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How much should freelancers set aside for taxes?
Your self-employment tax and federal income tax for 2026, the share of each payment to put aside, and what each quarterly payment comes to.
Updated 2026-10-01
Set aside
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US federal only, single filer, 2026 rates. Not included: state and local tax, the qualified business income deduction, credits, or other income. An estimate, not tax advice.
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Track income and set-aside, freeHow freelance taxes work (US)
Employees have tax taken out of each paycheck, and their employer pays half of Social Security and Medicare. Freelancers pay both on their own:
- Self-employment tax: 15.3% (12.4% Social Security, 2.9% Medicare) on 92.35% of your profit. The Social Security part stops at $184,500 of earnings in 2026. Above $200,000 (single), another 0.9% Medicare applies.
- Income tax on your profit after the standard deduction ($16,100 single in 2026) and half of your self-employment tax.
- Quarterly payments: if you’ll owe $1,000 or more, the IRS expects estimated payments on April 15, June 15, September 15 and January 15.
A common rule of thumb is to set aside 25% to 30% of what you earn after costs. Higher earners and people in high-tax states often need more. Use the calculator for your own number, and check with an accountant.
Sources: IRS Topic 554, Self-employment tax; IRS 2026 inflation adjustments (Rev. Proc. 2025-32); 2026 Form 1040-ES; rule of thumb from Jackson Hewitt. Read October 1, 2026.
Questions
What percentage should a freelancer set aside for taxes?
A common rule of thumb is 25% to 30% of profit (income after business costs). Your real number depends on your income, state and deductions; the calculator gives a federal estimate.
What is the self-employment tax rate in 2026?
15.3% (12.4% Social Security up to $184,500 of earnings, plus 2.9% Medicare) on 92.35% of net self-employment earnings.
When are quarterly estimated taxes due?
For 2026: April 15, June 15 and September 15, 2026, and January 15, 2027.
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