Freelancer Tax Guide 2025: What You Need to Know

Freelancer Tax Basics

As a freelancer, you are a sole proprietor by default. You pay income tax on your profits plus the full 15.3% self-employment tax. Quarterly estimated tax payments are required if you expect to owe more than $1,000.

Common Deductions

Home office: Deduct a portion of rent/mortgage, utilities, and internet based on office square footage.
Equipment: Computers, software, and professional tools.
Health insurance: Self-employed health insurance deduction.
Retirement: SEP-IRA contributions up to 25% of net profit.

Estimated Quarterly Payments

Due dates: April 15, June 15, September 15, January 15. Underpayment penalties apply if you do not pay enough throughout the year.

See tax estimates for freelance consulting across all states.