How much should I set aside for taxes as a freelancer?
If no one withholds tax from your pay, the money to cover it has to come from you. A safe starting rule is 25–35% of net profit, but the real number depends on how much you earn, how you file, and your deductions. Here's how it works for 2026 — and a free calculator that gives you the exact figure.
- ✓Set aside 25–35% of net profit as a rule of thumb, then compute the exact amount.
- ✓You owe two taxes: federal income tax and self-employment tax (15.3%).
- ✓Pay in four installments and hit the safe harbor to avoid a penalty.
The short answer
Most freelancers land between 20% and 35% of net profit once both taxes combine. A single freelancer netting $80,000 owes about $16,647 in 2026 — an effective rate near 20.8%, or roughly $1,387/month. The calculator gives your figure in seconds.
| Self-employment tax | $11,304 |
| Federal income tax | $5,344 |
| Total federal tax | $16,647 |
| Q1 | April 15, 2026 | $4,162 |
| Q2 | June 15, 2026 | $4,162 |
| Q3 | September 15, 2026 | $4,162 |
| Q4 | January 15, 2027 | $4,161 |
Why a flat percentage is only a starting point
A rule of thumb ignores your filing status, the standard deduction ($16,100 single / $32,200 married filing jointly for 2026), the 20% QBI deduction, retirement contributions, and which bracket your last dollars land in. Two freelancers with the same revenue can owe very different amounts.
You owe two taxes, not one
Self-employment tax (15.3% — Social Security + Medicare) covers the half an employer would normally pay. It applies to 92.35% of your profit and stacks on top of income tax. That's why self-employment feels heavier than a salaried job at the same pay.
Set the money aside as you earn
Open a separate savings account and move your set-aside percentage out of every payment you receive, so the quarterly due dates are never a scramble.
What this doesn't cover
State and local tax, tax credits, the net investment income tax, and the full QBI limitation for higher earners. It's a planning estimate, not tax advice.
Frequently asked questions
Expect 20–35% of net profit once self-employment tax (15.3%) and federal income tax combine. Enter your numbers for an exact figure.
Related calculators & guides
A planning estimate, not tax advice. Figures use IRS Rev. Proc. 2025-32 (2026). Confirm decisions with real money on the line with a CPA or enrolled agent.