Estimate your taxes, set a profitable hourly rate, and plan quarterly payments — instantly, in your browser.
Estimate your IRS self-employment tax (15.3%) and federal income tax based on your annual gross income.
Based on 2024 IRS tax rates — for US sole proprietors and single-member LLCs
ⓘ Estimates use 2024 federal income tax brackets and the standard deduction ($14,600 for single filers). State income tax is not included. Consult a CPA for personalized advice.
When you're self-employed, you pay both sides of FICA — the employee half (7.65%) and the employer half (7.65%), for a combined rate of 15.3%. This covers Social Security (12.4%) and Medicare (2.9%).
The good news: you can deduct half of your SE tax on your federal income tax return (Schedule 1), which lowers your adjusted gross income and reduces the income tax you owe.
This calculator applies the IRS rule that SE tax is assessed on 92.35% of net earnings (not 100%), which accounts for the deductible employer portion.
Find the minimum hourly rate you must charge to hit your income goal — after accounting for taxes, overhead, and time off.
Accounts for taxes, business overhead, and non-billable hours
ⓘ The recommended rate adds ~30% for taxes, ~15% for business expenses, and ~10% buffer for non-billable time (admin, proposals, client onboarding). Round up to the nearest $5 or $10 when quoting clients.
Many new freelancers set rates based on a simple division of desired income by hours worked — and then wonder why they're always broke. As a self-employed worker, your rate must cover:
Calculate your four IRS estimated tax payments and the exact dates they're due — so you're never caught off guard.
Covers SE tax + federal income tax for 2024/2025 due dates
ⓘ The IRS safe harbor rule requires paying at least 90% of the current year's tax (or 100% of last year's) to avoid underpayment penalties. Pay via IRS Direct Pay or EFTPS. State estimated taxes may apply separately.
If you expect to owe at least $1,000 in federal taxes for the year, the IRS generally requires you to make quarterly estimated payments. Skipping them doesn't mean you can just pay it all in April — the IRS charges an underpayment penalty on each missed installment, even if you pay your full balance by Tax Day.
Set a calendar reminder for each due date. Better yet, open a dedicated savings account and transfer 25–30% of every payment you receive. That way the money is already set aside when the deadlines come.
Our blog breaks down everything from deductions to business structures — all written in plain English for freelancers.