self-employment tax when figuring your adjusted gross income. It is an above-the-line deduction, so you can take it even if you claim the standard deduction instead of itemizing.
How much should I set aside for quarterly estimated taxes?
Divide your total estimated tax for the year — self-employment tax plus income tax — by four. A common rule of thumb is to set aside 25% to 30% of every freelance payment as soon as it arrives, so the money is there when each quarterly payment is due.
Do freelancers pay income tax as well as self-employment tax?
Yes. Self-employment tax covers Social Security and Medicare only. You also owe federal income tax, and usually state income tax, on your profit. This calculator estimates both, using the marginal income-tax rate you select.