How Much to Set Aside for Taxes (Freelancer)

A simple US estimate of the share of each invoice to put aside for taxes. Everything runs in your browser.

Set-aside estimate

Expected yearly profit ($)

Your federal marginal income tax rate (%)

State income tax rate (%)

Typical client payment ($)

Results

Self-employment tax / yr

Income tax (approx.) / yr

Set-aside rate

Set aside from each payment

Quarterly estimated payment

Why freelancers need a set-aside

Nobody withholds tax from freelance income. In the US you owe self-employment tax (15.3% on 92.35% of net earnings, Social Security part capped at the $184,500 2026 wage base) plus federal and state income tax, paid through quarterly estimated payments (April, June, September, January). This estimate applies your marginal rate to profit after half of SE tax and the 2026 standard deduction — a deliberately conservative shortcut. Many freelancers simply save 25–35% of every payment in a separate account.

For the full calculation, use the self-employment tax calculator and take-home pay calculator. This is not tax advice.

FAQ

When are quarterly taxes due?

Generally April 15, June 15, September 15 and January 15 of the next year.

What if I underpay?

The IRS can charge an underpayment penalty; the safe harbor is paying 100% (110% for higher incomes) of last year’s tax.