Freelance Tax Calculator

Freelance Tax Calculator

Self-employed individuals pay both the employer and employee portions of FICA taxes (15.3%).

How It Works

1. Enter your income or relevant financial details 2. Select your filing status and applicable deductions 3. Review your estimated tax liability 4. Plan your finances accordingly

Important Notes

• Tax laws change frequently; verify rates for the current year
• This provides estimates; consult a tax professional for complex situations
• State and local taxes vary and may require separate calculations
• Consider tax-advantaged strategies to minimize your liability

Common Deductions and Credits

Many taxpayers can reduce taxes through:

• Standard deduction or itemized deductions
• Retirement account contributions
• Education credits
• Child tax credit
• Mortgage interest deduction

What Self-Employment Actually Costs

A freelancer pays both halves of FICA — 15.3% on net earnings rather than 7.65% — because there is no employer to pay the other half.

On $85,000 of net self-employment profit:

	Amount
Net earnings (92.35% of profit)	$78,498
Social Security 12.4%	$9,734
Medicare 2.9%	$2,276
Self-employment tax	$12,010
Deductible half	−$6,005

Plus federal and state income tax on top. Half the SE tax comes back as an above-the-line deduction, and the QBI deduction may take another 20% off qualified business income.

Quarterly estimated payments are required: 15 April, 15 June, 15 September and 15 January. Missing them triggers an underpayment penalty even if you settle in full at filing. The safe harbour is paying 100% of last year's tax (110% above $150,000 AGI) — meet that and the penalty does not apply regardless of what you end up owing.

A Note on These Figures

Brackets, thresholds and the standard deduction shown here are for tax year 2024, filed in 2025, and they are indexed to inflation every year. State tax is not included and ranges from nothing at all (Florida, Texas, Washington and six others) to 13.3% in California.

This is an estimate, not tax advice. Anything involving equity compensation, multiple states, self-employment or a life change is worth an hour of a professional's time.

Worked Through the Brackets

On $85,000 of gross income, filing single, taking the $14,600 standard deduction — so $70,400 of taxable income:

Bracket	Range	Income taxed here	Tax
10%	$0 – $11,600	$11,600	$1,160
12%	$11,600 – $47,150	$35,550	$4,266
22%	$47,150 – $100,525	$23,250	$5,115
Total			$10,541

That is a 12.4% effective rate against a 22% marginal rate. The two answer different questions: the marginal rate is what the next dollar costs, and it is the one that decides whether a 401(k) contribution or an extra shift is worth it. The effective rate is what you actually paid, and it is the one to budget against.

The Same Income, Different Sources

Source	Federal tax on it
Wages (above)	$10,541
Self-employment profit	$10,541 income tax plus $12,010 SE tax
Long-term capital gain of $10,000	$1,500 at 15%

Where income comes from changes the bill more than how much of it there is. A self-employed filer at this level pays roughly $12,010 that an employee never sees, because there is no employer paying the other half of FICA.