Self-Employed & Freelance Tax Calculator
Estimate your 2024 federal self-employment and income tax liability.
Single
Married Filing Jointly
Net Profit:
$0.00
Self-Employment Tax (15.3%):
$0.00
Estimated Income Tax:
$0.00
Total Estimated Federal Tax:
$0.00
Effective Tax Rate:
0%
Take-Home Pay (After Fed Tax):
$0.00
How Freelance Taxes Work
Unlike traditional W-2 employees, freelancers and independent contractors are responsible for both the employer and employee portions of Social Security and Medicare taxes. This is commonly known as the Self-Employment Tax (SE Tax). The current SE tax rate is 15.3%, consisting of 12.4% for Social Security and 2.9% for Medicare.
The 92.35% Rule
When calculating SE tax, the IRS allows you to multiply your net profit by 92.35% before applying the 15.3% rate. This effectively mimics the deduction W-2 employees get since their half of payroll taxes isn't counted as taxable income. Our calculator applies this logic automatically.
Deductions and Taxable Income
To find your "Taxable Income" for standard federal income tax purposes, you take your Net Profit and subtract:
- The Employer-Equivalent Portion of SE Tax: You can deduct 50% of your calculated SE tax from your gross income.
- Standard Deduction: For 2024, the standard deduction is $14,600 for single filers and $29,200 for married filing jointly.
Example Calculation
If you earn $100,000 with $10,000 in expenses:
- Net Profit: $90,000
- SE Taxable Amount: $90,000 × 0.9235 = $83,115
- Self-Employment Tax: $83,115 × 0.153 = $12,716
- Adjusted Gross Income (AGI): $90,000 – ($12,716 / 2) = $83,642
- Taxable Income (Single): $83,642 – $14,600 (Standard Deduction) = $69,042
Your federal income tax would then be calculated based on current IRS tax brackets (10%, 12%, 22%, etc.) applied to that $69,042.
Important Note on Quarterly Payments
If you expect to owe more than $1,000 in taxes, the IRS typically requires you to pay estimated taxes quarterly. Failure to do so can result in underpayment penalties. Use this calculator to set aside a percentage of every invoice to ensure you aren't surprised during tax season.