Free · No signup · All 50 states
What to charge to keep what you actually want.
Tell it the take-home you want. It works backward through self-employment tax, federal and state income tax, expenses, and health insurance, to the rate you really need, and shows you exactly where every dollar goes.
To take home a given amount as a self-employed person, your rate has to cover self-employment tax (15.3%), federal and state income tax, business expenses, and health insurance, which usually means charging 40 to 70% more than your target income divided by 2,080 hours. This free calculator does that math across all 50 states.
To actually keep $70,000 a year, charge
$88/hr
about $708 for an 8-hour day · $106,175 billed / year
Where every dollar you bill goes
The part people forget. As an employee, your boss pays half your Social Security and Medicare. Self-employed, you pay all of it: a 15.3% self-employment tax on top of regular income tax. That alone is $13,307 here. After self-employment tax, federal, and state, you are keeping roughly 66 cents of every dollar you bill before expenses, which is why your rate has to be higher than it feels.
This is your floor, not your price.
$88/hr is the minimum that keeps you whole after taxes. The market usually pays more. See what your trade actually charges, then price above this floor with confidence.
Estimates for planning, not tax advice. Self-employment tax is exact; federal brackets and state rates are 2026 estimates and your real tax depends on deductions, credits, and your full situation. Effective income-tax rate here is about 26%. Talk to a tax professional before you file.
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Frequently asked questions
How much should I charge to take home a certain amount after taxes?+
Start from the take-home you want, then add back self-employment tax (15.3%), federal and state income tax, business expenses, and health insurance, and divide by your realistic billable hours. The self-employed keep far less of each dollar than employees, so the rate you need is usually 40 to 70% higher than dividing your target income by 2,080 hours. This calculator does that math for you.
What is self-employment tax and why does it matter for my rate?+
Self-employment tax is the 15.3% you pay to cover Social Security and Medicare. As an employee, your employer covers half of it. When you work for yourself, you pay all of it, on top of regular income tax. It is the single biggest reason freelancers undercharge: they forget it exists until tax time. Any rate you set has to cover it.
Does this account for my state's income tax?+
Yes. Pick your state and the calculator applies an estimated state income tax rate, with zero for the nine states that have no income tax. State rates are estimates you can edit, so if you know your exact effective rate you can enter it.
Is this tax advice?+
No. It is a planning estimate. Self-employment tax is calculated exactly, but federal brackets and state rates are estimates, and your real taxes depend on deductions, credits, and your full situation. Use it to set a defensible floor for your rate, then talk to a tax professional before you file.
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