Freelance Tax Calculator

Net profit = income − expenses. SE tax = 15.3% of 92.35% of net profit. Income tax applies the brackets to (net profit + other income − half the SE tax − retirement − deductions). Quarterly payment = total ÷ 4.

Two taxes, no withholding

The shock for new freelancers is that profit is taxed twice over: once by the self-employment tax (the 15.3% Social Security and Medicare an employer and employee would normally split) and again by ordinary income tax. An employee never sees the employer half of FICA and has income tax withheld automatically; a freelancer pays both halves of FICA and gets nothing withheld, so the money has to be set aside. This calculator adds the two together on your net profit (income minus expenses) and shows the all-in figure, split so you can see how much is SE tax versus income tax.

Worked example — $100,000 freelance income, $20,000 expenses, single, 2025: Net profit $80,000 → SE tax ≈ $11,304; income tax ≈ $7,971 → total ≈ $19,274. That’s about $4,819 to send the IRS each quarter.

Expenses and the half-SE deduction work in your favour

Two deductions soften the load. Business expenses come straight off your income before any tax — every legitimate cost reduces both the SE tax and the income tax, which is why tracking them matters. And half of the SE tax (the employer-equivalent share) is deducted from your income before the brackets, lowering the income-tax half. The calculator applies both automatically. Self-employed retirement plans — a SEP-IRA or solo 401(k) — go further, letting you shelter far more than a regular IRA and cutting taxable income dollar for dollar; enter contributions to see the effect.

Quarterly estimates and the QBI deduction

Because nothing is withheld, the IRS expects estimated tax four times a year — generally by 15 April, 15 June, 15 September and 15 January of the following year. The calculator divides your total liability into four equal payments with those dates; if you also have a W-2 job, its withholding counts toward the year and reduces what you send. Many freelancers also qualify for the Qualified Business Income (QBI) deduction — up to 20% of business income knocked off taxable income — which can be substantial; toggle it on to estimate it, bearing in mind the real rules have income limits and phase-outs this tool simplifies.