The Self-Employment Tax

This freelancer tax calculator models the 15.3% self-employment tax (12.4% Social Security + 2.9% Medicare) applied to 92.35% of net profit. Because freelancers pay both shares, their total tax burden typically runs 25–35% of profit even before state taxes.

Income Tax Estimate

Taxable income starts from net profit, subtracts the deductible half of the SE tax, then the standard deduction ($14,600 for single filers in 2025). The federal rate you enter should be your effective bracket — a flat-rate estimate of the progressive schedule.

Plan for Quarterly Payments

Freelancers owe estimated taxes quarterly rather than through withholding. Setting aside roughly the effective rate shown here from every invoice avoids underpayment penalties at filing time.