Why freelancers must charge 1.5–2× the employee hourly rate
Employers pay half of FICA, provide paid leave, equipment and benefits, and pay you for non-billable time. As a freelancer you pay 15.3% self-employment tax on 92.35% of net earnings, fund your own health and retirement, and only get paid for billable hours.
Pricing beyond hourly
Once you know your floor, move to project or value pricing. Clients buy outcomes, and a fixed price rewards you for getting faster with experience and AI tools.
Frequently asked questions
What is self-employment tax in 2026?
15.3% (12.4% Social Security up to the $184,500 wage base plus 2.9% Medicare) on 92.35% of net self-employment earnings. Half is deductible for income tax.
How many billable hours are realistic?
20–30 per week for most solo professionals once you account for sales, admin and learning.
Last reviewed October 21, 2026 by the 55300 editorial team. Read our methodology & sources.