Estimated Annual Tax
$800.00
Quarterly Payment
$200.00
How it works
The Freelance Tax Estimator calculates the estimated quarterly and annual tax liability for self-employed individuals in the US — including self-employment tax (SE tax), federal income tax, and state income tax. Enter your gross freelance income and deductible business expenses to see your net tax obligation.
Freelancers and self-employed workers are responsible for their own tax payments — there is no employer withholding. Failing to make quarterly estimated payments triggers underpayment penalties. This estimator helps you know how much to set aside from each client payment and when to make quarterly payments.
How to use it: enter your gross freelance income for the year (or project it from year-to-date). Enter deductible business expenses (home office, equipment, software, professional services, health insurance premiums). Select your filing status and state. The calculator shows: - Self-employment tax (15.3% on net SE income up to the Social Security wage base, 2.9% above) - Half of SE tax as an above-the-line deduction - Taxable income after deductions - Federal income tax by bracket - State income tax estimate - Total tax liability and effective tax rate - Quarterly estimated payment amounts and due dates (April 15, June 15, September 15, January 15)
Quarterly safe harbor: to avoid penalties, pay either 100% of last year's tax (110% if income > $150,000) or 90% of this year's liability. The calculator highlights which safe harbor threshold is lower for your situation.
Privacy: income and tax data is processed locally.
Frequently Asked Questions
- US quarterly estimated tax due dates: Q1 (Jan–Mar) due April 15; Q2 (Apr–May) due June 15; Q3 (Jun–Aug) due September 15; Q4 (Sep–Dec) due January 15 of the following year. Note the unequal quarter lengths. Missing a quarterly payment by 1 day starts accruing underpayment penalties.
- Self-employment tax is 15.3% on net SE income (up to the Social Security wage base of $168,600 in 2024, then 2.9% above). Employees pay 7.65% in FICA taxes; employers match the other 7.65%. Freelancers pay both sides — hence the 15.3% total. The IRS allows deducting half of SE tax as an above-the-line deduction, reducing the effective rate slightly.
- Deductible business expenses include: home office (dedicated workspace, proportional to home square footage), computer and equipment, software and subscriptions used for work, professional development and training, professional memberships and dues, business phone and internet (work-use percentage), travel for business, health insurance premiums (if self-employed), and professional services (accountant, lawyer). Personal expenses or mixed-use items require careful allocation.
- An LLC (single-member) is taxed the same as a sole proprietor — no SE tax savings. An S-Corp election requires paying yourself a 'reasonable salary' (subject to payroll taxes) and taking remaining profits as distributions (not subject to SE tax). S-Corp saves SE tax on distributions but adds payroll complexity and costs. Generally, S-Corp becomes worthwhile at net income above $40,000–$60,000/year — consult a CPA for your situation.