Freelance Rate Calculator — United States
US freelancers pay federal income tax plus self-employment tax — 15.3% covering Social Security (12.4% up to the annual wage base) and Medicare (2.9%). Because no employer withholds tax for you, the IRS expects quarterly estimated payments (Form 1040-ES). State income tax comes on top in most states, which is why the classic advice is to set aside 25–35% of every invoice.
Tax estimate: 2026 tax year (single filer, federal only). Details in theUnited States tax calculator.
What US freelancers need to price in
- Self-employment tax applies to 92.35% of net earnings; half of it is deductible from taxable income.
- Figures here are federal only — add your state income tax (0% in TX/FL/WA and six others, up to ~13% in CA).
- Quarterly estimated taxes are due in April, June, September and January (Form 1040-ES).
- An S-corp election can reduce SE tax at higher profits — talk to a CPA above roughly $80–100k.
Data reviewed: August 2026. Primary source:IRS — Self-Employed Individuals Tax Center.
Worked example
Targeting $90,000 pre-tax with$6,000 of annual costs, billing 25 hours a week with 6 weeks off, gives a billable year of 1,150 hours. The calculator adds your margin, divides, and also estimates the tax bite on that income under the 2026 tax year (single filer, federal only) — so you can see in one glance what the rate on your invoices turns into in your pocket.
Frequently asked questions
What is a good freelance hourly rate in the United States?
There is no universal “good” rate — it depends on your field, seniority and clients. What matters is that your rate covers your target income, your business costs, your unbillable time, and the tax profile described below. Use the calculator above with honest inputs; a US freelancer billing 25 hours a week with 6 weeks off needs a rate roughly double the equivalent employee hourly wage to end up in the same place.
How much should a US freelancer set aside for taxes?
A common rule of thumb is 25–35% of net income (after business expenses). The right number depends on your bracket and state: a freelancer netting $80,000 in a no-income-tax state might owe roughly 22–26% all-in, while the same income in California can push past 32%. Use the calculator above with your own numbers, then add your state rate.
Is this rate before or after tax?
Before tax. The target income you enter is pre-tax income; the calculator tells you what to bill to reach it. To see what you'll keep, run your profit through the United States Tax Set-Aside Calculator linked below.
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Estimates for planning only — not tax or financial advice. Tax calculation is simplified (see the tax calculator for assumptions) and excludes state/provincial variations where noted. Full disclaimer.