Freelance Tax Calculator: How Much to Set Aside

What this tells you

As a US freelancer you pay self-employment tax of 15.3% on 92.35% of your net profit (that is Social Security plus Medicare, both halves), plus federal and state income tax on what is left after deducting half of it. Most freelancers set aside 25-35% of every payment and pay it in four quarterly estimates. This calculator does the arithmetic on your own numbers; it is an estimate, not tax advice.

Pricing · free tool

Freelance tax calculator

$90,000

Everything clients paid you, before expenses

$9,000

Software, equipment, home office, insurance

22%

Your marginal bracket, e.g. 12%, 22% or 24%

5%

0% in states with no income tax

At those numbers

Net profit
$81,000
Self-employment tax
$11,445
Income tax (federal + state)
$20,325
Total tax per year
$31,770
Quarterly estimated payment
$7,942
Set aside from each payment
35%

This is arithmetic on the numbers you entered, nothing here is a forecast or a promise about results.

The formula

net profit = income − expenses · self-employment tax = net × 92.35% × 15.3% · taxable = net − half of SE tax · income tax = taxable × (federal + state rate) · quarterly payment = total ÷ 4

How to read the result

  • The set-aside percentage is the number to act on: move that share of every client payment into a separate account the day it lands.
  • Business expenses lower both taxes at once, which is why tracking software, equipment and home-office costs matters more for freelancers than employees.
  • Social Security only applies up to a yearly wage cap, so above roughly $170,000 of net profit the real self-employment tax is lower than shown here.
  • Use your marginal federal rate, not your average one. When in doubt, ask an accountant; one hour costs less than an underpayment penalty.

Frequently asked questions

Most US freelancers set aside 25-35% of every payment. The exact share depends on your expenses, your federal bracket and your state; the calculator above works it out from your own numbers.

It is Social Security and Medicare for people who work for themselves: 15.3% on 92.35% of net profit. Employees pay half and their employer pays the other half; freelancers pay both halves, and can deduct half of it from income.

Usually yes. If you expect to owe $1,000 or more for the year, the IRS expects estimated payments in April, June, September and January, or charges an underpayment penalty.

No. It is arithmetic on the numbers you enter, using the standard self-employment tax rate. Deductions, credits and the Social Security wage cap change the real figure, so confirm with an accountant.

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