What's Your Real Tax Bite as a Freelancer?
Freelance and 1099 income doesn't have taxes withheld the way a paycheck does, so it's easy to underestimate what you'll actually owe at filing time. This calculator simulates your full-year Schedule C tax picture: it applies an industry-average expense rate to your revenue to estimate net profit, then layers on the 15.3% self-employment tax (Social Security and Medicare) plus federal income tax at your marginal bracket, after the standard deduction and the deductible half of self-employment tax. The result is a single effective tax rate on your total revenue, useful for year-end planning rather than splitting a bill into quarterly payments.
How It's Calculated
| Step | Item | Formula |
|---|---|---|
| 1 | Net Profit | Revenue − (Revenue × Expense Rate) |
| 2 | SE Tax | 15.3% on 92.35% of net profit (up to wage base) |
| 3 | Taxable Income | Net profit − ½ SE tax − standard deduction |
| 4 | Income Tax | Progressive federal brackets on taxable income |
| 5 | Effective Rate | Total tax ÷ total revenue |
Frequently Asked Questions
This shows your full-year picture using an expense rate and an effective tax rate, meant for year-end planning rather than quarterly payment splitting.
It varies by industry — consulting often runs 10-20%, while equipment- or inventory-heavy businesses can run 40%+. Use your actual historical ratio if you have it.
※ Rates and thresholds are estimates based on recent IRS figures and may change. Consult a tax professional for your exact situation.