How much should a freelancer set aside for taxes?

How much should I set aside for taxes as a freelancer?

Enough to cover two federal taxes, plus any state tax. The first is self-employment tax: the IRS charges 15.3% on 92.35% of your net self-employment earnings, which works out to about 14.13% of your profit before any income tax. The second is regular income tax, which depends on your total income, deductions, credits and filing status. So a complete set-aside covers that 14.1% plus the income tax and any state tax on your profit. Pick the percentage with a tax professional or the IRS Form 1040-ES worksheet, move it out of every payment, and pay it in four estimated payments (Apr 15, Jun 15, Sep 15 2026; Jan 15 2027).

Last verified October 27, 2026 against IRS Topic no. 554, Self-employment tax, IRS: Self-employment tax (Social Security and Medicare taxes), IRS: Estimated taxes, IRS Form 1040-ES (2026), Estimated Tax for Individuals (PDF). Fee change tracker · How we verify

Part 1: self-employment tax (the part every freelancer pays)

Self-employment tax is Social Security and Medicare for people who work for themselves. The IRS sets the rate at 15.3% (12.4% Social Security + 2.9% Medicare) and says that generally the amount subject to it is 92.35% of your net earnings, meaning income minus ordinary and necessary business expenses. You owe it, and file Schedule SE, once net self-employment earnings reach $400. Social Security has a yearly earnings cap that changes every year (see Schedule SE), and an Additional Medicare Tax of 0.9% applies to self-employment income above $200,000 for single filers ($250,000 married filing jointly, $125,000 married filing separately).

Net profit (income minus expenses)	× 92.35%	× 15.3% = SE tax	Share of profit
$10,000	$9,235	$1,413	14.13%
$30,000	$27,705	$4,239	14.13%
$60,000	$55,410	$8,478	14.13%

Arithmetic illustration of the IRS rule, below the Social Security earnings cap, with no other wages. It is not your tax bill. You can deduct half of SE tax when figuring adjusted gross income, which lowers income tax, not SE tax.

Part 2: income tax (the part that depends on you)

Your profit is also part of your taxable income. How much income tax that adds depends on your other income, deductions, credits, filing status and state, which is why there is no single correct percentage. The IRS suggests starting from last year's return and using the worksheet in Form 1040-ES; if your income turns out higher or lower, refigure it for the next quarter.

Turn it into a habit

Choose a percentage: the ~14.1% self-employment portion plus the income tax and state tax share you and your tax professional settle on.
Every time a client pays you, move that percentage to a separate savings account the same day. The freelancer set-aside calculator shows the amount per payment, month and year.
Pay estimated tax by each due date: April 15, 2026, June 15, 2026, September 15, 2026 and January 15, 2027. The IRS says paying weekly, bi-weekly or monthly is allowed, as long as enough is paid by each deadline. See the 2026 estimated tax planner.
Each quarter, compare the savings balance with what you actually owe and adjust the percentage.

Do you have to pay quarterly?

The IRS says individuals, including sole proprietors, generally must make estimated payments if they expect to owe $1,000 or more when they file. Most people avoid the underpayment penalty if they owe less than $1,000 after withholding and credits, or paid at least 90% of this year's tax or 100% of last year's, whichever is smaller (110% of last year's if your prior-year AGI was over $150,000, per Form 1040-ES). Payment apps and marketplaces may also send you a 1099-K; the 1099-K checker explains when.

Questions

What percentage should a freelancer save for taxes?

There is no single official percentage. Self-employment tax alone is 15.3% on 92.35% of net earnings, about 14.1% of profit. Add your income tax and state tax share, which depend on your situation; a tax professional or the Form 1040-ES worksheet can help you choose.

Is the 15.3% on all my income?

No. It applies to net self-employment earnings (income minus business expenses), and generally only 92.35% of that amount is subject to it, according to IRS Topic 554. The Social Security part stops at a yearly earnings cap.

When are 2026 estimated taxes due?

For calendar-year individuals, IRS Form 1040-ES (2026) lists April 15, 2026, June 15, 2026, September 15, 2026, January 15, 2027. If a date falls on a weekend or holiday, the next business day counts.

Do I pay self-employment tax if I made a little on the side?

The IRS says you must pay self-employment tax and file Schedule SE if net earnings from self-employment were $400 or more.

Can I pay estimated tax monthly instead of quarterly?

Yes. The IRS says paying weekly, bi-weekly or monthly is allowed, as long as you've paid enough by the end of each period.

Is this tax advice?

No. It summarizes public IRS guidance and shows arithmetic. Your situation may differ; ask a tax professional before relying on a number.

General information, not tax, legal or accounting advice. Rates change: check the linked official source before you rely on a number. Not yet reviewed by a CPA or EA.