How Much Should a Freelancer Set Aside for Taxes?
Short answer: plan on 25–30% of your net profit — but the exact number is easy to pin down, and getting it right keeps April from becoming a disaster.
Why you have to do this yourself
When you were an employee, your employer quietly withheld taxes from every paycheck. As a freelancer, no one does that for you. Every payment you receive is pre-tax — and the IRS still expects its share four times a year. The money you don’t set aside will feel like income right up until the bill arrives.
What the set-aside actually covers
Two taxes come out of freelance profit:
- Self-employment tax — 15.3%. This is Social Security and Medicare. Employees split it with their employer; you pay both halves (though you deduct one half against income tax).
- Federal income tax. Your profit stacks on top of any other household income and is taxed at your marginal rate after the standard deduction.
- State income tax — in most states, on roughly the same schedule.
Add those up and 25–30% is a reasonable rule of thumb for many freelancers. But your real number depends on how much you make and where you live.
Get your exact number. Plug your expected profit into the Self-Employment Tax Calculator — it shows your total tax, your set-aside percentage, and your quarterly amount in seconds.
Set the money aside automatically
The freelancers who never get burned treat taxes as not-their-money the moment it lands. A simple system: open a separate savings account, and every time a client pays you, immediately move your set-aside percentage into it. When quarterly deadlines come, the cash is already waiting.
Don’t miss the quarterly deadlines
For 2026 income, estimated payments are generally due April 15, June 15, September 15, 2026, and January 15, 2027. Pay roughly a quarter of your expected tax by each date to avoid the IRS underpayment penalty. The Quarterly Tax Calculator tells you what to send each period — and how to catch up if you’re behind.
The takeaway
Save 25–30% as a default, confirm your real figure with a calculator, keep it in a separate account, and pay quarterly. Do that and tax season becomes a non-event instead of an emergency.
General information, not tax advice. Confirm your specifics with a CPA.
Frequently asked questions
What percentage should I save for taxes as a freelancer?
A common starting point is 25–30% of your net profit, but the right number depends on your total income and state. Self-employment tax alone is 15.3%, and federal income tax stacks on top. Use a self-employment tax calculator to get your exact set-aside percentage.
Do I have to pay taxes quarterly?
If you expect to owe $1,000 or more, the IRS wants estimated payments four times a year — generally April 15, June 15, September 15, and January 15. Skipping them can trigger an underpayment penalty even if you pay in full at tax time.
What if I set aside too much?
Then you get it back as a refund or roll it into next year — far better than being blindsided by a bill you can’t cover. Erring slightly high is the safe play.