Know exactly what share of every client payment to put away. Enter your expected freelance income, expenses and state rate to get the percentage to set aside for self-employment, federal and state income tax, the amount per invoice and your quarterly estimated payment.
Last updated:
Your freelance year
$
Total 1099 / client payments for the year.
$
Software, equipment, home office, mileage…
$
Shows how much of this payment to put away.
%
0 in states with no income tax.
Tax situation
$
Freelance income is taxed on top of these.
$
Pre-tax retirement savings lower income tax (not SE tax).
Enter your values to see the result.
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How to use the How Much to Save for Taxes Calculator
Enter your expected freelance income for the year and your business expenses.
Add an invoice amount to see how much of that payment to save.
Enter your state rate, filing status and any W-2 wages in your household.
Add retirement contributions if you fund a SEP-IRA or solo 401(k).
Save the set-aside % from each payment into a separate tax account and pay it as quarterly estimated taxes.
How the set-aside percentage is calculated
Profit = gross freelance income − business expenses.
Self-employment tax = profit × 92.35% × 15.3% (12.4% Social Security up to the wage base less any W-2 wages, 2.9% Medicare), plus 0.9% Additional Medicare above $200,000 single / $250,000 joint.
Federal income tax = tax on (wages + profit − half of SE tax − retirement contributions − standard deduction − QBI) minus tax on your wages alone.
State tax = (profit − half of SE tax − retirement contributions) × your state rate.
Set-aside % = total of the above ÷ gross freelance income.
Example (2026, single, no other income): $80,000 gross, $8,000 expenses, 5% state. Profit $72,000, SE tax $10,173, federal income tax $4,630 after the standard and QBI deductions, state $3,346. Total $18,149, so set aside about 22.7% of each payment, or $567 from a $2,500 invoice.
Rough set-aside guide (2026, single, no W-2 job, 10% expenses)
Gross freelance income
No state income tax
5% state tax
$30,000
15.1%
19.3%
$60,000
17.8%
21.9%
$100,000
19.3%
23.5%
$150,000
22.0%
26.2%
$250,000
23.6%
27.8%
Includes the 20% QBI deduction. A W-2 job, a spouse's income or a higher state rate push the percentage up; retirement contributions and larger expenses bring it down.
Tips for saving tax as a freelancer
Open a separate savings account and move the set-aside % there the day each payment lands.
Round up: saving a few points more than needed covers income you did not expect and becomes a bonus at tax time.
How much should I set aside for taxes as a freelancer?
Many freelancers end up between roughly 15% and 35% of gross income, depending on profit, bracket and state. Self-employment tax alone is about 14.1% of profit; federal income tax and state tax come on top. Enter your numbers above for a specific percentage.
Why is freelance income taxed more than a salary?
Employees split Social Security and Medicare with their employer (7.65% each). Self-employed people pay both halves, 15.3% on 92.35% of profit, plus regular income tax. Half of the SE tax is deductible, which the calculator includes.
Should I base the percentage on gross income or profit?
Save from gross payments, because that is the money you receive. The calculator works out tax on profit (after expenses) and divides by gross income, so the percentage you see is what to set aside from each payment as it comes in.
What if I also have a W-2 job?
Your freelance income is taxed on top of your wages, so it lands in a higher bracket. Your W-2 wages also use up part of the Social Security wage base. Enter your wages and the calculator figures the extra tax caused by the freelance income only.
When do I pay the money I set aside?
Through quarterly estimated tax payments (Form 1040-ES), usually due April 15, June 15, September 15 and January 15. Paying at least 100% of last year's total tax (110% if your AGI was over $150,000) in timely installments generally avoids the underpayment penalty.
Can I lower the amount I need to save?
Yes: track all business expenses, contribute to a SEP-IRA or solo 401(k), and claim the QBI deduction if you qualify. Retirement contributions reduce income tax but not self-employment tax.
Does this include local or city taxes?
No. Add any city or county income tax rate to the state rate field to include it.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.