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Freelance Rate Calculator for California

Set a freelance rate that covers taxes and the cost of living in California (CA).

California numbers for freelancers

Top state income tax rate13.3%
Cost of living index142 (US average = 100)
Example hourly rate (see below)$155.95

Taxes to build into a California freelance rate

California's top income tax rate is 13.3%. That's the rate on the top bracket — your effective state rate on freelance profit can be lower — but the tax rate you enter should include an allowance for California income tax on top of federal income tax and self-employment tax (15.3% on 92.35% of net self-employment earnings, with the Social Security part capped each year).

California note: $800 minimum LLC franchise tax.

Not sure what blended rate to use? Divide last year's total tax bill by your net profit, or ask a tax professional. This page is general education, not tax advice.

A California rate example

California's cost of living index is 142 (US average = 100). Scale the calculator's default $85,000 target salary by that index and you'd aim for about $121,000. With the other defaults — 4 weeks off, 25 billable hours a week, $10,000 of business expenses and a 30% tax rate — you'd need to bill about $187,143 a year: $155.95 an hour, or $1,248 a day (8 hours).

A cost of living index compares household costs, not what clients will pay. If your clients are remote or national, treat the California figure as a floor for what you need to earn, not a cap on what you can charge.

Billable hours are the number most new freelancers overestimate: admin, sales and unpaid revisions don't bill, which is why the calculator starts at 25 billable hours a week rather than 40.

Open the Freelance Rate Calculator to run your own numbers.

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