Freelance Taxes: Everything You Need to Know in 2026
Self-employment tax, quarterly payments, deductions — the complete freelancer tax guide.
As a freelancer, you pay both the employer AND employee share of Social Security and Medicare: 15.3% on top of your income tax rate. On $80,000 of freelance income in the 22% bracket, you owe approximately $29,640 in total taxes (22% income + 15.3% SE tax, minus half of SE tax deduction). That is an effective rate of 37%.
Quarterly Estimated Payments
Due dates: April 15, June 15, September 15, January 15. Penalty for underpayment: approximately 8% annualized in 2026. To avoid penalties, pay at least 100% of last year total tax liability or 90% of this year expected liability, whichever is smaller.
The Deductions That Matter
Home office: $5/sq ft up to 300 sq ft = $1,500 simplified deduction. Health insurance premiums: 100% deductible. Retirement contributions (SEP-IRA): up to 25% of net self-employment income. Business equipment, software, and internet: proportional business use percentage. Vehicle mileage: $0.67/mile for business driving.