The biggest shock for new freelancers isn't the workload—it's the tax bill. Unlike a W-2 job, no one withholds taxes for you. You are the boss, and the tax collector.
Estimate Your Quarterly Payments
Don't guess. Use our calculator to see what you owe.
What is Self-Employment Tax?
In a regular job, you pay 7.65% for Social Security and Medicare, and your employer pays the other 7.65%. As a freelancer, you are both the employer and employee, so you pay the full 15.3%.
This is on top of your regular federal and state income tax.
When are Taxes Due?
The IRS requires "Pay As You Go" taxes. You must pay estimated taxes four times a year:
- Q1 (Jan-Mar): Due April 15
- Q2 (Apr-May): Due June 15
- Q3 (Jun-Aug): Due September 15
- Q4 (Sep-Dec): Due January 15 (of next year)
How to Lower Your Bill
The beauty of freelancing is deductions. You can deduct "ordinary and necessary" business expenses to lower your taxable income:
- Home Office: A portion of your rent/mortgage and utilities.
- Equipment: Laptops, cameras, software subscriptions.
- Marketing: Website hosting, ads, business cards.
Tip: Always keep receipts and separate your business bank account from personal.