Freelance Take-Home Pay Calculator 2026

Q: How much is self-employment tax in 2026?

15.3%: 12.4% Social Security + 2.9% Medicare, applied to 92.35% of net earnings. The Social Security portion applies only to the first $184,500 of net earnings in 2026. Half of the SE tax is deductible.

Q: What is the standard deduction for 2026?

$16,100 for single filers, $32,200 for married filing jointly, $24,150 for head of household.

Q: Do I need to pay quarterly estimated taxes?

Yes, if you expect to owe $1,000 or more. Deadlines are roughly April 15, June 15, September 15, and January 15.

Q: How much state income tax do freelancers pay in California in 2026?

California has 10 brackets from 1% to 13.3% (top rate above $1M), with a $5,706 standard deduction for single filers (FTB 540-ES 2026). At $100K net income the state tax is about $5,208. Local taxes are excluded from this estimate.

See what you actually keep as a US freelancer: self-employment tax, federal income tax, and take-home pay.

Net self-employment income (annual, $)

Net profit from Schedule C after business expenses.

State of residence

State income tax is estimated from 2026 brackets. Local/city taxes (NYC, Ohio municipalities) are not included.

How much is self-employment tax in 2026?

The self-employment tax rate is 15.3%: 12.4% for Social Security plus 2.9% for Medicare. It applies to 92.35% of your net earnings (Schedule SE). The Social Security portion only applies to the first $184,500 of net earnings in 2026; Medicare applies to all of it. You can deduct half of your SE tax when calculating your adjusted gross income.

What is the standard deduction for 2026?

For tax year 2026 the standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household. Most freelancers take the standard deduction rather than itemizing.

Do I need to pay quarterly estimated taxes?

Yes — if you expect to owe $1,000 or more in tax, the IRS requires quarterly estimated payments (Form 1040-ES). Deadlines are roughly April 15, June 15, September 15, and January 15. Underpaying can trigger penalties, so set aside 25–30% of each invoice.

What is the $400 threshold?

You owe self-employment tax only if your net earnings from self-employment are $400 or more in a year. Below that, no SE tax is due — but you still report the income on Schedule C.

Should I form an LLC or S-Corp?

A single-member LLC is taxed like a sole proprietorship by default — no tax savings on SE tax. An S-Corp election can reduce SE tax once your income is roughly $75,000–80,000, because you pay yourself a "reasonable salary" and take the rest as distributions. The extra filing costs and payroll admin usually only pay off above that range.

Which states have no income tax for freelancers in 2026?

Nine states levy no individual income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington (on wage income) and Wyoming. Washington taxes capital gains only. At $100K net income the difference is large: a freelancer in Texas keeps about $74,255, while the same income in California nets about $69,031 after state tax — a $5,200 gap that grows with income.

How much state income tax do freelancers pay in California in 2026?

California has 10 brackets from 1% to 13.3% (the top rate applies above $1M) and a $5,540 standard deduction for single filers. At $100K net income the state tax is about $5,223; at $150K it is roughly $9,000. New York is close behind with 9 brackets up to 10.9% and an $8,000 standard deduction. Local taxes like NYC's 3.1-3.9% add on top and are not included in this estimate.

Do I pay state income tax on top of self-employment tax?

Yes. Self-employment tax (15.3%) is federal, and 42 states also tax your income. The state tax is calculated on your income after the federal standard deduction and the deductible half of SE tax, so the total effective rate ranges from 15.3% in no-tax states to over 30% in California and Oregon. This calculator shows the full picture: SE tax + federal + state.

Disclaimer

Indicative estimate based on the rules in force on the verification date. This is not tax advice: always confirm with the tax authority, social security office or your accountant, because your own case may involve allowances, deductions or deadlines.

Data verified on: 21.10.2026

How to BECOME

Register with the social security authority for your country and apply for the reduced starter rate if you qualify. The contribution base can be changed 6 times a year.

How to become self-employed

How to become self-employed: step by step

Six steps with the real deadlines and the official links. Order matters: the registration date is what opens the window for the reduced rate and the VAT threshold.

Two questions decide your structure before you invoice anyone. First, IR35: if your client ends the contract and pays a substitute worker, the client checks your status. If your own limited company is between you and the client, that client is outside IR35 — but clients do check. Second, VAT: you must register if your turnover exceeds £90,000 in any 12 months (from 1 April 2025) — the registration threshold is not a tax allowance.
gov.uk — VAT registration threshold →
A sole trader is the simplest and cheapest to set up, and usually best below ~£50-60k profit. A limited company (Ltd) costs ~£50-500 to incorporate plus £0-820/year in accounts and confirmation statements, but moves employment tax off distributions above ~£80k profit. An umbrella company is just a payroll intermediary for contractors inside IR35 — it is not your own company.
gov.uk — set up a limited company →
You must register for Self Assessment by 5 October in the second year after the tax year you started trading (31 October for a limited company). You get a Unique Taxpayer Reference (UTR) within 2 weeks. You then file a Self Assessment tax return each year, normally by 31 January, with a balancing payment by 31 July.
gov.uk — register for Self Assessment →
As a sole trader you pay Class 4 NI at 6% on profits between £12,570 and £50,270, and 2% above — no cap. Class 2 is voluntary at £3.45/week if your profits are below £7,105 (this preserves your state pension and maternity rights). If you are an employee as well, your Class 4 is reduced by your Class 1 contributions.
gov.uk — self-employed National Insurance →
For sole traders you can use the simplified mileage allowance of 55p per mile for the first 10,000 business miles and 25p after (from 6 April 2026) instead of itemising fuel, insurance, repairs, tax and depreciation. You cannot mix methods for the same vehicle in the same year. For a company car, use the Advisory Fuel Rates to work out the benefit charge instead.
gov.uk — allowable business expenses →
HMRC expects tax to be paid in instalments via the Making Tax Digital quarterly updates (payments on account), and charges interest and penalties if you pay late. Separately, a 1099 or SEIS-free freelance contract pays nothing between contracts: budget 20-30% of your rate for unpaid time, pension, holiday and sick pay that employees get for free.
gov.uk — pay your Self Assessment tax →

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Freelance Take-Home Pay Calculator 2026

How much is self-employment tax in 2026?

What is the standard deduction for 2026?

Do I need to pay quarterly estimated taxes?

What is the $400 threshold?

Should I form an LLC or S-Corp?

Which states have no income tax for freelancers in 2026?

How much state income tax do freelancers pay in California in 2026?

Do I pay state income tax on top of self-employment tax?

Disclaimer

How to BECOME

How to become self-employed: step by step

11. Check your VAT and IR35 status first−

22. Decide: sole trader, limited company or umbrella+

33. Register with HMRC for Self Assessment+

44. Get National Insurance right+

55. Claim your allowable expenses properly+

66. Put money aside for tax and for the gaps+

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