Seasonal revenue & expenses
Set-aside per quarter (proportional to revenue)
Simplified single-filer federal estimate (standard deduction, current-law brackets, no state tax, credits, or QBI). Educational only - confirm with a tax professional.
Your quarterly tax discipline plan
Your simplified federal estimate (single filer, US)
Gross revenue $65,000 with 20% business expenses → net profit $52,000.
• Self-employment tax (Social Security + Medicare): $7,347.
• Federal income tax after the $15,000 standard deduction and half-SE deduction: $3,761.
• Total estimated federal tax: $11,108 - an effective 21.4% of net profit.
The quarterly rhythm: $2,777 per quarter
• Payment 1: due April 15.
• Payment 2: due June 15.
• Payment 3: due September 15.
• Payment 4: due January 15 (next year).
The habit that saves freelancers: skim 18% off every invoice
The moment a client pays, move 18% into a separate tax savings account. Taxes become an automatic subscription instead of a quarterly emergency.
Keep more of it, legally
• Track every business expense - software, hardware, home office, mileage - each unit of expense removes both income tax AND ~15.3% SE tax.
• A solo 401(k) or SEP-IRA contribution cuts taxable income while building the retirement your employer isn't.
IMPORTANT: this is a simplified single-filer federal estimate using standard deduction and current-law brackets. It ignores state tax, credits, dependents, other income, and QBI. Use it for set-aside discipline; use a tax professional for filing.
How the freelance tax estimate works
The estimate follows the simplified federal path for a single self-employed filer: your quarterly revenues are totaled, business expenses are deducted to get net profit, and self-employment tax (Social Security and Medicare, about 15.3% with the Social Security wage-base cap applied) is computed on 92.35% of that profit. Half the SE tax is deducted, the standard deduction is applied, and federal income tax is computed through the progressive brackets. The total is split into the four quarterly payments the IRS expects.
The habit that separates calm freelancers from April-panic freelancers is the per-invoice set-aside: the moment a client pays, move the calculator's percentage into a separate tax account. Taxes stop being a quarterly emergency and become an automatic subscription. Important scope note: this is a simplified educational estimate - it ignores state tax, credits, dependents, QBI, and other situations. Use it for set-aside discipline; use a tax professional for filing.
The self-employment tax portion - roughly 15.3% of most net profit - is the piece W-2 employees never see, because their employer quietly pays half of the equivalent payroll tax on their behalf. As a freelancer, both halves land on you, which is exactly why a simple '25-30% income tax bracket' mental model badly underestimates a freelancer's real total tax rate compared to a salaried employee at the same income.
Frequently asked questions
- When are quarterly estimated taxes due?
- Generally April 15, June 15, September 15, and January 15 of the following year. Missing a quarter can trigger underpayment penalties even if you pay in full at filing - which is why the set-aside habit matters.
- What percentage of freelance income should I save for taxes?
- This calculator computes your personalized rate, but 25-30% of gross is the common working range for US freelancers once self-employment and income tax are combined. State tax adds more on top in most states.
- What counts as a business expense?
- Ordinary and necessary costs of the work: software, hardware, home-office share, professional services, business travel and mileage. Every legitimate expense reduces both income tax and ~15.3% SE tax - track them all year, not in April.
- Is this calculator enough to file my taxes?
- No - it's a planning estimate for a simplified single-filer case, ignoring state tax, credits, and deductions beyond the standard one. It gets your set-aside discipline right; a tax professional or proper software gets your filing right.
- Do I still owe quarterly taxes if I also have a W-2 job?
- Possibly not, if your W-2 employer's withholding already covers your total tax liability including the freelance income - you can sometimes increase your W-2 withholding instead of filing separate quarterly payments. Run the numbers with a tax professional the first year to see which path avoids underpayment penalties.