Freelance tax tools
Freelance Tax Tools — Calculate, Estimate, and Save
Five simple steps to understand your tax obligations as a freelancer or 1099 contractor. Start with your rate, estimate what you owe, plan payments, track deductions, and compare W-2 vs 1099 — all in one place.
1. Calculate Your Freelance Rate
Before you think about taxes, know your number. Set a profitable hourly rate that covers your income goals and business overhead.
Tip: Add 25-30% to your rate to cover self-employment tax. Use the next step to see exactly how much tax you'll owe.
2. Estimate Your Self-Employment Tax
Now that you have your rate, see how much you'll owe in self-employment tax and income tax. The 15.3% SECA tax catches many new freelancers off guard — plan ahead.
Includes SECA tax (15.3%), income tax brackets, and a recommended quarterly payment amount. Results in under 30 seconds.
3. Plan Quarterly Tax Payments
If you expect to owe $1,000 or more, the IRS requires quarterly estimated payments. Use this calculator to plan your four payment dates and avoid underpayment penalties.
Deadlines: April 15, June 15, September 15, January 15. Use the safe harbor rule to avoid penalties.
4. Track Your Tax Deductions
The biggest advantage of being self-employed? Tax deductions. Home office, mileage, equipment, health insurance, and retirement contributions can reduce your taxable income by thousands.
Track home office ($5/sq ft), mileage (IRS rate), equipment, health insurance (100% deductible), and retirement contributions all in one place.
5. Compare W-2 vs 1099
Torn between a W-2 job offer and going 1099? This calculator shows the true after-tax, after-benefits difference. Salary isn't the whole picture — factor in health insurance, 401(k) match, PTO, and self-employment tax.
A common rule: charge 30-50% more as a 1099 contractor to match W-2 total compensation. Run the numbers to see your exact break-even point.
Frequently Asked Questions
How much should a 1099 contractor set aside for taxes?+
Most 1099 contractors should set aside 25-35% of their gross freelance income for taxes. This covers self-employment tax (15.3%), federal income tax (based on your bracket), and state income tax where applicable. Use our 1099 Tax Calculator to get a personalized estimate based on your income, location, and filing status.
Do I need to pay quarterly estimated taxes?+
Yes, if you expect to owe $1,000 or more in taxes for the year. The IRS requires freelancers and self-employed individuals to pay estimated taxes quarterly on April 15, June 15, September 15, and January 15. Use our Quarterly Tax Calculator to determine your exact payment amounts and avoid underpayment penalties.
What is the self-employment tax rate?+
The self-employment tax rate is 15.3% of your net earnings, consisting of 12.4% for Social Security and 2.9% for Medicare. You can deduct half of this (7.65%) as an adjustment to income. The Social Security portion only applies to the first $176,100 of earnings in 2026.
How much more should I charge as a 1099 contractor vs W-2?+
As a 1099 contractor, you should typically charge 30-50% more than your W-2 hourly equivalent. This accounts for self-employment tax (7.65% additional), health insurance, retirement contributions, paid time off, and business expenses. Our W-2 vs 1099 Calculator shows the exact break-even point based on your specific situation.
What is the biggest tax deduction for freelancers?+
The home office deduction is one of the biggest tax write-offs for freelancers. Using the simplified method, you can deduct $5 per square foot up to 300 square feet ($1,500 max). The regular method can yield even more by deducting a percentage of rent, utilities, internet, and insurance. Use our Freelance Deduction Calculator to estimate your total savings.
Related Tax Guides
A complete walkthrough of self-employment taxes, deductions, and quarterly payments for freelancers.
Step-by-step guide to estimated tax payments: deadlines, safe harbor rules, and how to file.
The full list of tax write-offs available to self-employed individuals and small business owners.
Ready to Take Control of Your Freelance Taxes?
You don't need an accountant to understand your tax situation. Start with your rate, estimate what you owe, and plan ahead. All tools are free, with no sign-up and no email required.