The complete financial resource for freelancers, consultants, gig workers, and the self-employed. Everything you need — in one place, finally free.
73M
US Freelancers
15.3%
Self-Employment Tax
$70K
Solo 401k Limit 2025
4×/yr
Quarterly Tax Deadlines
Quarterly Estimated Tax Calculator
Self-employed people must pay taxes 4 times per year. Missing deadlines means IRS penalties. This calculator tells you exactly what you owe each quarter.
Annual Gross Revenue
Annual Business Expenses
Filing Status
State Tax Rate — 5%
Net SE Income (after expenses)—
SE Tax Deduction (half of SE tax)—
Self-Employment Tax (15.3%)—
Federal Income Tax (estimated)—
State Tax (estimated)—
Total Annual Tax Burden—
Set Aside % of Each Invoice—
Each Quarterly Payment Due—
📅 2025 Quarterly Tax Deadlines
Q1 (Jan–Mar): April 15, 2025 · Q2 (Apr–May): June 16, 2025 · Q3 (Jun–Aug): September 15, 2025 · Q4 (Sep–Dec): January 15, 2026
Safe harbor rule: Pay at least 100% of last year's tax liability (110% if income over $150K) to avoid underpayment penalties — even if you end up owing more.
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The Tax Savings Account Strategy
Open a dedicated savings account labeled "Taxes." Every time a payment arrives, immediately transfer your tax percentage into it. Never touch it. Pay quarterly from it. This single habit eliminates tax-time panic for every freelancer who adopts it.
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Self-Employment Tax Explained
W-2 employees split the 15.3% FICA tax with their employer — each pays 7.65%. As a freelancer, you pay both sides: the full 15.3% on 92.35% of your net income. However, you can deduct half (7.65%) as a business expense on your federal return, reducing your adjusted gross income.
Solo 401(k) vs SEP IRA Calculator
Freelancers have access to some of the most powerful retirement accounts available. See which maximizes your tax deduction and retirement savings.
Net Self-Employment Income
Your Age
Solo 401(k) Employee Contribution (max)—
Solo 401(k) Employer Contribution (25% of compensation)—
Total Solo 401(k) Max Contribution—
SEP IRA Max (25% of net SE income)—
Solo 401(k) Advantage Over SEP—
Federal Tax Saved (at 22% bracket)—
💡 Why the Solo 401(k) Almost Always Wins
The Solo 401(k) allows both employee contributions ($23,500 in 2025 as the "employee") AND employer contributions (up to 25% of net compensation). At lower income levels, the employee contribution portion lets you shelter far more than a SEP IRA allows. For incomes under $200K, the Solo 401(k) almost always produces a larger contribution and larger tax deduction.
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Solo 401(k) Rules
Who qualifies: Self-employed with no employees (except a spouse). Deadline to open: December 31 of the tax year. Contribution deadline: Tax filing deadline (April 15 + extensions). Roth option: Available at most providers. Loan provision: Borrow up to 50% of balance or $50K. Best providers: Fidelity, Schwab, or Vanguard.
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SEP IRA Rules
Who qualifies: Any self-employed person, including those with employees. Contribution limit: 25% of net SE compensation (max $70K in 2025). Deadline to open: Tax filing deadline including extensions. Simplicity: Easier to administer than Solo 401(k). Best for: Very high earners or those with employees.
Health Insurance as a Freelancer
Health insurance is the biggest operational expense for most freelancers — and the most anxiety-inducing. Here are your actual options, compared honestly.
Option
Monthly Cost (est.)
Best For
Key Considerations
ACA Marketplace
$200–$600 after subsidies
Most freelancers
Income-based subsidies; loss of job is qualifying event; open enrollment Nov-Jan
Spouse's Employer Plan
$100–$400 employee share
Married freelancers
Usually the cheapest option if available; spouse's employer may not allow add-ons
Full cost of employer + employee premium; max 18 months; expensive but continuous
Healthcare Sharing Ministry
$150–$400
Healthy, low-use people
Not insurance; significant coverage gaps; not ACA-compliant; religious requirements
Medicaid
$0
Low-income freelancers
If income under ~138% FPL; variable income may affect eligibility monthly
Self-Employed Health Insurance Deduction Calculator
As a self-employed person, you can deduct 100% of health insurance premiums (for yourself and family) directly from your income — not just as a business expense, but as an above-the-line deduction reducing your AGI. This is one of the most valuable deductions available.
Annual Health Insurance Premiums
Net Self-Employment Income
Federal Tax Rate — 22%
Annual Premium Deducted from Income—
Federal Tax Saved—
SE Tax Reduction (reduces SE income base)—
Total Annual Tax Savings—
True After-Tax Cost of Your Insurance—
💡 The HSA Strategy for Freelancers
Pair a High-Deductible Health Plan (HDHP) with an HSA for the most tax-efficient health strategy available. You get: (1) lower premiums, (2) 100% premium deduction, (3) triple tax-advantaged HSA contributions (pre-tax in, tax-free growth, tax-free for medical). In 2025, contribute $4,300 (self) or $8,550 (family) to your HSA. Invest it in index funds and let it compound — use it to pay future medical expenses tax-free, or withdraw for any purpose after age 65.
Freelance Rate Calculator — What Should You Charge?
Most freelancers dramatically underprice their services. This calculator starts from your desired take-home income and works backward to your minimum viable hourly and project rate — factoring in taxes, expenses, and non-billable time.
Desired Annual Take-Home Income
Annual Business Expenses
Health Insurance Annual Cost
Retirement Savings Goal (annual)
Billable Hours/Week — 30 hrs
Vacation Weeks/Year — 4 weeks
Required Gross Revenue—
Annual Billable Hours—
Minimum Hourly Rate—
Half-Day Rate (4 hrs)—
Full-Day Rate (8 hrs)—
Weekly Project Rate—
Monthly Retainer Rate—
💡 The Freelance Pricing Mindset Shift
You are not competing with employees. A $100/hr freelancer costs a business less than a $50K employee — no payroll taxes, no benefits, no office space, no management overhead. The business pays roughly 1.3–1.5× salary for a full-time employee. Your rate should reflect your value, not your discomfort. Most freelancers are undercharging by 30–50%.
S-Corp vs LLC/Sole Proprietor Tax Calculator
At a certain income level, electing S-Corp status can save you $5,000–$20,000+ per year in self-employment taxes. This calculator shows your exact break-even point and annual savings.
Annual Self-Employment Income
Reasonable Salary (for S-Corp)
State Income Tax Rate — 5%
Estimated Annual S-Corp Admin Cost
As LLC/Sole Prop: Total SE Tax—
As LLC/Sole Prop: Total Tax Bill—
As S-Corp: Payroll Tax on Salary Only—
As S-Corp: Total Tax Bill—
Annual Tax Savings from S-Corp—
Break-Even Income Level—
Verdict—
⚠️ Critical: Set a Reasonable Salary
The IRS requires S-Corp owners to pay themselves a "reasonable salary" — market rate for the work they perform. Setting an artificially low salary to maximize distributions is a red audit flag. The IRS has won numerous cases against S-Corp owners paying themselves $10,000/year while taking $200,000 in distributions. Work with a CPA to set an appropriate salary before electing S-Corp status.
Freelancer Tax Deductions Checklist
These are the most commonly overlooked deductions for self-employed people. Every dollar of legitimate business expense reduces both your income tax AND your self-employment tax.
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Home Office Deduction
If you use part of your home regularly and exclusively for business, you can deduct that portion of rent/mortgage, utilities, and insurance. Method 1 — Simplified: $5/sq ft (max 300 sq ft = $1,500). Method 2 — Actual expense: proportional share of all home costs. Calculate both and use whichever is larger.
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Technology & Subscriptions
Business portion of: phone, internet, laptop, monitor, software subscriptions, cloud storage, project management tools, accounting software, design tools, video conferencing. Keep records of business use percentage. A phone used 70% for business = 70% deductible. This category adds up quickly.
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Professional Development
Online courses, books, conferences, workshops, certifications — all deductible when related to your current business (not a new career). Continuing education that maintains or improves skills required in your work is 100% deductible. Professional memberships and trade association dues also qualify.
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Business Travel
Travel for business purposes: flights, hotels, car rental, 50% of meals. 2025 mileage rate: 70 cents/mile for business driving. Keep a mileage log. Business trips where you add personal days: only deduct the business portions. Travel from home to your primary workplace is commuting — not deductible.
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Health Insurance Premiums
100% of health, dental, and vision insurance premiums for yourself and your family — deducted as an adjustment to income (above the line). This reduces both federal income tax and your effective SE tax base. One of the most valuable deductions available to the self-employed. Requires that you have a net profit.
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Retirement Contributions
Solo 401(k) contributions (up to $70,000 in 2025 combined employee+employer), SEP IRA contributions (up to 25% of net SE income), or SIMPLE IRA contributions — all fully deductible from income. Retirement contributions simultaneously reduce your tax bill this year and build future wealth. Dual benefit, maximum efficiency.
💡 The Quarterly Deduction Review
Don't wait until April to gather deductions. Review your expenses quarterly using accounting software (Wave is free; QuickBooks Self-Employed is $15/month). Missed deductions mean overpaid taxes you can't recover. Set a recurring calendar event: last day of each quarter, review and categorize all expenses. This one habit is worth thousands per year to most freelancers.