Understanding the Freelancer Tax Hub
Unlike traditional employees who have taxes withheld from every paycheck, freelancers and gig workers are responsible for paying their own taxes. This usually happens in two forms:
- Self-Employment Tax: A flat 15.3% tax that covers Social Security and Medicare. You pay both the employer and employee portion.
- Federal Income Tax: A progressive tax based on your total income for the year after all business expenses and the standard deduction.
Note: This calculator uses simplified 2026 tax brackets and standard deductions for estimation purposes. It does not account for specific credits or complex tax situations.