Ask HN: Freelancer Rates in the US

#1

Post by dirtnugget » Mon, Apr 13, 2020, 12:38 PM UTC

Hello,

I have often been somewhat confused when it comes to hourly rates for freelancers in IT. While it is pretty normal to charge more than 60€/h here in Europe I’m always shocked to come across postings like these from the US:

https://soshace.com/jobs/python-back-end-web-developer-remot...

This is a remote python job for an intermediate or senior developer that pays 20-30$/h. And not the first one of that kind I came across.

That would mean a freelancer makes less than half the money as compared to a 9-5.

Is this normal?

Re: Ask HN: Freelancer Rates in the US

#2

Post by gt2 » Mon, Apr 13, 2020, 12:47 PM UTC

Like anything else you can find all ranges offered and all ranges accepted. I thought the exact opposite was the norm, with higher rates in US companies than UK/europe.

Senior level rates in US range from 100-300/hr. I know it's a big range, but it comes down to speed, creativity, references, portfolio, fit for the project, availability.

As far as the half the money as a 9-5, it's actually the other way around-- as a freelancer, you need more money to compensate for things like insurance, taxes, risk that come with being an independent/freelancer. So they say to match a 75k salary, you need approximately 150/hr.

Re: Ask HN: Freelancer Rates in the US

#3

Post by sourc3 » Mon, Apr 13, 2020, 12:52 PM UTC

Expected? Yes. Normal? Yes. Only thing there is out there? No.

For every $30/hr posting on the net, there is another one for $100. I also personally know of folks who are making +$150 with Django. It really depends on who you work for.

Although you will see a lot more of `build Uber for $5K` type of one off jobs, there are some reputable companies who need more capacity on new projects.

If I were you I would cast a wider net and sample the market more.

Re: Ask HN: Freelancer Rates in the US

#4

Post by dirtnugget » Mon, Apr 13, 2020, 12:55 PM UTC

sourc3 wrote: post #3

Expected? Yes. Normal? Yes. Only thing there is out there? No. For every $30/hr posting on the net, there is another one for $100. I also personally know of folks who are making +$150 with Django. It really depends on who you work for. Although you will see a lot more of `build Uber for $5K` type of one off jobs, there are some reputable companies who need more capacity on new projects. If I were you I would cast a w…

How much does somebody in this kind of field in the US pay in taxes? As for me (Germany) I have to basically give away half, such a posting would pay me basically like a very entry position after taxes.

Re: Ask HN: Freelancer Rates in the US

#5

Post by blocked_again » Mon, Apr 13, 2020, 12:57 PM UTC

Since the project is long term, 20$ - 30$ per hour comes to around $41k - $61k per year. This is a pretty good amount in the vast majority of the countries. The target audience is obviously not developers living in Silicon Valley. Probably looking for developers from Eastern Europe, Asia, Africa or South America. Also, there are a lot of countries that offer tax benefits when you are working as a freelancer.

Re: Ask HN: Freelancer Rates in the US

#6

Post by dirtnugget » Mon, Apr 13, 2020, 1:03 PM UTC

blocked_again wrote: post #5

Since the project is long term, 20$ - 30$ per hour comes to around $41k - $61k per year. This is a pretty good amount in the vast majority of the countries. The target audience is obviously not developers living in Silicon Valley. Probably looking for developers from Eastern Europe, Asia, Africa or South America. Also, there are a lot of countries that offer tax benefits when you are working as a freelancer.

That’s 40-60k before taxes. I realize that taxes I’m the IS are much lower, but do you have any idea on a rough percentage?

Re: Ask HN: Freelancer Rates in the US

#7

Post by jxf » Mon, Apr 13, 2020, 1:04 PM UTC

dirtnugget wrote: post #4

sourc3 wrote: post #3

Expected? Yes. Normal? Yes. Only thing there is out there? No. For every $30/hr posting on the net, there is another one for $100. I also personally know of folks who are making +$150 with Django. It really depends on who you work for. Although you will see a lot more of `build Uber for $5K` type of one off jobs, there are some reputable companies who need more capacity on new projects. If I were you I would cast a w…

How much does somebody in this kind of field in the US pay in taxes? As for me (Germany) I have to basically give away half, such a posting would pay me basically like a very entry position after taxes.

In the US you would pay roughly 35% to 40% in taxes. However (in general), expenses incurred in the course of your business would not be taxable.

For example, if you earned $150,000 as a contractor, but you incurred $30,000 in expenses then you would have $120,000 in potentially taxable income.

The tax code is very, very complex, though, and there isn't a simple answer to this question. There are a vast array of factors that would shift how much you pay in tax up or down, and this complexity is heavily exploited by lots of folks.

Re: Ask HN: Freelancer Rates in the US

#8

Post by AzzieElbab » Mon, Apr 13, 2020, 1:06 PM UTC

gt2 wrote: post #2

Like anything else you can find all ranges offered and all ranges accepted. I thought the exact opposite was the norm, with higher rates in US companies than UK/europe. Senior level rates in US range from 100-300/hr. I know it's a big range, but it comes down to speed, creativity, references, portfolio, fit for the project, availability. As far as the half the money as a 9-5, it's actually the other way around-- as a…

150/hr sums up to 200k/year if you work 30 hours a week for 11 months. ----- Fixed typo

Re: Ask HN: Freelancer Rates in the US

#9

Post by robjan » Mon, Apr 13, 2020, 1:08 PM UTC

dirtnugget wrote: post #6

blocked_again wrote: post #5

Since the project is long term, 20$ - 30$ per hour comes to around $41k - $61k per year. This is a pretty good amount in the vast majority of the countries. The target audience is obviously not developers living in Silicon Valley. Probably looking for developers from Eastern Europe, Asia, Africa or South America. Also, there are a lot of countries that offer tax benefits when you are working as a freelancer.

That’s 40-60k before taxes. I realize that taxes I’m the IS are much lower, but do you have any idea on a rough percentage?

As GP just said, this posting is probably not intended to be taken up by a US person. There are many markets around the world where that's a very good salary.

Re: Ask HN: Freelancer Rates in the US

#10

Post by [deleted] » Mon, Apr 13, 2020, 1:08 PM UTC

AzzieElbab wrote: post #8

gt2 wrote: post #2

Like anything else you can find all ranges offered and all ranges accepted. I thought the exact opposite was the norm, with higher rates in US companies than UK/europe. Senior level rates in US range from 100-300/hr. I know it's a big range, but it comes down to speed, creativity, references, portfolio, fit for the project, availability. As far as the half the money as a 9-5, it's actually the other way around-- as a…

150/hr sums up to 200k/year if you work 30 hours a week for 11 months. ----- Fixed typo

[deleted]