What is Take-Home Pay?
The net income a freelancer keeps after paying all taxes, business expenses, health insurance, and other deductions from gross revenue.
What Is Freelance Take-Home Pay?
Take-home pay is what you actually keep from your freelance income after all deductions. For freelancers, the gap between gross revenue and net take-home is typically much larger than for employees.
What Reduces Your Take-Home Pay?
Business expenses (reduce taxable income):
Self-employment tax (15.3% of net earnings × 0.9235)
Federal income tax (10-37% depending on income and filing status)
State income tax (0-13.3% depending on state)
Other deductions:
A Rough Rule of Thumb
As a general starting point: set aside 25-35% of every payment you receive for taxes. The exact percentage depends on your income level, state, and deductions.
Calculating Your True Take-Home
Use our take-home pay calculator to input your specific situation — gross income, business expenses, federal and state tax rates, health insurance, and retirement contributions — and see your net annual and monthly take-home.
Related Calculators
Take-Home Pay Calculator
Calculate your true freelance take-home pay after self-employment tax, income tax, business expenses, health insurance, and retirement contributions.
Self-Employment Tax Calculator
Estimate your self-employment tax (SE tax), federal income tax, and total tax bill as a freelancer or independent contractor.
Income Goal Calculator
Calculate the gross revenue you need to earn as a freelancer to hit your desired take-home pay after taxes and expenses.
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