What is self-employment tax?
Self-employment tax is the Social Security and Medicare tax that self-employed individuals must pay. As a freelancer, you're responsible for both the employee and employer portions of these taxes, totaling approximately 15.3% of your net income.
Why is my take-home pay different from my gross income?
Your take-home pay is lower than your gross income because of taxes. This includes federal income tax, self-employment tax (Social Security and Medicare), and state income tax (if applicable). These are automatically deducted from your earnings.
What is the standard deduction?
The standard deduction is a fixed amount that reduces your taxable income. For 2025, the standard deduction for single filers is $14,600. This means you only pay taxes on income above this amount.
How do federal tax brackets work?
The U.S. uses a progressive tax system with multiple tax brackets. You don't pay the same rate on all your income. Instead, different portions of your income are taxed at different rates. For example, your first $11,000 might be taxed at 10%, the next $44,725 at 12%, and so on.
Do all states have income tax?
No. Nine states have no state income tax: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and New Hampshire (no tax on wages). If you live in one of these states, you won't owe state income tax on your freelance income.
What's the difference between 2025 and 2026 tax rules?
Tax brackets, standard deductions, and other tax parameters are adjusted annually for inflation. The 2026 projections in this calculator are estimates based on current trends. Actual 2026 tax rates will be announced by the IRS in late 2025.
Is this calculator accurate?
This calculator provides rough estimates based on standard tax rules. It does not account for deductions, credits, business expenses, or other factors that may affect your actual tax liability. For accurate tax planning, consult a tax professional.
Can I use this for quarterly estimated taxes?
Yes, you can use this calculator to estimate your annual tax liability and divide it by four to determine your quarterly estimated tax payments. However, consult a tax professional to ensure you're making the correct quarterly payments.
What if I have multiple income sources?
If you have multiple income sources (freelance work, W-2 employment, investments, etc.), you should combine all income when calculating your taxes. This calculator is designed for freelance income only. For complex situations, consult a tax professional.
Is my data private?
Yes. This app does not collect, store, or transmit any of your personal or financial data. All calculations are performed locally on your device. Your information is never sent to our servers.
How accurate are 2026 projections?
The 2026 tax rates have been announced by the IRS. This calculator uses the official 2026 tax brackets, standard deductions, and other parameters. However, this app provides estimates only and does not account for all deductions, credits, or personal circumstances. For accurate tax planning and filing, consult a tax professional.