Freelance Pricing

Freelance Wage Calculator: What Hourly Rate Should You Actually Charge?

Your old W-2 wage is not your freelance rate. As a 1099 contractor you pay the full 15.3% self-employment tax, federal and state income tax, and fund your own benefits, software, and unpaid downtime. The rate below is the floor that survives all of that and still lands your target take-home — a personal number no AI answer box can hand you without your inputs.

Results

AllMoneyCalc provides illustrative estimates only. The calculator models self-employment tax (15.3%), a ~12% blended federal rate, and an estimated state rate (0% in the nine no-income-tax states, ~5% elsewhere). Replace with your real marginal rates for a binding quote. This is not tax advice.

Frequently asked

What hourly rate should I charge as a freelance 1099 worker?

Your old W-2 wage is not your freelance rate. A 1099 contractor pays the full 15.3% self-employment tax plus federal and state income tax, and funds their own benefits and downtime. Use the calculator to back out the hourly rate that still lands your target after-tax take-home.

How is the blended tax rate on my freelance income calculated?

The model applies a 15.3% self-employment tax, a ~12% blended federal rate, and an estimated state rate (0% in the nine no-income-tax states, ~5% elsewhere). Replace the estimates with your real marginal rates for a binding quote.

Do business expenses lower the rate I need to charge?

Yes. Enter your monthly business expenses and the calculator adds them back into the gross before dividing by hours, so your stated hourly rate covers both taxes and your actual costs.

Related tools & guides

Data Sources & Fact-Checking Methodology

✓ Audited for 2026 Tax Year
  • Standard formulas Amortization, compound interest, and retirement projection equations per finance practice.
  • Public reference rates Savings/investment assumptions stated as planning estimates; no live market rates.
  • Internal editorial Calculators reviewed by the AllMoneyCalc editorial team before publication.
🛡️ Editorial Audit & Fact-Checking Standards

All calculations are independently vetted by credentialed practitioners (IRS Enrolled Agent & CFA) against statutory primary sources: 26 U.S. Code § 1(j) (Tax Cuts and Jobs Act rates), IRS Rev. Proc. 2025-32, 29 CFR Part 541 (FLSA labor rules), and CFPB Regulation Z. Models undergo continuous automated verification against synthetic test cases.

Last comprehensive audit: October 2026 · Scheduled re-audit: Monthly · Open Data JSON (CC BY 4.0)
📚 Academic & Media Citation (APA 7th Edition)
AllMoneyCalc Research Board. (2026). Federal Income Tax, Payroll & Personal Finance Calculation Engine (2026 ed.). AllMoneyCalc. https://allmoneycalc.com

Methodology and citations are maintained by the AllMoneyCalc editorial board. Educational tools only; verify specific personal filing situations with a qualified tax professional.

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