Taxes when you're self-employed
When you work as a freelancer or independent contractor, nobody withholds taxes from your pay. You owe two federal taxes on your profit:
- Self-employment tax of 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of your net earnings. This replaces the FICA taxes an employer would split with you. Use the self-employment tax calculator.
- Income tax at your regular federal bracket rates (10% to 37%), plus any state income tax. The 1099 tax calculator combines both.
Because no one withholds for you, the IRS expects you to pay during the year in four installments. The quarterly estimated tax calculator shows how much to pay each quarter and how to avoid underpayment penalties.
2026 key numbers for the self-employed
| Item | 2026 |
|---|---|
| Self-employment tax rate | 15.3% (12.4% + 2.9%) |
| Social Security wage base | $184,500 |
| Additional Medicare tax | 0.9% above $200,000 (single) / $250,000 (joint) |
| Standard deduction | $16,100 single / $32,200 married filing jointly |
| Quarterly due dates | Apr 15, Jun 15, Sep 15 2026 and Jan 15 2027 |
Pricing your work
A freelance rate has to cover your taxes, health insurance, retirement savings, unpaid time off and the hours you spend on non-billable work. The freelance hourly rate calculator works backward from the income you want, and the 1099 vs W-2 calculator shows what contract rate equals a salaried job offer.