How Much to Save for Taxes as a Freelancer
Nearly half of self-employed people don't consistently set money aside for taxes as they get paid — by tax time, the money's often already spent. Here's a simple habit that fixes it.
Move a fixed combined percentage (commonly 25–35%, covering self-employment tax plus your federal and state estimate) to a separate savings account the moment each payment arrives.
Why per-payment beats quarterly-only
Waiting until quarterly tax day to figure out what you owe means doing math on money that may already be spent. Setting aside a percentage the moment you're paid turns tax savings into a reflex, not a scramble.
Picking your percentage
Self-employment tax alone is roughly 15.3% of net earnings; add your expected federal and state income tax rates on top. Many self-employed people land around 25–35% combined — use the Quarterly Tax Calculator for a more precise annual estimate tailored to your income level.
Try Free Web Tools Mentioned in This Guide
Tax Set-Aside Calculator
Log each payment and instantly see how much to move to savings for taxes.
Quarterly Tax Calculator
Estimate US self-employment quarterly tax payments so you're never caught by surprise.
Freelance Rate Calculator
Work out the hourly or day rate you need to charge to hit your income goal.
Frequently Asked Questions
Where should the set-aside money actually go?↓
A separate savings account you don't touch day-to-day is the simplest approach — out of sight keeps it from quietly being spent on operating expenses.
What if I set aside too much?↓
Excess becomes a bonus at tax time or rolls into next year's buffer — better than the alternative of coming up short and facing a scramble or penalty.