Freelancer Tax Estimator

Estimate quarterly taxes and your full year tax liability as a freelancer or self-employed person.

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$

Equipment, software, home office, professional fees, etc.

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Spouse's income, W-2 income, etc.

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SEP-IRA (up to 25% of net), Solo 401k, Traditional IRA

Net Self-Employment Income

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After expenses

Self-Employment Tax

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SS + Medicare (15.3%)

Est. Federal Income Tax

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After deductions

Quarterly Payment

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Estimated tax due

Tax Breakdown

How Freelancer Taxes Work

As a freelancer, you receive 1099 forms instead of W-2s. No taxes are withheld, so you pay quarterly. Total tax = Self-Employment tax (15.3% on net SE income) + Federal income tax + State income tax.

2025 Federal Tax Brackets (Single)

Taxable Income Rate
$0 – $11,92510%
$11,925 – $48,47512%
$48,475 – $103,35022%
$103,350 – $197,30024%
$197,300 – $250,52532%

Top Deductions for Freelancers

  • Home office: Dedicated workspace — simplified method: $5/sq ft up to 300 sq ft
  • Health insurance: 100% of premiums if not covered elsewhere
  • SEP-IRA: Up to 25% of net earnings (max $70,000 in 2025)
  • QBI deduction: 20% of qualified business income (if income under thresholds)
  • Business vehicle: Mileage (70 cents/mile in 2025) or actual expenses

Related Data

See detailed tax data by state and income level at PlainTaxData. Compare independent worker statistics and gig economy trends at PlainWorker.

Disclaimer: This is an estimate for planning purposes only. Tax liability depends on your full situation. Consult a tax professional (CPA) or use tax software. State taxes are NOT included here.

Frequently Asked Questions

What is self-employment tax?
Self-employment (SE) tax covers Social Security and Medicare. Employees have these split with their employer (7.65% each). As a freelancer, you pay both halves — 15.3% on net self-employment income (12.4% Social Security up to $176,100 + 2.9% Medicare on all income). You can deduct half of SE tax from gross income.
When are quarterly estimated taxes due?
Q1 (Jan–Mar): April 15. Q2 (Apr–Jun): June 16. Q3 (Jul–Sep): September 15. Q4 (Oct–Dec): January 15 of next year. You face an underpayment penalty if you owe more than $1,000 at tax time and haven't paid enough through estimates. Safe harbor: pay 100% of last year's tax (110% if income > $150K).
What business expenses can I deduct?
Deductible: home office (dedicated space), business equipment, software subscriptions, professional development, business travel (not commuting), health insurance premiums (if not covered by spouse's plan), retirement contributions (SEP-IRA up to 25% of net earnings), professional fees. Keep receipts for everything.
Should I form an LLC or S-corp to reduce taxes?
At roughly $40,000+ annual profit, an S-corp election can save $4,000-8,000/year in SE taxes by paying yourself a reasonable salary and taking the rest as distributions (distributions avoid SE tax). Setup costs: ~$1,500-3,000 in legal/accounting fees. Below $40K net profit, the extra complexity usually isn't worth it.

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