US freelancers and independent contractors pay federal income tax on a progressive scale plus self-employment tax (Social Security + Medicare), and most states add their own income tax on top.
Estimate only - income tax bands only, does not include self-employment/social contributions, deductions, or credits. See the breakdown below for those.
| Income band | Rate |
|---|---|
| Up to $11,925 | 10% |
| $11,925–$48,475 | 12% |
| $48,475–$103,350 | 22% |
| $103,350–$197,300 | 24% |
| $197,300–$250,525 | 32% |
| $250,525–$626,350 | 35% |
| Above $626,350 | 37% |
Self-employment tax is 15.3% (12.4% Social Security up to the annual wage base + 2.9% Medicare, uncapped) on top of federal income tax, calculated on 92.35% of net self-employment earnings.
No federal VAT/GST. Sales tax is state-level and generally does not apply to freelance services (varies by state).
April 15 (federal Form 1040 + Schedule SE). Quarterly estimated tax payments due April 15, June 15, September 15, and January 15.
Source: IRS 2025 tax brackets (Rev. Proc. 2024-40) and IRS Self-Employment Tax guidance.. Tax rules change - verify current-year specifics with a local tax advisor before filing.