Comment by mtberatwork

Well, there's more than just self-employment tax that you are paying as a freelancer. There's also state and local taxes to consider. Depending on where you reside, your county may collect taxes on gross receipts or collect property taxes on office furniture/equipment. Furthermore, you will really want to have some form of business insurance (like errors and omissions) on hand as well as your own health insurance and retirement fund. All of this will come out of your pocket and needs to be considered when determining an hourly rate to charge.