Updated with 2025 Tax Rates

Freelance Hourly Rate Calculator

Calculate your ideal rate with accurate state + federal tax estimates. Compare against market benchmarks.

Currency

What type of freelancer are you?

Select your profession to see relevant market rates

πŸ’° Income & Working Hours

$
10 hrs30 hrs (typical)50 hrs
4 weeks

πŸ“‹ Monthly Business Expenses

$ /month

Common expenses:

Health insurance$400-600
Software$50-200

πŸ›οΈ Tax Estimation

Tax Breakdown

Self-Employment Tax (15.3%) $0
Federal Income Tax $0
State Tax (Alabama) $0

Rate varies

Total Estimated Taxes $0
Effective Rate 0%

Disclaimer: These are estimates only. Consult a tax professional.

2025 Freelance Rate Benchmarks

Compare your rate against market data

πŸ’»

Web Developer

Junior$20-45/hr
Mid$45-75/hr
Senior$75-150/hr
🎨

Designer

Entry$25-35/hr
Mid$35-60/hr
Senior$60-100/hr
✍️

Writer

Beginner$15-30/hr
Mid$30-50/hr
Expert$50-100/hr
🎯

Consultant

General$50-100/hr
Management$100-200/hr
Strategy$150-300/hr

Understanding Freelance Taxes

15.3%

Self-Employment Tax

Social Security + Medicare

10-37%

Federal Income Tax

Progressive brackets

0-13.3%

State Income Tax

Varies by state

States With No Income Tax

Alaska Florida Nevada New Hampshire South Dakota Tennessee Texas Washington Wyoming

πŸ› οΈ Essential Freelance Business Tools

Recommended tools to run your freelance business professionally.

πŸ“„

Invoicing

⏱️

Time Tracking

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Contracts

πŸ’°

Payments

πŸ’ͺ Negotiation Tactics for Freelancers

Knowing your rate is just the first step. Here's how to confidently negotiate with clients and get paid what you're worth.

🎯

Know Your Bottom Line

Before any negotiation, determine your Minimum Acceptable Rate (MAR). This is the lowest you'll go β€” walking away is better than working below this number.

Pro tip: Your MAR should cover all expenses + taxes + profit margin.
βš“

Anchor High

The first number in a negotiation sets the anchor. Start 15-30% higher than your target rate β€” this gives you room to "compromise" while still hitting your goal.

Example: If you want $100/hr, open with $120-130/hr.
πŸ”„

Flip the Question

When clients ask your rate first, respond with: "What's your budget for this project?" This reveals their expectations and prevents you from underselling.

Script: "I'd love to understand the scope better. What budget range are you working with?"
πŸ“Š

Focus on Value, Not Time

Frame your pricing around the value you deliver, not hours worked. A logo that increases sales by 20% is worth more than "20 hours of design work."

Ask: "What would success look like for this project?"
🚫

Be Willing to Walk Away

The most powerful negotiation tool is the ability to say no. Clients can sense desperation. Confidence comes from having options and knowing your worth.

Remember: A bad client at low rates costs more than no client at all.
πŸ“ˆ

Raise Rates Strategically

After delivering excellent work, ask for a rate increase. The end of a successful project is the perfect time β€” you've just proven your value.

Timing: New year, project completion, or after major milestones.

πŸ“Š Freelance Market Rate Data Sources

We aggregate data from these trusted industry sources. Bookmark them for your own research.

❓ Frequently Asked Questions

How do I calculate my freelance hourly rate?

To calculate your freelance hourly rate: (1) Determine your desired annual take-home income, (2) Add annual business expenses, (3) Add estimated taxes (typically 25-40% for US freelancers), (4) Divide by your total billable hours per year. Our calculator does this automatically with accurate state-specific tax estimates.

What is self-employment tax?

Self-employment tax is 15.3% of your net self-employment income, covering Social Security (12.4%) and Medicare (2.9%). Unlike employees who split this with employers, freelancers pay the full amount. However, you can deduct half of SE tax from your adjusted gross income.

Which US states have no income tax?

Nine US states have no state income tax: Alaska, Florida, Nevada, New Hampshire (on earned income), South Dakota, Tennessee (on earned income), Texas, Washington, and Wyoming. Freelancers in these states only pay federal taxes and self-employment tax.

How many hours should I bill per week?

Most freelancers can realistically bill 25-35 hours per week. The remaining time goes to non-billable work: marketing, admin, invoicing, client communication, and business development. New freelancers often overestimate billable hoursβ€”start conservative and adjust.

Should I charge hourly or project-based rates?

Both have advantages. Hourly rates provide predictable income and protect against scope creep. Project rates can be more profitable if you work efficiently and let you focus on value delivered rather than time spent. Many freelancers use hourly for ongoing work and project rates for defined deliverables.

How often should I raise my rates?

Review your rates annually at minimum. Raise them when: (1) You've gained significant new skills or experience, (2) Demand for your services increases, (3) Your costs increase (inflation, software, insurance), (4) You're consistently fully bookedβ€”that's a signal you're underpriced.

πŸ›οΈ US Freelance Tax Resources

Essential resources for managing your freelance tax obligations.

Ready to Charge What You're Worth?

Bookmark this calculator and come back whenever you're negotiating a new project or raising your rates. Share it with fellow freelancers!

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