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Freelance Rate Calculator

Find the minimum hourly rate that leaves you the take-home pay you want, after self-employment tax, income tax and business costs.

Updated · Tax year 2026 · By Volkan Eren · Sources & method

What you keep after all taxes and business costs.

Hours clients pay for. Leave out admin time.

Vacation, holidays, sick days and gaps between clients.

Software, equipment, internet, insurance, coworking.

SEP-IRA or solo 401(k).

More options

Sets your contribution limit. A few states treat the two plans differently.

Consulting, law, accounting, health, financial services, performing arts or athletics. Only matters above $201,750 of taxable income ($403,500 married).

Your minimum hourly rate

$129/hr

To take home $100,000 in a state with no income tax, bill $154,197 a year across 1,200 billable hours. Set aside 22.3% of every payment for taxes.

Day rate (8 h)
$1,028
Per week
$3,212
Per month
$12,850
Total tax
$34,397
Where each year’s billings go
Self-employment tax: $20,685 (13.4%)Federal income tax: $13,712 (8.9%)Business expenses: $7,800 (5.1%)Health + retirement: $12,000 (7.8%)Take-home pay: $100,000 (64.9%)
  • Self-employment tax$20,685 · 13.4%
  • Federal income tax$13,712 · 8.9%
  • State income tax$0 · 0.0%
  • Business expenses$7,800 · 5.1%
  • Health + retirement$12,000 · 7.8%
  • Take-home pay$100,000 · 64.9%

Estimate for tax year 2026 using IRS and state figures. Not tax advice. See how we calculate.

What hourly rate should a freelancer charge in 2026?

To take home $100,000 a year as a single filer, before any state income tax, charge at least $129 an hour. That covers $20,685 of self-employment tax, $13,712 of federal income tax and $7,800 of expenses across 1,200 billable hours (2026 IRS figures).

State income tax raises the floor in most states. Select your state in the calculator above, or open your state's page for its brackets and a worked example.

Minimum hourly rate by take-home pay and state

Single filer, 30 billable hours a week, 4 weeks off and $500 a month of business expenses. Health insurance and retirement savings are not included here.

Required hourly rate for each take-home target by state, tax year 2026
State$50,000$75,000$100,000$150,000$200,000
Texas$48$71$96$147$200
Florida$48$71$96$147$200
California$50$76$104$160$234
New York$51$76$103$157$230
Illinois$51$76$103$155$223
Pennsylvania$51$76$102$154$221

How the calculator works

Taxes depend on how much you earn, and how much you need to earn depends on taxes. So the calculator works backwards: it searches for the yearly billings that leave exactly your target after every cost, then divides by your billable hours.

  1. Billable hours = (52 − weeks off) × billable hours per week.
  2. Self-employment tax = 12.4% Social Security on up to $184,500 plus 2.9% Medicare, both on 92.35% of profit, plus 0.9% Additional Medicare Tax above $200,000 ($250,000 married).
  3. Federal income tax on profit minus half of self-employment tax, health insurance and retirement contributions, minus the $16,100 standard deduction ($32,200 married) and the 20% QBI deduction.
  4. State income tax using your state’s 2026 brackets, deductions and rules for self-employment income.
  5. Hourly rate = required yearly billings ÷ billable hours.

Every rate, threshold and source is listed on the methodology page.

A salary divided by 2,080 is the wrong benchmark

A $100,000 salary is not the same as billing $48 an hour. An employer pays half of Social Security and Medicare (7.65% of pay), funds health insurance and retirement matches, and pays you for holidays, vacation and every meeting. As a freelancer, you cover all of that from what you bill, and only the hours clients pay for count. Use the 1099 vs W-2 calculator to compare a specific job offer with contracting.

Frequently asked questions

How do I calculate my freelance hourly rate?

Add your target take-home pay, yearly business expenses, health insurance and retirement savings, then add the taxes that income will trigger: 15.3% self-employment tax on 92.35% of profit (Social Security stops at $184,500 for 2026), plus federal and state income tax. Divide the total by the hours clients will actually pay for in a year.

Why is my freelance rate so much higher than my old salary divided by 2,080?

An employer pays half of your Social Security and Medicare tax, your health insurance, retirement match and paid time off, and every hour you are on the clock is paid. As a freelancer you pay both halves of the 15.3% payroll tax, buy your own benefits, and usually bill only 50–75% of the hours you work.

How many billable hours should I plan for?

Plan for fewer billable hours than you work: sales, admin, email and invoicing take time no client pays for. The calculator defaults to 25 billable hours a week and 4 weeks off, which works out to 1,200 billable hours a year. Change both to match your schedule.

How much of each payment should I set aside for taxes?

It depends on your income and state. With the default inputs (federal tax only, before any state income tax), about 22.3% of everything you bill goes to taxes. The calculator shows your own percentage under the result.

Does the calculator include the QBI deduction?

Yes. It applies the 20% qualified business income deduction, made permanent by the One Big Beautiful Bill Act, including the 2026 income thresholds ($201,750 single, $403,500 married filing jointly) and the phase-out for specified service businesses.

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<p style="font:13px sans-serif">Calculator by <a href="https://hourfloor.com/">HourFloor</a></p>

Estimates for educational and planning purposes only. HourFloor does not provide tax, legal or financial advice. Verify your numbers with a qualified tax professional.

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