# 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.

## Sources

- [IRS: Estimated taxes](https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes)
- [IRS: About Form 1040-ES](https://www.irs.gov/forms-pubs/about-form-1040-es)
- [IRS: Self-employment tax (Social Security and Medicare taxes)](https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes)
- [IRS: Tax inflation adjustments for tax year 2026](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill)

Updated October 2026. Simplified estimate, not tax or legal advice.