Self-Employment Tax: 15.3%
- Social Security: 12.4% (on first $168,600)
- Medicare: 2.9% (no limit)
- Additional Medicare: 0.9% (on income over $200,000)
| Income Range | Tax Rate |
|---|---|
| $0 - $11,925 | 10% |
| $11,926 - $48,475 | 12% |
| $48,476 - $103,350 | 22% |
| $103,351 - $197,300 | 24% |
| $197,301 - $250,525 | 32% |
| $250,526 - $626,350 | 35% |
| Over $626,350 | 37% |
- Q1: April 15, 2026
- Q2: June 15, 2026
- Q3: September 15, 2026
- Q4: January 15, 2027
- Home Office - Simplified: $5/sq ft (max 300 sq ft = $1,500)
- Health Insurance - 100% deductible for self-employed
- Equipment - Section 179 allows full deduction up to $1,160,000
- Software/Subscriptions - Business tools fully deductible
- Professional Development - Courses, books, conferences
- Business Travel - Mileage rate: 67 cents/mile (2026)
Most freelancers undercharge because they forget:
- You pay BOTH employee AND employer portions of FICA (15.3%)
- Health insurance costs ($6,000-$15,000/year)
- Non-billable hours (30-40% of your time)
- Vacation/sick days (no paid time off)
- Business expenses and overhead
Free Calculator: https://hourly-rate-calculator.tp-business.workers.dev
Factors in all taxes, expenses, and desired take-home pay to show your minimum hourly rate.
Last updated: March 2026