2026 tax year · US · Updated June 18, 2026

How Much Should I Set Aside for Taxes?

Self-employment income arrives with nothing withheld, so the tax is yours to save. The usual advice is “set aside 30%,” but that is a guess that can leave you short or tie up cash you did not owe. Enter your expected profit to see the exact share to hold back from every payment, plus what that works out to each week, month, and quarter.

Your numbers

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$
Your income after business expenses — roughly what you expect to clear from freelancing, gig work, or your side business.
Tax situation (advanced)
$
A day job or a spouse's income raises the bracket your side income is taxed at, so you may need to set aside more. $0 if self-employment is all you earn.
Why not just 30%? The 30% rule is a guess. Your real number depends on your profit and bracket — this works out the exact share so you neither overshoot nor come up short in April.

What to set aside in 2026

Set aside this share of every payment$21.65 out of every $100 of profit
21.6%
Total to set aside this yearOn $60,000 of self-employment profit
$12,989
Set aside per month
$1,082
Set aside per week
$250
Pay each quarterFour equal estimated payments (Form 1040-ES)
$3,247
Self-employment tax15.3% Social Security + Medicare on 92.35% of profit
$8,478
Federal income taxOn your profit, after the half-SE deduction and standard deduction
$4,511
Vs. the 30% rule: setting aside a flat 30% would park $18,000. That is $5,011 more than you actually owe — you would over-save by following it.

Federal only; most states tax self-employment income too (see our per-state side hustle pages). Estimates exclude the QBI deduction, tax credits, and itemized deductions, which usually lower the bill — so this leans slightly conservative, which is what you want when saving.

Why a percentage beats a flat dollar goal

Income from freelancing, gig apps, or a side business is rarely the same two months running. A fixed monthly savings target either falls behind in a busy month or over-saves in a slow one. A set-aside percentage scales with what you actually earn: move that share into a separate account every time you get paid, and the money is there when the quarterly bill lands.

The share is higher than many people expect because self-employment tax comes first. Before any income tax, you owe 15.3% on 92.35% of your profit for Social Security and Medicare, the part an employer would normally split with you. Income tax then stacks on top at your bracket. That is why even a modest-profit side hustle often needs more than 20% set aside, and why a high earner with a day job can need well over 30%.

Set it aside, then actually pay it

Saving the money is half the job; paying it on time is the other half. Because nothing is withheld, the IRS expects quarterly estimated payments once you will owe $1,000 or more for the year. Run your numbers through the quarterly estimated tax calculator for the exact Form 1040-ES payment and the safe-harbor minimum, and see the full federal picture on the 1099 tax calculator.

These are estimates, not tax advice. The figures are federal only and exclude state income tax, the QBI deduction, and tax credits, which usually lower the real bill. Unusual situations belong with a CPA.

Where these numbers come from

The set-aside amount is self-employment tax plus the federal income tax your profit causes at your bracket, divided into per-payment shares. The rates come from these primary sources:

Constants last verified against these sources on June 18, 2026. Every value is also pinned by an automated test suite that fails if a rate in the calculator drifts from the figure we transcribed from the source.

Frequently asked questions

How much should I set aside for taxes when I'm self-employed?
It depends on your profit and your tax bracket, but for most self-employed people the answer lands somewhere between 20% and 35% of net profit. That covers self-employment tax (15.3% on 92.35% of your profit) plus federal income tax at your bracket. This calculator works out your exact share instead of leaving you to guess. State income tax, where you have it, is on top.
Is the 30% rule for taxes accurate?
The 30% rule is a starting point, not a precise number. At lower profits it tends to over-save, because the standard deduction shields a chunk of your income from federal tax. But if you also have a W-2 job or a working spouse, your side income stacks on top of that other income and is taxed from a higher bracket, so 30% can fall short. The calculator above shows whether 30% over- or under-saves at your actual numbers.
What taxes am I setting aside for?
Two federal taxes. First, self-employment tax: 15.3% (12.4% Social Security up to the wage base, plus 2.9% Medicare) charged on 92.35% of your net profit. Second, federal income tax at your marginal bracket, after the deductible half of SE tax and the standard deduction. Most states also tax self-employment income, which this federal calculator does not include.
Should I set aside a percentage of gross or net income?
Net profit, meaning your income after business expenses. Expenses like mileage, supplies, software, platform fees, and a home office reduce your taxable profit, which reduces what you owe. If you set aside off gross revenue you will over-save. Enter your expected profit after expenses above for the right figure.
Where should I keep the money I set aside?
A separate savings account, kept apart from your spending money, is the simplest system that works. Move your set-aside percentage over every time you get paid. Then pay it to the IRS each quarter with Form 1040-ES rather than letting it build up until April, so a single large bill never catches you short.
Do I have to pay quarterly, or can I just save it for April?
If you expect to owe $1,000 or more in federal tax for the year, the IRS expects quarterly estimated payments, and skipping them can trigger an underpayment penalty even if you pay in full by April. The 2026 due dates are April 15, June 15, and September 15, 2026, then January 15, 2027. Setting aside the per-quarter amount above keeps each payment ready.

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