A single freelancer with no other income pays about 19.5% of profit in federal tax at $50,000, 22.4% at $100,000, and 26.7% at $200,000in 2026. That total is self-employment tax plus income tax. The tables below show where the money goes at eight income levels, for single and joint filers.
Two federal taxes on one profit
Self-employment tax is Social Security and Medicare: 15.3% on 92.35% of your profit. It starts on the first dollar once net earnings reach the Schedule SE floor, with no standard deduction. Income tax comes second and is figured on what is left after three things come off: half of the SE tax, the standard deduction ($16,100 single, $32,200 joint), and the qualified business income (QBI) deduction of up to 20%.
That order explains why lower-income freelancers are often surprised: at modest profit, SE tax is most of the bill and income tax is small or zero.
Single filer: tax by income level
Single, no W-2 wages, standard deduction, no credits, 2026 figures.
| Net profit | SE tax | Income tax | Total federal | Effective rate |
|---|---|---|---|---|
| $25,000 | $3,532 | $571 | $4,103 | 16.4% |
| $40,000 | $5,652 | $1,775 | $7,427 | 18.6% |
| $50,000 | $7,065 | $2,667 | $9,732 | 19.5% |
| $75,000 | $10,597 | $4,898 | $15,495 | 20.7% |
| $100,000 | $14,130 | $8,235 | $22,365 | 22.4% |
| $150,000 | $21,194 | $16,413 | $37,608 | 25.1% |
| $200,000 | $28,234 | $25,196 | $53,431 | 26.7% |
| $300,000 | $31,606 | $62,725* | $94,330 | 31.4% |
* Taxable income is above the $201,750 QBI threshold. The deduction there depends on the kind of business and the wages and property it has, so it is left out and income tax may be lower than shown. SE tax includes Additional Medicare Tax where it applies.
Married filing jointly
Same profit levels, one self-employed spouse, no other income.
| Net profit | SE tax | Income tax | Total federal | Effective rate |
|---|---|---|---|---|
| $25,000 | $3,532 | $0 | $3,532 | 14.1% |
| $40,000 | $5,652 | $398 | $6,050 | 15.1% |
| $50,000 | $7,065 | $1,141 | $8,206 | 16.4% |
| $75,000 | $10,597 | $3,104 | $13,701 | 18.3% |
| $100,000 | $14,130 | $5,335 | $19,464 | 19.5% |
| $150,000 | $21,194 | $9,795 | $30,990 | 20.7% |
| $200,000 | $28,234 | $16,472 | $44,706 | 22.4% |
| $300,000 | $31,156 | $33,837 | $64,992 | 21.7% |
The larger standard deduction and wider brackets on a joint return keep income tax well below the single figures at every level. The rate even dips from 22.4% at $200,000 to 21.7% at $300,000: net earnings pass the $184,500 Social Security wage base, so the extra profit carries only the Medicare part of SE tax.
So is it 30%?
For a single filer, the combined federal rate first reaches 30% at $300,000 of profit in these tables, and that row excludes the QBI deduction. Every lower row lands between 16.4% and 26.7%. A flat 30% set-aside overshoots the federal bill for most freelancers, though state income tax can close part of the gap.
The 30% figure usually comes from adding the 15.3% SE rate to an income tax bracket. Brackets apply only to the top slice of taxable income, so the sum overstates the real rate. Where the 30% myth comes from walks through that in detail.
What the next $1,000 of profit costs
The effective rate is an average. For planning a new contract, the extra tax on added profit matters more. These figures come from running each level again with $1,000 more profit (single):
| Current profit | Extra federal tax on the next $1,000 |
|---|---|
| $25,000 | $216 |
| $40,000 | $231 |
| $50,000 | $231 |
| $75,000 | $231 |
| $100,000 | $305 |
| $150,000 | $305 |
| $200,000 | $216 |
| $300,000 | $380* |
At $75,000, keeping $770 of each extra $1,000 is the realistic figure, not the $793 the average rate suggests. The number moves in steps as profit crosses brackets and the Social Security wage base.
What moves your number
- A W-2 job as well. Wages use up the $184,500 Social Security wage base first, which can cut SE tax, but they also push profit into higher income tax brackets.
- Health insurance and retirement contributions. Both lower income tax (not SE tax). The deductions list covers the rules.
- Business expenses. Every deductible expense lowers profit, which lowers both taxes at once.
- State tax. Not in these tables. Most states tax the same profit again.
- Credits. The child tax credit and other credits reduce income tax directly, after it is figured.
Because nothing is withheld, the total is usually paid in four installments. The quarterly estimated tax calculator turns an annual figure into payments and shows the safe-harbor options, and the step-by-step SE tax guide shows how each line of Schedule SE is figured.