How much tax does a freelancer pay in the US?

A freelancer pays self-employment tax of 15.3% (12.4% Social Security + 2.9% Medicare) on net self-employment income, plus regular federal income tax (10–37%) on top. As a rough rule, set aside 25–30% of every payment for taxes. On $80,000 net freelance income: SE tax ≈ $11,304 + federal income tax ≈ $9,600 = about $20,900 total (26%).

When are quarterly estimated taxes due in 2026?

The 2026 quarterly estimated tax due dates are: Q1 (Jan–Mar income) due April 15, 2026. Q2 (Apr–May income) due June 16, 2026. Q3 (Jun–Aug income) due September 15, 2026. Q4 (Sep–Dec income) due January 15, 2027. Missing these deadlines triggers an underpayment penalty — typically 0.5% per month of the underpaid amount.

What is the self-employment tax rate for 2026?

The self-employment tax rate in 2026 is 15.3% on net self-employment income up to $176,100 (the Social Security wage base), then 2.9% above that. It breaks down as 12.4% Social Security + 2.9% Medicare. You can deduct half of SE tax paid (7.65%) from your gross income — this reduces your income tax bill.

What can freelancers deduct on taxes?

Common freelancer tax deductions include: home office (dedicated space), computer and equipment, internet and phone (business %), software subscriptions, health insurance premiums (100% deductible), retirement contributions (SEP-IRA up to $69,000), professional development and courses, business travel, client meals (50%), and the self-employment tax deduction (50% of SE tax paid). These can significantly reduce your taxable income.

How much should a freelancer set aside for taxes?

A commonly recommended rule is to set aside 25–30% of every payment. This covers self-employment tax (15.3%) plus federal income tax (typically 12–22% for most freelancers) minus expected deductions. If you have significant deductions (home office, equipment, retirement contributions), 25% is usually sufficient. If you have few deductions, save 30%.

What is the QBI deduction for freelancers?

The Qualified Business Income (QBI) deduction allows eligible self-employed individuals to deduct up to 20% of their qualified business income from taxable income. For example, if you earn $80,000 net freelance income, you may be able to deduct $16,000 under QBI before calculating income tax. This deduction phases out for high earners in certain service industries above $197,300 (single) in 2026.

Do I need to pay state taxes as a freelancer?

Yes — in addition to federal self-employment and income taxes, most states impose their own income tax (0–13.3%) on freelance income. States with no income tax: Texas, Florida, Nevada, Washington, Wyoming, South Dakota, Alaska. Note: self-employment tax (Social Security and Medicare) is federal only — states do not impose an additional SE tax.

Freelancer Taxes 2026: Self-Employment Tax & Deductions

> Freelancer Taxes 2026: Self-Employment Tax & Deductions