How this freelancer quarterly tax calculator works
Revenue minus ordinary business expenses produces estimated net profit. The model applies the IRS Schedule SE 92.35% factor, calculates Social Security and Medicare components, deducts half of self-employment tax when estimating AGI, then applies 2026 ordinary federal brackets and the standard deduction.
The formula
SE net earnings = (revenue − expenses) × 92.35%SE tax = capped Social Security component + Medicare componentquarterly target = (safe-harbor target − withholding) ÷ 4- Net profit is revenue minus entered business expenses.
- Safe harbor compares 90% of estimated current tax with the applicable prior-year target.
- Quarterly payment assumes four equal installments.
Understanding your results
The result is a planning estimate, not a prepared tax return. It excludes state and local tax, the qualified business income deduction, itemized deductions, capital gains, most credits, retirement contributions, health-insurance deductions, and many special rules. Uneven income may require the annualized-income installment method.
Safe harbor rules
IRS Publication 505 generally uses the smaller of 90% of expected current-year tax or the required prior-year amount. The prior-year percentage is usually 100%, but commonly rises to 110% when prior-year AGI exceeds $150,000, or $75,000 for married filing separately.
Frequently asked questions about freelancer taxes
What is the self-employment tax rate in 2026?
The federal self-employment tax rate is 15.3%: 12.4% for Social Security and 2.9% for Medicare. Schedule SE generally multiplies net profit by 92.35% first. For 2026, the Social Security portion uses a $184,500 combined wage base; Medicare is not subject to that cap.
When do freelancers pay quarterly estimated taxes?
Estimated payments are generally made in four installments, but the periods are not equal calendar quarters. Confirm the current deadlines with the IRS because weekends, holidays, fiscal-year filing, and annualized income can change timing.
Are business expenses deducted before self-employment tax?
Ordinary and necessary business expenses generally reduce Schedule C net profit before Schedule SE is calculated. Classification matters: personal spending is not a business deduction, and some costs must be depreciated or follow special limitations. Keep records and consult a qualified tax professional.