Finance

Freelance Tax Calculator

Estimate your total tax burden as a freelancer, gig worker, or 1099 contractor. See exactly how much to set aside.

How freelance taxes work.

As a freelancer or 1099 contractor, you're responsible for paying both the employer and employee portions of Social Security and Medicare taxes (called self-employment tax), plus federal and state income tax.

  1. Enter your total annual freelance income (before expenses).
  2. Subtract legitimate business expenses (home office, equipment, software, etc.).
  3. Select your filing status and enter your state tax rate.
  4. Click "Estimate My Taxes" to see the full breakdown.

Frequently asked questions.

What is self-employment tax?

Self-employment tax is the Social Security and Medicare tax that self-employed people pay. It's 15.3% of your net earnings — 12.4% for Social Security (up to the wage base limit) and 2.9% for Medicare.

Do I need to pay quarterly taxes?

Yes. If you expect to owe $1,000 or more in taxes, the IRS requires quarterly estimated tax payments. Missing these can result in underpayment penalties.

What expenses can I deduct?

Common deductions include home office space, internet/phone bills (business portion), software subscriptions, equipment, health insurance premiums, mileage, and professional development costs.

How much should I set aside for taxes?

A common rule of thumb is to set aside 25-30% of your freelance income for taxes. This calculator gives you a more precise estimate based on your actual income and deductions.