Yes, and you'll need to claim the income you earn as a freelancer and pay your self-employment taxes. Self-employment taxes include Social Security and Medicare. You have to pay these taxes regardless of your income (unless you earned less than $400). To stay ahead of your tax debt, many business tax advisors recommend that you make quarterly payments to the IRS. Self-employment tax for 2018 is 15.3 percent. You will also need to pay income tax and state taxes. To be safe, save 25 to 30 percent of your income to satisfy your tax obligations. Navigating deductions for your freelance business can be complicated and the laws change often. You should consult with your accountant about how best to manage your business expenses.