Freelancer Tax Calculator USA: Estimate Your Tax Bill

A rough estimate of your total tax rate as a US freelancer:

1. Self-employment tax: Net income × 92.35% × 15.3% ≈ 14.1% 2. Federal income tax: varies by bracket (roughly 15-25% for most freelancers) 3. State income tax: 0-10% depending on state

Total effective rate: typically 25-40% of net profit

Rule of thumb: set aside 30% of every payment received.

To calculate quarterly estimated payments: 1. Estimate your annual net profit 2. Calculate SE tax (14.1% of net profit) 3. Calculate federal income tax on adjusted gross income 4. Add state income tax 5. Subtract any credits 6. Divide by 4

Or use the safe harbor method: pay 100% of last year's tax (110% if AGI > $150,000) to avoid penalties.

• Maximize business deductions • Contribute to a SEP-IRA or Solo 401(k) • Consider S-Corp election for high earners • Claim the Qualified Business Income (QBI) deduction (up to 20%) • Time income and expenses strategically

Use Taxelyo's tools to calculate your obligations in real-time.