Know how much to set aside. This free freelance tax calculator estimates self-employment and income tax on your freelance or side-hustle profit, and shows what you keep — works for any country with your own rates.
Estimate only. You supply the rates, since self-employment and income tax vary by country, year and income. A common US SE-tax rate is 15.3%.
How the Freelance Tax Calculator Works
Self-employed income isn’t taxed the same way a paycheck is — you’re generally on the hook for both self-employment tax and ordinary income tax on your net profit. The freelance tax calculator estimates how much of your freelance income to set aside for both.
Formula: Net Profit = Self-Employed Income − Business Expenses. Total Tax = Net Profit × (Self-Employment Tax Rate + Income Tax Rate). After-Tax Income = Net Profit − Total Tax. Because self-employment tax rates and income tax brackets vary by country, year and income level, you enter your own rates rather than the calculator assuming a fixed one.
- Self-employed income — total freelance or side-hustle income earned for the year, before expenses
- Business expenses — deductible costs of running your freelance business, subtracted before tax is calculated
- Self-employment tax rate — the rate you expect to pay on net profit for self-employment tax (such as Social Security and Medicare-type contributions), which you supply
- Income tax rate — your expected ordinary income tax rate on the same net profit, which you supply
Example Scenarios
| Self-Employed Income | Business Expenses | SE Tax Rate | Income Tax Rate | Total Tax |
|---|---|---|---|---|
| $60,000 | $9,000 | 15.3% | 12% | $13,923 |
| $40,000 | $5,000 | 15.3% | 10% | $8,855 |
| $100,000 | $20,000 | 15.3% | 22% | $29,840 |
| $25,000 | $3,000 | 15.3% | 0% | $3,366 |
| $80,000 | $0 | 12% | 15% | $21,600 |
Using the Freelance Tax Calculator Through the Year
A freelance tax calculator is most useful as a regular habit, not a once-a-year scramble before the filing deadline.
- Enter profit, not revenue. Subtract allowable business expenses first, because tax is charged on what is left.
- Rerun the freelance tax calculator each month or quarter with year-to-date profit, and move the suggested amount into a separate savings account.
- Watch for advance payments. Many tax systems expect self-employed people to pay estimated tax during the year, not only at the end.
The freelance tax calculator uses the rates you supply, so a single flat rate will overstate tax at lower profits and understate it at higher ones. If your country taxes in bands, use your expected effective rate.
This is an estimate, not personalised tax advice; rules, allowances and deadlines vary by country and year. For large or irregular income, an accountant can check the freelance tax calculator figures against your real position. The self-employment article on Wikipedia covers how different countries treat the self-employed, useful context for your freelance tax calculator inputs.
Freelance Tax Calculator FAQ
What self-employment tax rate should I enter?
This depends on your country and how self-employment contributions are structured there. In the US it commonly combines Social Security and Medicare components, but rates and rules change over time, so confirm the current figure with an official source or a tax professional before relying on it.What counts as a deductible business expense?
Generally, ordinary and necessary costs of running your freelance work, such as software, equipment, a home office portion, business insurance and professional fees. Deductibility rules vary by country, so check what qualifies where you file.Why do I enter my own income tax rate instead of the calculator finding it?
Income tax brackets depend on your country, total income, filing status, deductions and the tax year, which this calculator doesn’t track. Entering your own rate keeps the estimate flexible for any location rather than tying it to one country’s rules.Does this calculator handle quarterly estimated tax payments?
No, it estimates your total annual tax liability so you know how much to set aside overall. If your tax system requires quarterly payments, divide the estimated total tax by the number of payment periods as a starting point.How is this different from the Payroll Calculator?
The payroll calculator estimates net pay for a W-2 style employee with tax withheld each pay period. This calculator is built for self-employed income, where you owe both self-employment tax and income tax on net profit yourself, typically without an employer withholding anything.Should I use my gross income or net profit as the “self-employed income” field?
Enter your gross self-employed income for the year in that field, then let the business expenses field subtract your costs. The calculator computes net profit for you and applies both tax rates to that profit figure.Related Calculators
Once you know how much tax to set aside, the freelance rate calculator can help you build that cost into the hourly rate you charge. For a US-specific breakdown of Social Security and Medicare contributions, see the self-employment tax calculator, or check your overall tax bracket with the income tax calculator.