This freelance and self-employment tax calculator helps independent contractors, consultants, gig workers, and small business owners estimate their annual tax burden and quarterly payment obligations. Unlike W-2 employees whose taxes are withheld automatically, self-employed individuals are responsible for paying both the employee and employer portions of Social Security and Medicare taxes — a combined 15.3% known as the self-employment (SE) tax.
The calculator accounts for the IRS rule that allows you to deduct half of your SE tax from your gross income before calculating federal income tax, as well as the Qualified Business Income (QBI) deduction that many self-employed individuals qualify for. Business deductions for expenses like home office, equipment, software, and professional development reduce your net taxable income and can significantly lower your total tax bill.
Frequently Asked Questions
What is the self-employment tax rate?
The self-employment tax rate is 15.3% of net self-employment income. This consists of 12.4% for Social Security (on income up to $168,600 in 2024) and 2.9% for Medicare (on all net SE income). High earners pay an additional 0.9% Medicare surtax on income above $200,000 (single) or $250,000 (married filing jointly).
When are quarterly estimated taxes due?
The IRS quarterly estimated tax due dates are: April 15 (Q1: Jan–Mar), June 17 (Q2: Apr–May), September 16 (Q3: Jun–Aug), and January 15 of the following year (Q4: Sep–Dec). If a due date falls on a weekend or holiday, the deadline moves to the next business day.
What business expenses can I deduct as a freelancer?
Common deductible business expenses for freelancers include home office costs, business equipment and software, professional subscriptions and memberships, business-related travel, health insurance premiums (if self-employed), retirement contributions (SEP-IRA, Solo 401k), professional development and education, and business phone and internet costs. Keep receipts and records for all deductions.
What happens if I don't pay quarterly taxes?
If you underpay your estimated taxes or miss quarterly payments, the IRS may charge an underpayment penalty. The penalty is calculated based on the amount underpaid and the period of underpayment. You can avoid penalties by paying at least 90% of your current year tax liability or 100% of the prior year's tax (110% if your prior year AGI exceeded $150,000).
Can I deduct health insurance as a self-employed person?
Yes. Self-employed individuals can generally deduct 100% of health insurance premiums paid for themselves and their families as an above-the-line deduction, meaning you don't need to itemize to claim it. This deduction reduces your adjusted gross income but does not reduce self-employment tax.