Estimate your tax bill and see how much you actually keep from your hard-earned income.
Live projections based on your current inputs.
A safe rule of thumb for US-based freelancers is to set aside 25–30% of every payment you receive into a separate savings account. This covers the 15.3% self-employment tax (Social Security and Medicare) plus federal and state income tax. If you're in a high-income-tax state like California or New York, lean toward 30–35%.
The IRS expects self-employed workers earning more than $1,000/year in taxes to pay quarterly — in April, June, September, and January. Missing these payments triggers an underpayment penalty even if you pay in full at tax time. Use the estimator above to calculate your quarterly payment amount.
When you are self-employed, you are responsible for both the employer and employee portions of social security and medicare taxes, often referred to as the self-employment tax. This is in addition to standard income taxes. Navigating this can be complex, but a good rule of thumb is to set aside 25-30% of your gross earnings in a separate high-yield savings account or pay estimated quarterly taxes to the IRS.