Do freelancers have to pay tax?
Yes, freelancers have to pay tax. In the United States, freelancers are considered self-employed and are responsible for paying both income tax and self-employment tax.
Income tax is a tax on your earnings, and the amount you owe depends on your tax bracket. Self-employment tax is a social security and Medicare tax that you pay on your earnings. The self-employment tax rate is 15.3% in 2023.
Freelancers typically pay their taxes quarterly. You can make estimated tax payments throughout the year, or you can pay your taxes in full after you file your tax return.