Upwork Tax Calculator
Upwork freelancers are self-employed, so clients and Upwork don’t withhold tax. You pay self-employment tax and income tax on your profit. On $70,000 of earnings, that means setting aside about $12,268 for federal tax in 2026.
Set aside about
18% of your earnings
$12,268 total tax on $61,000 net profit
| Self-employment tax | $8,619 |
|---|---|
| Federal income tax | $3,649 |
| State & local income tax | $0 |
| Includes a QBI deduction of | $8,118 |
| Tax on your 1099 income | $12,268 |
Quarterly estimated payments
- Apr 15, 2026 $3,067 to the IRS + $0 to your state
- Jun 15, 2026 $3,067 to the IRS + $0 to your state
- Sep 15, 2026 $3,067 to the IRS + $0 to your state
- Jan 15, 2027 $3,067 to the IRS + $0 to your state
With a W-2 job, the amounts above are the extra tax caused by your 1099 income. The IRS payments also cover any shortfall in your job’s federal withholding.
Federal tax bracket 12%. Paying at least 100% of last year’s total tax in quarterly installments (110% if your income was over $150,000) protects you from IRS underpayment penalties.
How much to set aside from Upwork pay
| You earn per month | Set aside per month | Share of earnings |
|---|---|---|
| $1,500 | $185 | 12% |
| $3,000 | $456 | 15% |
| $5,000 | $855 | 17% |
| $8,000 | $1,458 | 18% |
Federal self-employment and income tax for a single filer with no other job, with typical business costs. Add state tax where it applies.
How the tax on $70,000 of Upwork pay works out
- Start with your profit. $70,000 of earnings, minus $9,000 of other costs, leaves $61,000.
- Self-employment tax. Social Security and Medicare on that profit come to $8,619.
- Federal income tax. After half of that tax, the standard deduction and the $8,118 QBI deduction, $32,472 is taxable, which comes to $3,649.
- Set aside the total. $12,268 a year, or about $3,067 a quarter, plus any state income tax.
Upwork tax forms
Upwork can send a Form 1099-K if your earnings pass the $20,000 and 200-payment threshold. You owe tax on all your earnings either way.
What Upwork freelancers can deduct
- Upwork service fees and the cost of Connects
- Software, subscriptions and online tools
- Computer, equipment and a home office
- Training and courses that improve your current skills
Good to know
- Report your gross earnings and deduct Upwork’s fees, so you’re taxed on what you actually kept.
- Payments from clients outside Upwork count as income too.
- Paying at least last year’s total tax in quarterly installments (110% above $150,000 of income) avoids IRS underpayment penalties.
Frequently asked questions
How much should I set aside for taxes from Upwork?
For federal tax, Upwork freelancers typically need to set aside about 12% to 18% of what they earn, depending on how much they make, plus more in states with an income tax. For example, $70,000 of Upwork earnings works out to about $12,268 of federal tax in 2026, or 18% of earnings.
Do I have to pay taxes on Upwork if I made less than $2,000?
Yes. The $2,000 limit only decides whether Upwork has to send you a 1099-NEC. All your earnings are taxable, and you owe self-employment tax once your net profit reaches about $433.
What can Upwork freelancers deduct?
Ordinary and necessary business costs, such as upwork service fees and the cost of connects, software, subscriptions and online tools, computer, equipment and a home office. Keep receipts for everything you deduct.
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Have income from several apps? Add it all up in the 1099 tax calculator, or see just your Social Security and Medicare with the self-employment tax calculator.
Sources
Estimates only, not tax advice. WageSimply isn’t affiliated with Upwork. Your actual tax depends on your full return.
Built and checked by the WageSimply team, led by Engr. Zakir, an engineer and Google-certified data analyst. Updated for the 2026 tax year and last reviewed .