Freelance Tax Calculator
(2026 US Federal Estimate)
Enter your net freelance profit to estimate self-employment tax, federal income tax, and the quarterly payment to set aside. Optional fields cover W-2 income and extra deductions.
Filing status
Freelance income minus business expenses (Schedule C line 31)
Job income of your own. It uses up the Social Security wage base and adds to taxable income
Taxable income of a spouse or other sources. Adds to taxable income only, not to your SE tax base
Retirement contributions, health insurance premiums, etc., beyond the standard deduction
Result
💡 Formula Guide
What a Freelancer Actually Owes
A US freelancer owes two separate federal taxes on profit: self-employment tax and ordinary income tax. Employees never see the first one as a distinct bill because payroll splits it with their employer. Self-employed people, whether they call it freelancing, contracting or gig work, pay both halves themselves, which is why the total can feel steeper than the tax on the same salary at a job.
This freelance tax calculator uses 2026 federal rules. It starts from your net profit — freelance income minus deductible business expenses — and works out self-employment (SE) tax, then income tax after the standard deduction, then the combined figure, the share of profit to set aside, and a quarterly amount for estimated payments.
Self-Employment Tax Step by Step
Social Security tax stops at the annual wage base, $184,500 in 2026, whereas the 2.9% Medicare portion has no cap. Higher earners also owe a 0.9% Additional Medicare Tax on earnings above $200,000 for single filers or $250,000 for joint filers. You then deduct half of the Social Security and Medicare tax when working out income tax, which slightly lowers the income-tax bill.
Worked example. A single filer with $80,000 of net profit and no other income: the SE base is $80,000 × 0.9235 = $73,880. Social Security is $9,161.12 and Medicare is $2,142.52, so SE tax is about $11,304. Half of that, roughly $5,652, is deducted, and so is the $16,100 standard deduction, leaving about $58,248 of taxable income. Income tax on that under the 2026 brackets is about $7,527. The total is around $18,830, or 23.5% of profit, and roughly $4,708 per quarter.
2026 Federal Brackets Used
Rates stay at 10%, 12%, 22%, 24%, 32%, 35% and 37%, but the income thresholds are adjusted for inflation each year. The calculator applies these single and joint tables from the IRS's 2026 adjustments (Revenue Procedure 2025-32):
| Rate | Single (taxable income up to) | Married filing jointly (up to) |
|---|---|---|
| 10% | $12,400 | $24,800 |
| 12% | $50,400 | $100,800 |
| 22% | $105,700 | $211,400 |
| 24% | $201,775 | $403,550 |
| 32% | $256,225 | $512,450 |
| 35% | $640,600 | $768,700 |
| 37% | Above that | Above that |
Brackets are marginal: each rate applies only to the slice of income inside that band, not to everything you earn. Moving into the 22% bracket does not mean all your income is taxed at 22%.
Quarterly Estimated Payments
Nobody withholds tax from freelance payments, so the IRS expects you to pay during the year through estimated taxes. Payments are generally due in mid-April, mid-June, mid-September and mid-January. The simplest habit is to move a fixed percentage of every invoice into a separate savings account the day it is paid, sized from this calculator, then pay from that account each quarter.
To avoid an underpayment penalty, the usual safe harbor is to pay at least 90% of the current year's tax or 100% of the previous year's total tax, rising to 110% if prior-year adjusted gross income was above $150,000. If your income is lumpy, the annualized installment method can help, but it needs more bookkeeping. These are general rules; confirm the current thresholds and due dates in IRS publications before relying on them.
💡 Tip: set aside slightly more than the estimate. State income tax, a good year, or a missed deduction can all push the real bill above a federal-only figure. Any surplus becomes your buffer for a slow month.
How to Use the Calculator
- Choose a filing status. Single or married filing jointly changes the standard deduction and the brackets.
- Enter net profit. Revenue minus deductible expenses for the whole year, or your projected annual figure.
- Add other income and deductions if you have them. W-2 wages use up part of the Social Security wage base and add to taxable income. Retirement contributions or self-employed health insurance can be entered as extra deductions.
- Read the four numbers. SE tax, income tax, taxable income and the quarterly payment update as you type.
Taxes are one piece of pricing. Feed your result back into the Freelance Hourly Rate Calculator so your rate covers them, and use the Project Quote Calculator and the Billable Hours Calculator to turn a target income into real quotes. If you invoice late payers, the Invoice Late Fee Calculator covers that side.
What This Estimate Leaves Out
It keeps to federal ordinary income and SE tax, so several real-world items are absent. The Qualified Business Income deduction can cut federal income tax for many sole proprietors. State and local income taxes, and in some places local business taxes, are additional. Credits such as the child tax credit, itemized deductions above the standard amount, capital gains, and the alternative minimum tax are not modelled either. Freelancers outside the US face entirely different regimes, and this tool does not apply to them.
Treat the output as a planning number. It is good for choosing how much to set aside and how large a quarterly payment to make, and less useful as a precise tax-return figure. If your situation involves multiple states, an S corporation election, or large deductions, a qualified tax professional will save more than they cost.
Frequently Asked Questions About Freelance Taxes
How much should a freelancer set aside for taxes?
It depends on profit, filing status and other income, so use your own figure from the calculator rather than a flat rule of thumb; the share rises as profit moves into higher brackets. For $80,000 of net profit as a single filer with no other income, the 2026 federal total comes to about $18,830, or roughly 23.5%. State tax comes on top.
What is self-employment tax and how is it calculated?
It is the freelancer's version of Social Security and Medicare payroll tax. You take 92.35% of net profit, then apply 12.4% for Social Security (up to the annual wage base, $184,500 for 2026) and 2.9% for Medicare with no cap. Together that is 15.3% of the taxable base, and an additional 0.9% Medicare tax applies to high earners above the IRS thresholds.
Why is only 92.35% of my profit used for SE tax?
Employees have the employer's half of payroll tax paid on top of their wages and it is not part of their income. Multiplying net profit by 92.35% (which is 1 minus half of 15.3%) approximates that treatment so the tax base matches what an employee's would be.
Do I have to pay estimated quarterly taxes?
Generally, yes, if you expect to owe at least $1,000 after withholding and credits. Payments are due around April 15, June 15, September 15 and January 15. Paying at least 90% of this year's tax, or 100% of last year's tax (110% for higher earners), usually avoids underpayment penalties. Confirm current thresholds with the IRS.
What business expenses can I deduct before calculating profit?
Ordinary and necessary costs of running the business, such as software, equipment, a home office that meets the IRS tests, professional fees, marketing and business travel. Enter net profit after those costs. Personal expenses and non-deductible items should not be included, and records matter if you are ever audited.
Does this include the QBI deduction or state taxes?
No. The Qualified Business Income deduction can reduce federal income tax by up to 20% of qualified business income for eligible filers, and state and local taxes vary widely. Both are left out to keep the estimate simple, so your actual federal bill may be lower and your total may be higher after state tax.
I also have a W-2 job. How does that change things?
Wages use up part of the Social Security wage base first, and they add to taxable income, pushing freelance profit into higher brackets. Enter your own wages in the optional field and the calculator adds the extra tax that the freelance income causes on top of what your wages alone would owe. A spouse's income has its own field, because it raises your taxable income but does not use up your Social Security wage base.
Can I use this to file my taxes?
No. It is an estimate for planning and quarterly payments, using 2026 federal figures, the standard deduction and ordinary brackets only. It does not handle credits, capital gains, itemized deductions or the alternative minimum tax. Use tax software or a qualified preparer for filing.
Last Updated: October 2026 | 2026 brackets, standard deduction and wage base checked on IRS.gov in October 2026. Uses 2026 IRS inflation-adjusted brackets (Rev. Proc. 2025-32), a $16,100 single / $32,200 joint standard deduction and the $184,500 Social Security wage base. US federal only; not tax advice.