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Simple Calculators

Freelancer Tax Calculator

Estimate US self-employment taxes, federal income tax, QBI deduction, and quarterly payment amounts for 2026

Income & Expenses

Total freelance / self-employment income

Deductible: software, home office, equipment

Filing Details

Enter 0 for states with no income tax (TX, FL, WA, etc.)

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Quick summary

As a freelancer, you pay self-employment tax (15.3%) on top of regular income tax. The good news: you can deduct business expenses, 50% of SE tax, and 20% of net profit (QBI deduction). After these deductions, your effective tax rate is typically lower than you'd expect — but quarterly estimated payments are essential to avoid underpayment penalties.

Reviewed by Simple Calculators TeamLast reviewed

How to use this calculator

  1. Enter the inputs requested by the calculator.
  2. Choose the units or options that match your situation and review the assumptions.
  3. Run or update the calculation to see the result.
  4. Review the result, breakdown, and formulas shown on the page.
  5. Check the inputs, units, dates, and limitations before saving or sharing the result.

Freelancer Tax Formulas (2026)

Self-Employment Tax

SE Tax=(Net Profit×0.9235)×0.153\text{SE Tax} = (\text{Net Profit} \times 0.9235) \times 0.153
Net Profit
Gross income − business expenses
0.9235
92.35% factor (the deductible half of SE tax)
0.153
15.3% SE tax rate (12.4% Social Security + 2.9% Medicare)

Worked example

$75,000 net profit

Given
SE Tax Base = $75,000 × 0.9235 = $69,263
SE Tax Rate = 15.3%
Calculation
69,263×0.15369{,}263 \times 0.153
Result
$10,597 SE tax

Adjusted Taxable Income

Taxable Income=Net Profit−SE Deduction−QBI Deduction−Standard Deduction\text{Taxable Income} = \text{Net Profit} - \text{SE Deduction} - \text{QBI Deduction} - \text{Standard Deduction}
SE Deduction
50% of SE tax (above-the-line deduction)
QBI Deduction
20% of net profit (Qualified Business Income deduction)
Standard Deduction
2026: $16,100 single / $32,200 married filing jointly

Worked example

$75,000 net profit, single filer, $10,597 SE tax

Given
SE Deduction = $5,299
QBI Deduction = $15,000
Standard Deduction = $14,600
Calculation
75,000−5,299−15,000−14,60075{,}000 - 5{,}299 - 15{,}000 - 14{,}600
Result
$40,101 taxable income

Frequently asked questions

What is self-employment tax?

Self-employment tax is 15.3% of your net self-employment income — covering Social Security (12.4%) and Medicare (2.9%). Employed workers split this with their employer (each paying 7.65%). Self-employed individuals pay the full 15.3%, but they can deduct half of it as an above-the-line deduction.

What is the QBI deduction for freelancers?

The Qualified Business Income (QBI) deduction allows most freelancers to deduct up to 20% of their net business profit from taxable income. For 2026, this deduction phases out for certain service businesses above $201,775 (single) or $403,500 (married filing jointly). Most freelancers earning under these thresholds get the full 20% deduction.

When are quarterly estimated tax payments due?

The IRS requires quarterly estimated tax payments if you expect to owe $1,000+ in taxes: April 15 (Q1), June 15 (Q2), September 15 (Q3), and January 15 of next year (Q4). Failure to pay can result in underpayment penalties. Divide your estimated annual tax by 4 to get each payment.

What business expenses can freelancers deduct?

Deductible business expenses include: home office (dedicated space), equipment (computers, cameras), software and subscriptions, professional development, business insurance, health insurance premiums (self-employed), vehicle mileage for business use, and professional fees (accounting, legal). Keep receipts and maintain good records.

Should I set up an LLC or S-Corp to save on taxes?

An S-Corp election can save on SE tax when income is high (typically $60,000+/year net). With S-Corp status, you pay yourself a 'reasonable salary' (subject to SE tax), and take remaining profits as distributions (not subject to SE tax). The savings must outweigh the administrative costs (payroll, additional filings). Consult a CPA.

Key terms

Self-Employment Tax
15.3% tax on net earnings covering Social Security and Medicare (both employee and employer portions)
QBI Deduction
Qualified Business Income deduction — up to 20% of net profit deducted from taxable income
Estimated Tax
Quarterly tax payments freelancers make to avoid year-end underpayment penalties
Effective Tax Rate
Your actual total tax divided by your net income — typically lower than your marginal bracket

Methodology, sources & limitations

This page shows the formula, assumptions, and limitations used for this estimate. Rates, thresholds, and other time-sensitive inputs can change, so verify them against the relevant official source before relying on a result.

For our review approach and the primary sources we consult, see the methodology and source policy. If you spot an outdated figure or formula, please contact us with a correction.