Free Invoice Generator

Create professional invoices and see your tax set-aside — all in your browser.

Invoice Details

Your Business Name

Client Name

Invoice #

Issue Date

Due Date

Line Items

Description

Qty/Hrs

Rate ($)

Amount

$3,000.00

$600.00

Sales Tax (%)

Discount (%)

Notes / Terms

Subtotal

$3,600.00

Discount

-$0.00

Tax

$0.00

Total Due

$3,600.00

Tax Set-Aside Estimate (Freelancer)

SE Tax (15.3%)

$509.00

Income Tax (~22%)

$736.00

Net After Tax

$2,355.00

Set Aside for IRS

$1,245.00

Save 25–30% of every invoice for taxes. Actual rate depends on your total annual income and deductions.

Bill To: Client Name

Description	Qty	Rate	Amount
Web Development	40	$75.00	$3,000.00
Project Management	10	$60.00	$600.00

Subtotal: $3,600.00

Total: $3,600.00

Notes:

Payment due within 30 days. Late payments subject to 1.5% monthly interest.

This generates a basic invoice for freelance and small business use. Tax set-aside is an estimate — consult a CPA for quarterly payment amounts.

Why Every Freelancer Needs Proper Invoices

Professional invoices aren't just for getting paid — they're legal documents that establish your business relationship, set payment terms, and create the paper trail the IRS expects from self-employed individuals. Without invoices, you can't properly track income, claim deductions, or defend your business expenses in an audit. Clients with 1099 reporting requirements also need your invoices for their records.

Common Freelance Hourly Rates by Industry

Industry	Beginner	Mid-Level	Expert
Web Development	$40–$75	$75–$150	$150–$300
Graphic Design	$30–$60	$60–$100	$100–$200
Content Writing	$25–$50	$50–$100	$100–$250
Marketing/SEO	$40–$75	$75–$150	$150–$300
Photography	$50–$100	$100–$200	$200–$500
Consulting	$75–$150	$150–$300	$300–$600
Video Production	$50–$100	$100–$200	$200–$400

Invoice Payment Terms Explained

Term	Meaning	When to Use
Due on Receipt	Pay immediately	Small jobs, new clients
Net 15	Due within 15 days	Ongoing small projects
Net 30	Due within 30 days	Standard for most freelancers
Net 60	Due within 60 days	Enterprise/corporate clients
2/10 Net 30	2% discount if paid in 10 days	Incentivize early payment
50% Upfront	Half before, half after	Large projects, new clients

Tax Set-Aside: The 25-30% Rule

As a freelancer, no employer withholds taxes for you. For every dollar invoiced, set aside 25–30% for taxes: 15.3% self-employment tax (Social Security + Medicare) plus federal income tax (12–24% depending on your bracket, but reduced by the SE deduction). If you live in a state with income tax, add another 3–10%. Quarterly estimated payments are due in April, June, September, and January.

Frequently Asked Questions

Do I need to charge sales tax on my invoices?

It depends on what you sell and where. Services are generally exempt from sales tax in most states, but some states (like Texas, New Mexico, Hawaii) do tax certain services. If you sell physical goods or digital products, you likely need to collect sales tax based on the buyer's location. Check your state's rules — getting this wrong can lead to back-tax assessments with penalties.

What happens if a client doesn't pay?

Start with a polite reminder at 7 days past due, then a firmer notice at 14 days. At 30+ days, send a formal demand letter referencing your contract terms and late payment fees. At 60+ days, consider a collection agency (they take 25–50% but recover something) or small claims court for amounts under your state's limit ($5,000–$15,000 depending on state). Prevention is better: require deposits for new clients and milestone payments for large projects.