How much do self-employed IT and software freelancers make?

Census code 5415, "Computer Systems Design and Related Services", covers custom programming, systems design, IT consulting and computer facilities management. Freelance developers who file as businesses are counted here.

In 2024, 334,886 US businesses with no paid employees were classified under this code. Between them they reported $21.1 billion in revenue, an average of $62,902 per firm, 8% above the $58,194 average for all businesses with no employees.

What stands out

The official count puts 56.6% of IT businesses with no employees under $25,000 in revenue, close to the all-industry 60.4%, and 16.2% at $100,000 or more.

This trade has the lowest sole proprietor share here, 82.7%. Firms set up as partnerships or corporations averaged $148,482, against $44,945 for sole proprietors.

Delaware holds 2.9 times its national share of these firms and Wyoming 1.7. Washington holds 1.6. These concentrations describe business mailing addresses; they do not locate IT work or explain the concentrations.

What a typical firm brings in

The average hides a wide spread. 36% of firms reported under $10,000 (all industries: 37.3%), 56.6% under $25,000 (all: 60.4%) and 71% under $50,000. 16.2% reached $100,000 or more (all: 13.3%). The middle firm falls in the "$10,000 to $24,999" bracket.

How much is left after costs

The IRS publishes tax-return totals for sole proprietors by industry. For "Computer systems design services", which matches this trade's Census code, sole proprietors reported $16.8 billion in business receipts in tax year 2023. After netting losses against profits, they reported $6.2 billion in net business income: 37 cents for every dollar of receipts, or $19,550 per return, before personal income tax. 29.6% of returns showed no positive net income. This is an industry ratio for 2023 sole proprietorship returns, including businesses with paid employees. It is before personal income tax and is not a typical owner's margin; the Census figures above cover 2024 businesses with no paid employees.

How it varies by state

California has the most firms, at 47,283. Among the 49 states (including DC) with at least 500 firms, revenue per firm is highest in Delaware ($183,727) and lowest in Mississippi ($39,279). The Census assigns each business to a state by its mailing address, which may not be where the work is done. These data do not explain state differences or show take-home pay.

Frequently asked questions

How much do self-employed IT and software freelancers make?

Census data for 2024 show 334,886 US businesses with no paid employees in this trade, reporting an average of $62,902 in revenue each. 56.6% took in under $25,000, against 60.4% of all businesses with no employees. Revenue is what the business takes in before costs, so it is not the owner's income.

Which state has the highest revenue per firm for self-employed IT and software freelancers?

Among the 49 states (including DC) with at least 500 firms, Delaware had the highest average revenue per firm, at $183,727, and Mississippi the lowest, at $39,279. States are assigned by business mailing address, and these figures do not show take-home pay.

Sources and method

• Firms, receipts, legal form and receipts size: U.S. Census Bureau, Nonemployer Statistics, reference year 2024, released September 2026, NAICS 5415 (methodology). Revenue per firm is total receipts divided by the number of firms. Revenue for partnerships and corporations is total receipts less sole proprietor receipts, divided by the number of those firms. State concentration compares each state's share of this trade's firms with its share of all businesses with no employees.
• Net business income per dollar: IRS, Statistics of Income, Nonfarm Sole Proprietorship Statistics, tax year 2023, Table 1, "Computer systems design services". Net income less deficit divided by business receipts.
• Data are in the public domain. Minted Empire is not endorsed or certified by the Census Bureau or the IRS.