If you’ve ever wondered “are freelancers self-employed“, you’re not alone. It’s one of the most common tax questions people ask once they start working for themselves. The short answer? Yes — freelancers are self-employed. But there’s more to it than that.
Being self-employed means you’re not on anyone’s payroll, no taxes are withheld from your income, and you’re responsible for paying your own federal and state taxes. That sounds simple enough — until it’s time to file.
In this guide, we’ll break down what being self-employed actually means for freelancers in 2025, how taxes work, and what steps you should take to stay compliant (and stress-free).
So, Are Freelancers Self-Employed?
Yes — according to the IRS, freelancers, independent contractors, and gig workers are all considered self-employed individuals. You run your own business, even if it’s just you and your laptop.
That means:
- You don’t receive a W-2 from clients.
- You do receive Form 1099-NEC if you earn over $600 from a client.
- You’re responsible for reporting and paying your own taxes.
For more details on how freelance and self-employed taxes differ, see Self-Employed Tax vs Freelancer Tax: The Difference You Need to Know.
What Taxes Do Freelancers Pay in 2025?
If you’re self-employed, you pay two main types of taxes:
1. Federal Income Tax
This depends on your total income after expenses. Your tax rate can range from 10% to 37%.
2. Self-Employment Tax (15.3%)
This covers Social Security (12.4%) and Medicare (2.9%), which traditional employers normally split with employees. Freelancers must pay both portions.
Example:
If you earn $60,000 from freelancing and deduct $10,000 in expenses, you’ll pay self-employment tax on $50,000 × 15.3% = $7,650.
Source :IRS Self-Employment Tax Overview.
Use the Freelance Tax Calculator to estimate your total taxes in seconds.
How Freelancers Report Taxes
Freelancers use a few special IRS forms:
- Form 1040: Main individual tax form.
- Schedule C: Reports business income and expenses.
- Schedule SE: Calculates your self-employment tax.
Source: IRS Schedule C Instructions.
Paying Taxes Quarterly
Unlike traditional employees, freelancers don’t have taxes withheld from their checks. That means you’ll make quarterly estimated tax payments throughout the year.
| Quarter | Period Covered | Payment Due Date |
| Q1 | Jan 1 – Mar 31 | April 15 |
| Q2 | Apr 1 – May 31 | June 15 |
| Q3 | Jun 1 – Aug 31 | September 15 |
| Q4 | Sep 1 – Dec 31 | January 15 (next year) |
Missed a deadline? Don’t panic — see What Happens if I Miss a Quarterly Tax Payment as a Freelancer.
Source: IRS Direct Pay — make secure payments online.
Deductions Freelancers Can Claim
Being self-employed isn’t all bad news — you can claim deductions that lower your taxable income. Here are some of the most common ones in 2025:
- Home Office: A portion of rent, electricity, and internet.
- Equipment: Laptops, monitors, and tools for work.
- Software: Canva, Adobe, Google Workspace.
- Education: Courses, books, and certifications.
- Marketing: Website hosting, domain renewals, advertising.
- Professional Services: Legal or accounting fees.
For a full breakdown, read Top 10 Freelance Tax Deductions You Need to Know in 2025.
State Taxes for Freelancers
If you live in a state that has an income tax, you’ll need to pay that too — typically between 3% and 10% depending on where you live.
States like Florida, Texas, and Washington have no state income tax, while states like California and New York have some of the highest.
How Freelancers Can Stay Organized for Tax Season
1. Use Accounting Software
Apps like QuickBooks Self-Employed or Wave Accounting track income, categorize expenses, and estimate taxes automatically.
Source: QuickBooks Self-Employed Overview.
2. Separate Business and Personal Accounts
Open a separate bank account for freelance income and expenses. It makes recordkeeping simple.
3. Keep Digital Receipts
Use Google Drive or Dropbox to store your invoices, receipts, and tax forms in one folder.
Read our article: The Easiest Way to Track Tax-Deductible Expenses.
Common Freelancer Tax Mistakes
Even seasoned freelancers make errors that cost money or lead to penalties. Avoid these:
- Not setting aside money for quarterly taxes.
- Forgetting to track deductions.
- Mixing business and personal funds.
- Filing late (yes, the IRS charges fees).
If you’ve fallen behind, our post How to Avoid IRS Penalties as a Freelancer explains how to get back on track.
How to Think Like a Business Owner
The biggest mindset shift for freelancers is realizing you are your own boss — and that means treating your work like a business.
That means:
- Creating an emergency tax fund.
- Planning retirement contributions (like SEP-IRA or Solo 401(k)).
- Tracking all invoices and payments.
Source: IRS Self-Employed Retirement Plans.
Being self-employed gives you freedom — but it also gives you responsibility.
FAQs: Are Freelancers Self-Employed?
Q1: What’s the difference between a freelancer and self-employed worker?
A freelancer is a type of self-employed worker. “Self-employed” is the umbrella term the IRS uses.
Q2: Do I need to register a business to freelance?
Not necessarily. Most freelancers operate as sole proprietors, but forming an LLC can protect your personal assets.
Q3: Do freelancers get 1099 forms?
Yes — clients issue a 1099-NEC if they paid you more than $600 in a tax year.
Q4: Do I have to pay taxes even if I made less than $1,000?
Yes — if your net earnings are $400 or more, you must file and may owe self-employment tax.
Q5: Can freelancers get tax refunds?
Yes — if you overpaid or qualify for credits, you can get a refund when filing your return.
The bottom line
If you’re a freelancer in 2025, you’re self-employed — no question about it. That means you’re running your own business, responsible for taxes, and entitled to the same deductions and benefits as any entrepreneur.
It might feel intimidating at first, but once you understand your responsibilities, it becomes empowering. You control your income, your clients, and yes — your tax strategy too.Start by tracking your income, paying quarterly, and claiming every deduction you’re eligible for.
And if you need help along the way, visit FreelanceTaxCalc.com — your go-to guide for taxes made simple.
Our Authority Sources
- IRS: Self-Employed Individuals Tax Center
- IRS: Understanding Self-Employment Tax (Schedule SE)
- IRS: Estimated Taxes (Form 1040-ES)
- NerdWallet: Freelancer Tax Deductions
- QuickBooks: Self-Employed Tax Guide
Simplify your freelance finances and understand your tax responsibilities at FreelanceTaxCalc.com — where clarity meets confidence for self-employed professionals.