The United States is generally considered the top country in freelancing. The number of such self-employed persons is increasing with the rising demand of remote working opportunities worldwide. However, taxation does not even spare freelancers. So, how much do freelancers pay in taxes in the USA?
The self-employment tax in the US pays for Social Security and Medicare. Therefore, it is vital to know how much you will have to pay as a freelancer.
Self-Employment Tax of Freelancers
Freelancers have to pay FICA taxes on 92.35% of their net income. This includes both the employer and employee halves of the tax, which add up to 15.3%.
The Social Security part (12.4%) only applies to the first $176,100 of net earnings in 2025. The Medicare part (2.9%) applies to all net earnings.
Freelancers who make more than $200,000 (single filers) or $250,000 (married filing jointly) additionally have to pay the 0.9% Additional Medicare tax.
Read: What is a VAT number in the US?
The Progressive Brackets for Federal Income Tax
Freelancers have to pay both self-employment tax and federal income tax. Depending on how much money you make and how you file your taxes, the brackets for 2025 will be between 10% and 37%.
Freelancers may lower their taxable income by using deductions including the:
- Standard deduction
- Business costs
- Healthcare premiums
- 20% Qualified Business Income (QBI) deduction (under certain conditions)
Tax Deductions for Businesses to Decrease Taxes
Freelancers may deduct normal and essential business expenses, such as:
- Travel
- Internet
- Home office
- Professional tools’ subscriptions
This decreases both their net profits and their income tax bill.
L&Y Tax Advisor helps you find and record these deductions accurately so that you can save the most money and stay in compliance.
Estimated Quarterly Payments
Employers do not take off taxes from freelancers’ paychecks. So, they have to submit quarterly estimated tax payments using Form 1040-ES. These payments are usually due on the following dates every year:
- January 15
- April 15
- June 15
- September 15
Read: What is an industry accountant?
How L&Y Tax Advisors Can Help US Freelancers?
L&Y Tax Advisors, LLC offers full-service tax preparation, planning, and advice in person in Texas and online via virtual CPA consultations around the country. We are experts in:
- Filing Schedule C forms
- Quarterly estimated tax strategies
- Benefitting from deductions to lower both self-employment and income taxes
Our CPAs and enrolled agents come up with plans that will keep your effective tax burden as low as the law allows.
The Bottom Line
Here’s a summary on how much do freelancers pay in taxes in the USA:
Self-Employment Tax: 15.3% on 92.35% of net income (Social Security will be limited at $176,100 in 2025. However, Medicare and a potential 0.9% surcharge will not be capped)
Federal Income Tax: 10% to 37% of taxable income.
You may lower both kinds of taxes a lot by deducting company costs.
Freelancers can reliably manage their taxes and get the best financial results with the help of wise planning and good record-keeping. Contact us for specialized assistance and the right tax solutions.
Also, read: Can a CPA be a registered agent?
