Enter your freelance income and get an instant breakdown of federal, state, and self-employment taxes. Know your exact number so you never get caught short.
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Your federal, self-employment, and state tax line items, your monthly and quarterly set-aside amounts, next deadline, and income breakdown chart, unlocked here and emailed to you.
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This calculator provides estimates for educational purposes only. It is not tax advice and should not be used as a substitute for professional guidance. Tax laws change frequently. Consult a qualified CPA or tax professional for your specific situation. State tax calculations use simplified flat or top-marginal rates and may not reflect credits, local taxes, or bracket nuances. Self-employment tax is calculated on 92.35% of net self-employment income. Federal brackets reflect 2026 projected rates. No personal data is collected or transmitted; all calculations happen in your browser.
This tool calculates the exact percentage and dollar amount of freelance income you should set aside for taxes. It starts with your gross freelance or 1099 income, subtracts any deductible business expenses to get your net self-employment income, then applies three tax layers. First, self-employment tax: 15.3% on 92.35% of your net SE income (12.4% Social Security, capped at $176,100 combined with W-2 wages, plus 2.9% Medicare with an additional 0.9% above the $200,000/$250,000 threshold). Second, federal income tax using 2026 projected marginal brackets after deducting the standard deduction and the above-the-line deduction for half of your SE tax.
Third, state income tax using simplified effective rates for all 50 states plus DC. If you also have W-2 income, the calculator isolates the marginal federal tax caused by your freelance income (total federal tax on combined income minus federal tax on W-2 income alone) so you only set aside the portion attributable to self-employment. The result is divided into monthly and quarterly amounts to match either a savings-first approach or the IRS quarterly payment schedule via Form 1040-ES.
Keisha is a freelance photographer in New York earning $85,000 per year in 1099 income. She has $10,000 in deductible business expenses (equipment, editing software, studio rental) and files as single. She does not have a W-2 job.
Her net self-employment income is $75,000. Self-employment tax on 92.35% of that ($69,263) comes to $10,597. She deducts half of SE tax ($5,299) above the line, giving her an AGI of $69,701. After the $15,700 standard deduction, her taxable income is $54,001. Federal income tax on that is approximately $7,087. New York state tax at roughly 8.82% on her taxable income adds about $4,763. Total tax: $22,447, which is 26.4% of her gross freelance income.
Keisha should set aside $1,871 per month or $5,612 per quarter. Compare that to the generic "set aside 30%" advice, which would have her saving $25,500. The calculator shows she actually needs 26.4%, saving her from over-reserving $3,053 that could go toward business growth instead. If Keisha lived in Texas (no state tax), her set-aside would drop to about 20.8%, illustrating how much state matters in this calculation.
Use this calculator at the start of each year to establish your monthly savings target, then revisit it whenever your income changes significantly. If you land a large client, pick up a new revenue stream, or lose a major contract, re-run the numbers to adjust your set-aside percentage. It is also useful before each quarterly tax deadline to verify your payment amount. If you are new to freelancing and have no idea where to start, this tool replaces the vague "save 25 to 30 percent" advice with a personalized number based on your actual income, state, and filing status. Combine it with the Quarterly Tax Deadline Dashboard to stay on schedule with IRS payments.
The "save 30%" rule of thumb is a broad average that does not account for your specific tax situation. A freelancer earning $40,000 in Florida (no state tax) might only need to set aside 20%, while someone earning $150,000 in California could need 38%. Your filing status, state tax rate, income level, and deductible expenses all shift the number. Using the wrong percentage means either overpaying (tying up cash you could use) or underpaying (facing penalties and a surprise bill in April).
Self-employment tax is the freelancer's version of FICA (Social Security and Medicare). W-2 employees split FICA with their employer: each pays 7.65%. As a self-employed person, you are both the employer and the employee, so you pay the full 15.3%. This is calculated on 92.35% of your net self-employment income. The Social Security portion (12.4%) only applies to income up to $176,100 in 2026. Medicare (2.9%) applies to all earnings, with an additional 0.9% on income above $200,000 for single filers. The IRS lets you deduct half of your SE tax from your adjusted gross income, which provides partial relief.
Monthly works best for cash flow management. Every time you receive freelance income, transfer the calculated percentage to a separate savings account immediately. Then, when the quarterly IRS deadline arrives, the money is already set aside and you simply submit the payment. This avoids the scramble of finding a large sum four times per year. Some freelancers even set aside per invoice, transferring 25 to 30 percent as soon as each client payment clears.
If you have a W-2 job, your employer already withholds income tax and FICA on those wages. Your freelance income stacks on top of your W-2 income, which means it may be taxed at a higher marginal bracket. However, your W-2 wages also count toward the Social Security wage base cap ($176,100), which can reduce the Social Security portion of your SE tax. This calculator handles both effects: it computes the marginal federal tax caused specifically by your freelance income and adjusts the SE tax calculation for your W-2 wages.
If you owe $1,000 or more in taxes at filing time and did not make quarterly estimated payments, the IRS charges an underpayment penalty. The current penalty rate is approximately 8% annualized, calculated on the amount of each missed quarterly payment from its due date until it is paid. You can avoid penalties by paying at least 90% of your current year's tax liability through quarterly payments, or by paying 100% of your prior year's tax (110% if your AGI exceeded $150,000). Even if your income is unpredictable, paying something each quarter is always better than paying nothing.