How much should a freelancer set aside for taxes?
With the default assumptions, taxes take about 23.2% of a freelancer’s profit ($21,533 on $92,933). Setting aside 25 to 30 percent of profit is a common starting point; the table shows how it varies.
Taxes by profit level
Taxes take 16.4% of a $30,000 profit and 27.1% of a $150,000 profit with the default assumptions.
Single filer, 2026, standard deduction, QBI deduction, 4% state tax, $450 health insurance and $500 retirement per month. Profit is revenue minus business expenses.
| Net profit | Federal income tax | Self-employment tax | State tax | Total | Share of profit | Per quarter |
|---|---|---|---|---|---|---|
| $30,000 | $30 | $4,239 | $659 | $4,929 | 16.4% | $1,232 |
| $60,000 | $2,465 | $8,478 | $1,774 | $12,717 | 21.2% | $3,179 |
| $100,000 | $6,229 | $14,130 | $3,261 | $23,620 | 23.6% | $5,905 |
| $150,000 | $14,407 | $21,194 | $5,120 | $40,721 | 27.1% | $10,180 |
When estimated payments are due
Estimated payments are due April 15, June 15, September 15 and January 15.
Estimated payments (Form 1040-ES) are normally due April 15, June 15, September 15 and January 15; if a date falls on a weekend or holiday, the next business day applies. The payments cover income tax and self-employment tax together.
Avoiding an underpayment penalty
The IRS generally expects estimated payments if you expect to owe $1,000 or more. You usually avoid the underpayment penalty if you pay at least 90 percent of this year’s tax or 100 percent of last year’s tax (110 percent if your adjusted gross income was above $150,000). Check the current rules on the IRS estimated taxes page or with a tax professional, because exceptions apply.
A simple routine
- Move a fixed share of every payment into a separate savings account.
- Pay the estimate each quarter and keep the confirmation.
- Re-run the calculator when your income or expenses change.
Frequently asked questions
What percentage should a freelancer save for taxes?
A common starting point is 25 to 30 percent of profit. With the default assumptions the calculator arrives at 23.2% including a 4% state tax; your own figure depends on income, state and deductions.
Do I pay taxes on revenue or on profit?
On profit: revenue minus deductible business expenses. Self-employment tax is calculated on 92.35 percent of net profit.