Stop stressing about self-employment taxes. This free freelance tax calculator helps you estimate your quarterly IRS payments and shows you exactly what percentage to save from every client invoice so you never get caught off guard.
Set aside 21% from every invoice you send to cover your taxes.
Disclaimer: This tool provides rough estimates for educational purposes only. It does not account for state taxes, complex deductions, or specific tax brackets. Always consult a certified CPA before filing.
When you transition from a W2 employee to a 1099 independent contractor, your taxes become your own responsibility. Because no employer is withholding taxes from your paycheck, you must proactively set aside money from every single client invoice to cover both federal income tax and the 15.3% self-employment tax.
This free freelance tax calculator helps you avoid a massive surprise bill in April by calculating an estimated "Safe To Spend" percentage. By entering your projected annual income, business expenses, and expected tax bracket, the tool tells you exactly how much money you need to transfer to a separate tax savings account every time you get paid.
A freelance copywriter expects to earn $100,000 this year. They have $10,000 in deductible business expenses (software, internet, home office), leaving a taxable net profit of $90,000. Their combined federal/state income tax rate is roughly 15%, plus the 15.3% self-employment tax, bringing their total effective tax rate to around 30%.
Annual Tax Liability = $90,000 × 30% = $27,000 Quarterly Payment = $27,000 / 4 = $6,750 per quarter If this copywriter receives a $10,000 invoice payment from a client, they should immediately transfer roughly $3,000 (30%) to a high-yield savings account exclusively for taxes so they are ready when the April, June, September, and January IRS deadlines arrive.
Any self-employed individual in the United States who receives 1099 income should use this calculator to estimate their liability, including:
As a general rule, freelancers in the US should set aside 25% to 30% of their gross income for taxes. This covers both federal income tax and the 15.3% self-employment tax (Medicare and Social Security) that employers normally split with employees.
Self-employment tax in the United States is a 15.3% tax that covers your contributions to Social Security (12.4%) and Medicare (2.9%). When you are a W2 employee, your employer pays half of this. When you are a freelancer, you are responsible for the entire amount.
Because freelancers don't have taxes withheld from paychecks, the IRS requires you to make four estimated tax payments throughout the year (April, June, September, January). If you wait until tax day to pay everything at once, you may be hit with underpayment penalties.