Free self-employed tax estimator with quarterly payments & deductions
Everything you need to know about freelance taxes in 2025
As a general rule, freelancers should set aside 25-30% of their gross income for taxes. This covers federal income tax, self-employment tax (15.3%), and state taxes.
However, your exact amount depends on your income level, filing status, and state. Use our calculator above to get a personalized estimate based on your specific situation. High earners may need to set aside 35-40%, while those with lower incomes might need only 20-25%.
Self-employment tax is 15.3% of your net earnings (gross income minus business expenses). It covers Social Security (12.4%) and Medicare (2.9%) taxes.
Unlike W-2 employees who split these taxes with their employer, freelancers pay the full amount. The good news: you can deduct 50% of your self-employment tax from your gross income when calculating your federal income tax, which reduces your overall tax burden.
The 2025 quarterly tax deadlines are:
• Q1 2025: April 15, 2025 (for income Jan 1 - Mar 31)
• Q2 2025: June 16, 2025 (for income Apr 1 - May 31)
• Q3 2025: September 15, 2025 (for income Jun 1 - Aug 31)
• Q4 2025: January 15, 2026 (for income Sep 1 - Dec 31)
Missing these deadlines can result in penalties and interest charges from the IRS, so mark your calendar!
Freelancers can deduct ordinary and necessary business expenses, including:
• Home office expenses (if you have a dedicated workspace)
• Internet and phone bills (business portion)
• Software subscriptions and tools
• Professional development and courses
• Business travel and meals (50% for meals)
• Marketing and advertising costs
• Health insurance premiums (self-employed health insurance deduction)
• Retirement contributions (SEP IRA, Solo 401k)
Keep detailed records and receipts for all deductions. Consider using tax software to automatically track and categorize expenses.
It depends on your state. Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
If you live in any other state, you'll owe state income tax on your freelance earnings. State tax rates vary widely, from around 3% to over 13% (California). Our calculator includes estimates for major states, but check your state's tax website for exact rates and rules.
Some cities also impose local income taxes, so research your specific location's requirements.