Freelance Effective Tax Rate Calculator

Your effective tax rate is the total tax you owe divided by your total net self-employment income. It is a blended average across all dollars earned. At $80,000 of net profit, a single filer pays SE tax, federal income tax after the standard deduction, and any applicable state income tax. The combined effective rate is often between 20% and 30%, even though your marginal bracket alone may be 22%.

Your marginal rate is the tax you pay on the next dollar earned. Your effective rate is the average rate across all dollars. For example, a single filer at $80,000 net profit may be in the 22% federal bracket (marginal), but their federal income tax as a fraction of total income is much lower because the first $29,200 of taxable income is taxed at 10% and 12%. Always plan withholding or quarterly estimates using the marginal rate on incremental income, but use the effective rate to understand your overall tax burden.

Yes. Self-employment tax (SE tax) is Social Security and Medicare combined, at 15.3% on 92.35% of net profit up to the Social Security wage base ($184,500 for 2026) and 2.9% above that. SE tax is a major part of a freelancer's total tax burden and is included in the all-in effective rate shown by this calculator. One-half of SE tax is deductible above the line, which reduces federal AGI and state taxable income.

The combined marginal rate is the federal income tax rate plus the SE tax rate on the next dollar of profit. Below the Social Security wage base ($184,500), the SE marginal rate is 15.3% × 92.35% = approximately 14.1%. Above the wage base, only Medicare applies: 2.9% × 92.35% = approximately 2.7%. For a single filer in the 22% bracket earning under $184,500, the combined marginal rate is roughly 36%. This is the rate that matters for financial planning on marginal income.

Above-the-line deductions that reduce federal AGI (and most states' taxable income) include: the deductible half of SE tax (automatic), retirement contributions (Solo 401(k)/SEP-IRA), and self-employed health insurance premiums. Below-the-line deductions through Schedule C (mileage, home office, equipment) reduce net profit, which also reduces SE tax. This calculator includes an optional field to enter additional above-the-line deductions.

Most financial advisors suggest setting aside 25% to 35% of net income depending on your income level and state. Use this calculator to find your specific all-in effective rate and set that percentage aside. Add a buffer for unexpected income increases. Quarterly estimated tax payments are due April 15, June 16, September 15, and January 15 for the prior year's underpayment, per the IRS safe-harbor rule.

Filing status determines your standard deduction and tax brackets. Single filers have a $15,750 standard deduction in 2026; married filing jointly filers have $31,500. Married filing jointly typically results in a lower effective rate at the same income because the brackets are wider. Head of household filers have a $22,500 standard deduction and moderately wider brackets than single filers.

The national calculator shows federal and SE tax only. Select your state from the state pages (linked below) to include state income tax in the effective rate. State rates and bases vary: Florida has no income tax, Pennsylvania taxes net profits at a flat 3.07%, and California's top rate is 13.3%. The all-in effective rate including state can differ significantly by location.