Freelance Take-Home Pay Calculator
Tax year: 2026 · Last updated 2026-06-21 · Source: IRS
Reviewed by Dr. Julian Vance, co-founder, lead data architect & primary author · 2026-06-21
Total billed to clients before any deductions.
Software, equipment, home office, professional fees — Schedule C deductions.
W-2 wages, a spouse's income, interest, etc.
Annual take-home pay
$63,353
70.4% of revenue · 18.5% effective tax rate
Monthly breakdown
How freelance take-home pay is calculated
As a freelancer, no one withholds tax from your payments. Your take-home is your net profit after two layers of federal tax: self-employment tax first, then federal income tax on what remains after several deductions.
The steps
- Net profit = annual revenue − deductible business expenses (Schedule C).
- Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of net profit. Social Security is capped at the $184,500 wage base for 2026.
- Adjusted gross income = net profit − the deductible half of SE tax (and any other income you enter).
- Taxable income = AGI − standard deduction − 20% QBI deduction (if you qualify).
- Income tax is applied using the federal marginal brackets for your filing status.
- Take-home = net profit − SE tax − income tax.
A worked example
A single freelancer with $90,000 in revenue and $10,000 in business expenses in 2026:
- Net profit: $80,000
- SE tax: ~$11,304 (deductible half: $5,652)
- AGI: $80,000 − $5,652 = $74,348
- Taxable income: $74,348 − $16,100 standard deduction − $14,750 QBI deduction = $43,498
- Income tax: ~$5,100
- Take-home: $80,000 − $11,304 − $5,100 ≈ $63,596 (~79% of net profit)
Business expenses are deducted before any tax is computed, so a $1 write-off saves you more than a dollar-for-dollar reduction in income tax — it also reduces your SE tax base.
This is a federal estimate using the standard deduction. State taxes, itemized deductions, capital gains, and credits beyond withholding are not included.
Sources
Frequently asked questions
What percentage of freelance income goes to taxes?+
It depends on your income and filing status, but most freelancers at $50,000 to $100,000 net profit pay 25 to 35% in combined federal taxes — self-employment tax (about 14.1% of net profit) plus federal income tax on what's left after deductions. This calculator shows the exact split for your numbers.
What is the deductible half of self-employment tax?+
When you compute self-employment tax, you can deduct half of it from your gross income before calculating income tax. This mirrors the benefit W2 employees get — their employer pays the other half of Social Security and Medicare, which never shows up as income. The deductible half reduces your adjusted gross income and lowers your income tax bill.
How much should I set aside from each freelance payment?+
A practical rule: put 25 to 30% of every payment into a separate account. If your effective rate turns out lower you keep the extra as a buffer. Pay quarterly estimated taxes from that account on the IRS due dates (April 15, June 15, September 15, and January 15). Use the quarterly estimated tax calculator on this site for the exact amounts.
What is the QBI deduction and do I qualify?+
The Qualified Business Income deduction lets many self-employed people deduct 20% of their net business income from taxable income. For 2026 you generally qualify if your taxable income is under $201,775 (single) or $403,550 (married filing jointly). Above those amounts, wage and business-type limits apply. If you're over the threshold, uncheck the QBI box in the calculator.
Does this calculator include state income tax?+
No — this is a federal-only estimate. State income tax rates vary from 0% (Texas, Florida, and several others) to over 13% (California). Add your state's rate to get a full picture of your tax burden.
Related calculators
Self Employment Tax Calculator
Work out your Social Security and Medicare tax from net profit, with the deductible half and a full breakdown.
Quarterly Estimated Tax Calculator
Figure out what to send the IRS each quarter — income tax plus self employment tax, with due dates and safe harbor tips.
1099 vs W2 Take-Home Pay Calculator
Compare your actual take-home as a 1099 contractor versus a W2 employee at the same gross pay.