🧮 FREE · 2026 IRS RULES · NO ACCOUNT
Freelance Tax Calculator (2026)
What freelancing actually costs in tax, on 2026 rules.
Freelance income is taxed twice over: self-employment tax at 15.3% for Social Security and Medicare, and ordinary income tax at your bracket. Most surprises come from forgetting the first one exists.
Both are charged on profit rather than revenue. Software, equipment, a home office, mileage, professional fees — legitimate business costs reduce the figure everything else is calculated from, which is why expense tracking is worth more than it looks.
The qualified business income deduction can take up to 20% off the taxable portion of that profit. It phases out above $201,750 of taxable income for a single filer, or $403,500 filing jointly, and phases out faster for consultants, coaches and other service businesses.
If you also hold a salaried job, or file jointly with someone who does, that income pushes your freelance profit into higher brackets. Working the freelance side out in isolation is the most common way these estimates go wrong.
Common questions
Is freelance income taxed more than a salary?
Slightly, in practice. An employer pays half your Social Security and Medicare; freelancing you pay both halves, though half of it is deductible against income tax.
What can I actually deduct?
Costs that are ordinary and necessary for the work — software, equipment, professional services, business mileage, a home office used regularly and exclusively. Personal expenses do not qualify, and mixed-use items count only in proportion.
Do I need an LLC to deduct expenses?
No. A sole proprietor claims business expenses on Schedule C. An LLC may make sense for liability, but it is not what makes a deduction valid.
What if freelancing is a side income?
It still counts. Enter your salary and withholding as well — the calculator needs both to place your freelance profit in the right bracket.