Built for freelancers who hate tax surprises

When you work for an employer, your employer pays half of your Social Security and Medicare taxes — 7.65% — and you pay the other half through payroll deductions. As a freelancer you are both the employer and the employee, so you pay the full 15.3% yourself. This is called self-employment tax and it is on top of your regular income tax. A freelancer earning $60,000 pays approximately $8,478 in self-employment tax alone before any income tax is calculated. TaxWise calculates this for you automatically so you always know the full picture.

If you expect to owe more than $1,000 in taxes for the year you are required by the IRS to make quarterly estimated payments. This applies to virtually every full-time freelancer and most part-time freelancers. The four deadlines in 2026 are April 15, June 15, September 15, and January 15 2027. Missing a deadline does not mean you owe nothing — it means the IRS charges you a penalty on top of what you owe, currently around 8% annual interest on the unpaid amount.

The IRS charges an underpayment penalty calculated from the date the payment was due, not from when you eventually pay. For someone owing $14,000 in annual taxes who makes no quarterly payments, the penalty can reach $800 to $1,200. You still owe the full tax bill — the penalty is extra. The good news is the penalty is avoidable with a small amount of planning. TaxWise Starter sends you email reminders 14 days and 3 days before each deadline so you always have time to prepare.

The safe harbor rule says you will not face an underpayment penalty if you pay at least 100% of what you owed in taxes last year — or 110% if your adjusted gross income was over $150,000. This means even if your income grows significantly this year, paying the same quarterly amounts as last year protects you from penalties. TaxWise calculates your estimates based on your current income, but always mentions the safe harbor option if it applies.

Self-employment tax (15.3%) covers Social Security and Medicare. Income tax (10% to 37% depending on your bracket) is what most people think of as taxes. As a freelancer you pay both. The only silver lining is you can deduct half of your self-employment tax from your federal taxable income, which slightly reduces your income tax. TaxWise handles both calculations automatically and shows you each one separately so you know exactly where every dollar goes.

Yes, but there is a useful trick. If your employer withholds enough tax from your salary to cover your freelance income too, you may not need to make separate quarterly payments. You can ask your employer to withhold an extra amount each pay period by submitting a new W-4. TaxWise accounts for W-2 income in its calculator so you can see your total tax picture and decide whether extra withholding makes more sense than quarterly payments.

The core calculator is completely free and always will be. Enter your income and state, get your full tax breakdown, see all four quarterly deadlines, and share your result — all without creating an account. The free version gives you everything you need to understand what you owe. Starter ($9/month) adds email reminders before each deadline. Pro ($29/month) adds live income tracking and deduction logging so your estimate updates all year.

TaxWise uses the official 2026 IRS tax brackets, the exact self-employment tax rate of 15.3%, and verified state income tax rates for all 50 states. The calculations are updated each year when the IRS releases new figures. For most freelancers with straightforward situations — no rental income, no investment income, no dependents with complex credits — TaxWise estimates will be very close to your actual liability. For complex situations we always recommend confirming with a tax professional before making financial decisions.

TurboTax and H&R Block help you file your taxes after the year ends. TaxWise helps you manage your taxes throughout the year so you are never caught off guard. TaxWise does not file returns — it estimates what you owe each quarter so you can set aside the right amount and pay on time. Think of TaxWise as your quarterly tax planner and TurboTax as your annual tax filer. They solve different problems and many freelancers use both.

The free calculator runs without storing anything — your calculation happens in your browser and nothing is saved. If you create an account your tax inputs and results are stored in an encrypted database hosted by Supabase, a SOC 2 Type II certified provider. We never store bank account details, Social Security numbers, or any information that could be used for identity theft. Payment processing is handled entirely by Razorpay — we never see your card details. Full details are in our Privacy Policy.

All 50 US states plus DC. Nine states have no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming) — TaxWise correctly shows $0 state tax for these. For all other states TaxWise uses current income tax rates to calculate your state liability.

Yes. TaxWise calculates based on your total annual freelance income regardless of how many clients you have. On the Pro plan you can log individual income entries by client and source, which helps you understand which clients are generating the most tax liability throughout the year.

Start with free — it costs nothing and gives you your tax breakdown instantly. If you want email reminders before each quarterly deadline so you never miss a payment, Starter at $9/month pays for itself the first time it saves you an $800 IRS penalty. If your income varies month to month and you want your tax estimate to update automatically as you earn, Pro at $29/month gives you the income tracker and deduction logger to stay accurate all year.

The free trial gives you full access to everything in your chosen plan — Starter or Pro — for 7 days. No credit card charge during the trial. If you cancel before the trial ends you will not be charged. If you do not cancel your subscription begins at the regular monthly price.

Yes. Cancel from your profile page at any time with no questions asked. When you cancel your access continues until the end of the current billing period. We do not offer partial refunds for unused days but if you were charged due to a technical error on our side we will refund you promptly. See our Refund Policy for full details.

TaxWise handles quarterly tax estimation — knowing what to pay and when. A CPA or enrolled agent handles tax filing, optimizing deductions specific to your situation, handling audits, and advising on more complex tax strategy. We recommend using TaxWise for quarterly management and a tax professional for your annual return. TaxWise Pro generates a year-end summary formatted to share with your accountant, which saves them time and can reduce your accounting fees.

This is exactly the problem Pro was built for. On the free plan and Starter your estimate is based on a snapshot — whatever income you entered when you ran the calculator. On Pro you log every payment as you receive it and your tax estimate updates automatically. If you have a slow month your estimated quarterly payment adjusts down. If you land a big project it adjusts up. You always know your current real liability, not a months-old guess.