Freelance Tax Estimator
Estimate your quarterly self-employment taxes, federal income tax, and take-home pay as a freelancer.
Software, equipment, home office, travel, etc.
What Is Self-Employment Tax?
Self-employment tax covers Social Security and Medicare for people who work for themselves. The combined rate is 15.3% (12.4% Social Security + 2.9% Medicare), applied to 92.35% of your net earnings. Unlike W-2 employees who split this with an employer, freelancers pay both halves. However, you can deduct half of your SE tax when calculating adjusted gross income.
How Quarterly Estimated Taxes Work
Freelancers must pay estimated taxes four times a year since no employer withholds taxes from their income. The IRS expects you to pay at least 90% of your current-year tax liability or 100% of last year's to avoid underpayment penalties. Divide your estimated annual tax by four and submit each quarter.
Common Freelance Tax Deductions
- Home office (dedicated workspace square footage)
- Software subscriptions and business tools
- Health insurance premiums (self-employed deduction)
- Professional development and courses
- Business travel, meals (50%), and vehicle expenses
- Retirement contributions (SEP-IRA, Solo 401k)
For a detailed list of what you can write off, read our guide to 15 freelance tax deductions you should claim. And to make sure you are capturing every expense, see how to track business expenses as a freelancer.
When to Pay Quarterly Taxes
- Q1: April 15 (Jan 1 - Mar 31 income)
- Q2: June 15 (Apr 1 - May 31 income)
- Q3: September 15 (Jun 1 - Aug 31 income)
- Q4: January 15 (Sep 1 - Dec 31 income)
Frequently Asked Questions
A common rule of thumb is 25-30% of gross income, but the exact amount depends on your income level, deductions, and filing status. This calculator gives you a more precise estimate based on actual 2026 tax brackets and self-employment tax rates.
If you expect to owe $1,000 or more in taxes for the year, the IRS requires quarterly estimated payments. New freelancers often get a pass for the first year since there is no prior-year liability, but it is best to start paying quarterly early to avoid a large bill at tax time.
The IRS charges an underpayment penalty, typically around 8% annually on the amount underpaid. The penalty is calculated for each quarter separately, so paying late for one quarter does not affect others. File Form 2210 to calculate or request a waiver.
Yes, if you use a dedicated space in your home regularly and exclusively for business. You can use the simplified method ($5 per square foot, up to 300 sq ft) or the regular method that calculates actual expenses proportional to your office space.
This tool estimates federal income tax and self-employment tax only. State income tax varies widely (0% in states like Texas and Florida, up to 13.3% in California). Add your state rate to get a complete picture of your tax burden.
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