Professional services
Freelance Tax Calculator
Estimates freelance tax, where irregular income makes the quarterly schedule the hard part.
Result
Not tax advice. Entity choice, reasonable compensation, pass-through deductions and state treatment interact in ways that depend entirely on your circumstances, and the rules change annually. This estimates a set-aside; the decision belongs with an accountant. The pass-through deduction has income thresholds and excludes several service businesses above them, so claiming the full 20% is frequently wrong. This also applies a flat marginal rate rather than progressive brackets, which overstates the tax.
Get a Free Business AuditHow the calculation works
Net earnings after expenses carry self-employment tax for Social Security and Medicare, with the Social Security element capped at the annual wage base, and income tax applies to taxable income with half the self-employment tax deductible. Freelance income is usually lumpy, which makes the annual estimate easier than the quarterly one.
What moves the number
- Net earnings after home office, software, equipment and other expenses.
- Income variability across the year.
- Other household income affecting the marginal bracket.
- State and local tax, which is outside this estimate.
Where this one goes wrong
Irregular income makes quarterly estimates awkward, because a quarter with a large project and a quarter with nothing are taxed as though they were a smooth year. Setting aside a percentage of every payment as it arrives is the practical answer, since a reserve built through the year survives a quiet quarter while a plan to pay from future income does not. Rates, thresholds and deduction amounts change annually, and this is a planning estimate rather than tax advice.
Before you quote
- Reserve a share of each payment as it arrives.
- Recalculate as the year's actual income becomes clearer.
- Confirm current rates and thresholds before relying on any figure.
Where the rules come from
Questions
About this calculator
How do I handle quarterly tax on irregular income?
By reserving a percentage of every payment as it arrives rather than planning to pay from future work. A quarter with a large project and a quarter with nothing are still taxed, and a reserve built through the year survives the quiet one.
Can I deduct a home office?
Potentially, under specific rules about exclusive and regular business use, with a simplified and an actual-expense method available. The qualifying conditions are narrower than people assume, so check the current IRS guidance or ask a preparer rather than estimating.
What percentage should I set aside?
Enough to cover self-employment tax plus income tax at your marginal rate, which for most freelancers is a substantial share and more than the income tax alone suggests. Running this calculation on your expected year gives a figure to reserve against.
The formula
net profit, then self-employment tax, then income tax on profit less half the SE tax, the standard deduction and any pass-through deduction
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How to use this calculator
- Business revenue ($). Enter your own figure; the page starts at $78,000.
- Deductible business expenses ($). Enter your own figure; the page starts at $11,000.
- Self-employment tax rate (%). Enter your own figure; the page starts at 15.3%.
- Federal marginal rate (%). Enter your own figure; the page starts at 22%.
- State rate (%). Enter your own figure; the page starts at 5%.
- Standard or itemised deduction ($). Enter your own figure; the page starts at $14,600.
The result updates as you type, so you can try a figure, see what it does to estimated total tax, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Business revenue | $78,000 |
| Deductible business expenses | $11,000 |
| Self-employment tax rate | 15.3% |
| Federal marginal rate | 22% |
| State rate | 5% |
| Standard or itemised deduction | $14,600 |
| Pass-through deduction claimed | 20% |
What comes out
| Result | Value |
|---|---|
| Estimated total tax main result | $18,719 |
| Net business profit | $67,000 |
| Self-employment tax | $9,467 |
| Income tax | $9,252 |
| Left after tax | $48,281 |
| Effective rate on profit | 27.94% |
On $67,000 of net profit the tax is about $18,719, made up of $9,467 self-employment tax and $9,252 income tax. That leaves $48,281, an effective rate of 27.94%.
How sensitive the answer is
Holding everything else steady and changing only business revenue, this is what happens to estimated total tax. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Business revenue ($) | Estimated total tax |
|---|---|
| $39,000 | $5,528 |
| $58,500 | $12,123 |
| $78,000 example above | $18,719 |
| $117,000 | $31,909 |
| $156,000 | $45,100 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Business revenue ($)
- A money amount, starting at $78,000.
- Deductible business expenses ($)
- A money amount, starting at $11,000.
- Self-employment tax rate (%)
- A percentage, between 0 and 20, starting at 15.3%.
- Federal marginal rate (%)
- A percentage, between 0 and 50, starting at 22%.
- State rate (%)
- A percentage, between 0 and 15, starting at 5%.
- Standard or itemised deduction ($)
- A money amount, starting at $14,600.
- Pass-through deduction claimed (%)
- Where it applies. Eligibility is restricted.
What the results tell you
| Result | What it is |
|---|---|
| Estimated total tax | The headline result. A money figure. |
| Net business profit | A money figure. |
| Self-employment tax | A money figure. |
| Income tax | A money figure. |
| Left after tax | A money figure. |
| Effective rate on profit | A percentage. |
Keep going
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