A common starting point is to set aside 25% to 30% of your net profit for taxes. It’s a rule of thumb, and your real number depends on how much you earn, your filing status, your deductions, your state and any W-2 income. For a single freelancer with no other income and profit under about $130,000, that range covers federal and state tax together in the states compared below. At higher profits, or on top of a W-2 job, it can fall short.
For a single freelancer with no other income, federal tax for 2026 comes to roughly 17% to 27% of your net profit between $30,000 and $200,000, and the percentage rises with income. That covers self-employment tax and federal income tax, with every figure from the IRS’s 2026 tax rate schedule and worksheets in Form 1040-ES. State income tax, where your state has one, comes on top.
Calculate your own number
Enter your income, expenses, filing status and state to see what to set aside and what to pay each quarter. It’s the same calculator as the Freelance Tax Calculator, which has more examples and the assumptions in full. If you’re still deciding what to charge, the freelance hourly rate calculator works backwards from the take-home pay you want and builds the tax into the rate.
Your estimate
Recommended to set aside
$0 · 0% of net profit
About $0 a month. The tax rate rounded up to the next whole percent, as a small cushion.
Total estimated tax
$0
0% effective rate
Estimated quarterly payment
$0
Four payments of this size
- Net freelance profit
- $0
- Self-employment tax
- $0
- Federal income tax
- $0
- Additional Medicare Tax
- $0
- State income tax
- $0
- Total estimated tax
- $0
Quarterly federal payments for 2026 are due April 15, June 15, September 15, January 15, the last one in January 2027. Many states have their own dates.
How the numbers are figured
This is an estimate, not tax advice. The state figure is approximate, and the calculator page explains how it’s built.
Federal tax by income level
| Net profit | SE tax | Income tax | Total | Share of profit | Per payment |
|---|---|---|---|---|---|
| $30,000 | $4,238 | $943 | $5,181 | 17.3% | $1,295 |
| $50,000 | $7,065 | $2,667 | $9,732 | 19.5% | $2,433 |
| $75,000 | $10,598 | $4,898 | $15,496 | 20.7% | $3,874 |
| $100,000 | $14,129 | $8,235 | $22,364 | 22.4% | $5,591 |
| $150,000 | $21,194 | $16,413 | $37,607 | 25.1% | $9,402 |
| $200,000 | $28,234 | $25,196 | $53,430 | 26.7% | $13,358 |
- $30,000 profit17.3%
- SE tax
- $4,238
- Income tax
- $943
- Total federal
- $5,181
- Per quarterly payment
- $1,295
- $50,000 profit19.5%
- SE tax
- $7,065
- Income tax
- $2,667
- Total federal
- $9,732
- Per quarterly payment
- $2,433
- $75,000 profit20.7%
- SE tax
- $10,598
- Income tax
- $4,898
- Total federal
- $15,496
- Per quarterly payment
- $3,874
- $100,000 profit22.4%
- SE tax
- $14,129
- Income tax
- $8,235
- Total federal
- $22,364
- Per quarterly payment
- $5,591
- $150,000 profit25.1%
- SE tax
- $21,194
- Income tax
- $16,413
- Total federal
- $37,607
- Per quarterly payment
- $9,402
- $200,000 profit26.7%
- SE tax
- $28,234
- Income tax
- $25,196
- Total federal
- $53,430
- Per quarterly payment
- $13,358
Estimated with the 2026 Form 1040-ES worksheets and tax rate schedule: single filer, sole proprietor, no other income, $16,100 standard deduction, 20% qualified business income deduction, no credits, retirement contributions or health insurance deduction. Federal only: state and local income tax are not included. Rounded to the dollar.
The rate climbs with income for two reasons. Self-employment tax takes a nearly flat ~14% of profit up to the Social Security cap, while income tax is progressive, so each extra dollar is taxed at a higher bracket. At $30,000, self-employment tax is most of the bill. At $200,000, income tax is almost as large as the self-employment tax.
How the numbers are figured
Each row follows the same steps as the IRS’s 2026 Estimated Tax Worksheet. This is the $100,000 row in full:
- 1$100,000
Net profit
- 2$14,129
Self-employment tax
$100,000 × 92.35% = $92,350; × 12.4% = $11,451 + × 2.9% = $2,678
- 3−$7,065
Deductible half of SE tax
$14,129 × 50%, rounded
- 4$92,935
Adjusted gross income
- 5−$16,100
Standard deduction (single, 2026)
- 6−$15,367
QBI deduction
20% × the smaller of $92,935 or $76,835
- 7$61,468
Taxable income
- 8$8,235
Federal income tax
$5,800 + 22% × ($61,468 − $50,400)
- 9$22,364
Total federal tax
$8,235 + $14,129
- 1022.4%
Share of net profit
$22,364 ÷ $100,000
Rounded to the dollar at each step, as on the IRS worksheets. Same assumptions as the table above.
The inputs, all for 2026 and all from IRS sources:
- Self-employment tax: 12.4% Social Security plus 2.9% Medicare on 92.35% of net profit, with Social Security capped at $184,500 of earnings, per the Form 1040-ES worksheet. Half is deductible. See Self-Employment Tax Explained for the details.
- Standard deduction: $16,100 for single filers, per Form 1040-ES.
- Qualified business income deduction: up to 20% of QBI, limited to 20% of taxable income, per the IRS. Every row in the table stays below the 2026 threshold of $201,750, where extra limits start to apply (Rev. Proc. 2025-32).
- Tax brackets: the 2026 Schedule X (single) rate schedule printed in Form 1040-ES.
- Additional Medicare Tax (0.9% above $200,000 for single filers, per Publication 505): it doesn’t apply to any row, because even at $200,000 of profit, net earnings are $184,700.
The same steps at every income level in the table above:
| Net profit | Half of SE tax, deducted | Taxable before QBI | QBI deduction | Taxable income | Income tax |
|---|---|---|---|---|---|
| $30,000 | $2,119 | $11,781 | $2,356 | $9,425 | $943 |
| $50,000 | $3,533 | $30,367 | $6,073 | $24,294 | $2,667 |
| $75,000 | $5,299 | $53,601 | $10,720 | $42,881 | $4,898 |
| $100,000 | $7,065 | $76,835 | $15,367 | $61,468 | $8,235 |
| $150,000 | $10,597 | $123,303 | $24,661 | $98,642 | $16,413 |
| $200,000 | $14,117 | $169,783 | $33,957 | $135,826 | $25,196 |
$30,000
- Half of SE tax, deducted
- $2,119
- Taxable before QBI
- $11,781
- QBI deduction
- $2,356
- Taxable income
- $9,425
- Income tax
- $943
$50,000
- Half of SE tax, deducted
- $3,533
- Taxable before QBI
- $30,367
- QBI deduction
- $6,073
- Taxable income
- $24,294
- Income tax
- $2,667
$75,000
- Half of SE tax, deducted
- $5,299
- Taxable before QBI
- $53,601
- QBI deduction
- $10,720
- Taxable income
- $42,881
- Income tax
- $4,898
$100,000
- Half of SE tax, deducted
- $7,065
- Taxable before QBI
- $76,835
- QBI deduction
- $15,367
- Taxable income
- $61,468
- Income tax
- $8,235
$150,000
- Half of SE tax, deducted
- $10,597
- Taxable before QBI
- $123,303
- QBI deduction
- $24,661
- Taxable income
- $98,642
- Income tax
- $16,413
$200,000
- Half of SE tax, deducted
- $14,117
- Taxable before QBI
- $169,783
- QBI deduction
- $33,957
- Taxable income
- $135,826
- Income tax
- $25,196
Same method as the table above and our set-aside calculator. Taxable before QBI is profit minus half of SE tax minus the $16,100 standard deduction (Form 1040-ES). Rounded to the dollar at each step. Add each row's income tax to its SE tax from the first table to get the total.
What these percentages include, and what they leave out
Every figure above includes self-employment tax, federal income tax after the standard deduction and the QBI deduction, and the deduction for half of the self-employment tax. At $100,000 of profit that half is $7,065, so income tax is figured on $92,935. It lowers income tax only; Self-Employment Tax Explained covers why. They leave out state and local tax, credits, retirement contributions, the health insurance deduction and any wages on your return. Each is covered further down.
What state income tax adds
Nine states don’t tax earned income: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming (Tax Foundation). Everywhere else, a state income tax adds to your percentage. Some states use one flat rate, others use brackets, and each has its own standard deduction and exemptions.
The table shows the combined federal and state share for a single filer in three states with different structures. Illinois has a flat rate, while California and New York use brackets. The state figures are an estimate built from each state’s published 2026 schedule, so they leave out local income taxes, such as New York City’s.
| Net profit | No state tax | Illinois | California | New York |
|---|---|---|---|---|
| $30,000 | 17.3% ($5,181) | 21.4% ($6,416) | 17.9% ($5,364) | 20.3% ($6,090) |
| $50,000 | 19.5% ($9,732) | 23.8% ($11,887) | 21.2% ($10,580) | 23.3% ($11,644) |
| $75,000 | 20.7% ($15,496) | 25.1% ($18,801) | 23.8% ($17,860) | 24.9% ($18,663) |
| $100,000 | 22.4% ($22,364) | 26.8% ($26,819) | 26.8% ($26,777) | 26.8% ($26,807) |
| $150,000 | 25.1% ($37,607) | 29.6% ($44,363) | 30.9% ($46,342) | 29.9% ($44,792) |
| $200,000 | 26.7% ($53,430) | 31.2% ($62,486) | 33.2% ($66,488) | 31.7% ($63,357) |
$30,000
- No state tax
- 17.3% ($5,181)
- Illinois
- 21.4% ($6,416)
- California
- 17.9% ($5,364)
- New York
- 20.3% ($6,090)
$50,000
- No state tax
- 19.5% ($9,732)
- Illinois
- 23.8% ($11,887)
- California
- 21.2% ($10,580)
- New York
- 23.3% ($11,644)
$75,000
- No state tax
- 20.7% ($15,496)
- Illinois
- 25.1% ($18,801)
- California
- 23.8% ($17,860)
- New York
- 24.9% ($18,663)
$100,000
- No state tax
- 22.4% ($22,364)
- Illinois
- 26.8% ($26,819)
- California
- 26.8% ($26,777)
- New York
- 26.8% ($26,807)
$150,000
- No state tax
- 25.1% ($37,607)
- Illinois
- 29.6% ($44,363)
- California
- 30.9% ($46,342)
- New York
- 29.9% ($44,792)
$200,000
- No state tax
- 26.7% ($53,430)
- Illinois
- 31.2% ($62,486)
- California
- 33.2% ($66,488)
- New York
- 31.7% ($63,357)
Run through the freelance tax calculator on this page: single filer, no other income, standard deduction, no retirement or health insurance deduction. Each cell shows the combined federal and state rate and, in parentheses, the dollar total. State figures are a simplified estimate and leave out local income taxes.
At $200,000 of profit, the combined share runs from 26.7% with no state tax to 33.2% in California. At lower incomes the gap is smaller, and states can differ a lot from one another. If you live in a state with a local income tax, add that on top.
A system for setting money aside
- Estimate your net profit for the year. Use last year’s as a starting point, adjusted for what you expect to change.
- Find your percentage in the table, enter your own numbers in the Freelance Tax Calculator, or work out the exact payment with Quarterly Estimated Taxes for the Self-Employed. Add your state’s income tax if you have one.
- Move that percentage of every client payment into a separate savings account the day it arrives. Doing it with each payment means the money is there when a deadline comes.
- Pay your estimated taxes from that account on each due date. The dates are in Estimated Tax Deadlines for 2026.
- Check your pace once a quarter. If income is running ahead of your estimate, raise the percentage for the rest of the year.
What makes your number higher or lower
The table is a starting point, not your actual bill. Yours will differ with:
- Business deductions. Tax is figured on net profit, so every legitimate expense lowers both income tax and self-employment tax. The home office deduction and business mileage are two that people often miss.
- Retirement contributions. Solo 401(k) and SEP IRA contributions lower your income tax. They don’t reduce self-employment tax, which is why a Solo 401(k) doesn’t cut self-employment tax. The Self-Employed Retirement Contribution Calculator estimates how much you can put in, and Solo 401(k) vs. SEP IRA compares the two.
- A W-2 job or a spouse’s income. Extra income pushes your self-employment profit into higher brackets. Wages also use up part of the $184,500 Social Security cap, which only changes the Social Security part of SE tax once wages and profit together pass it.
- Filing status. Married filing jointly has a $32,200 standard deduction for 2026 and wider brackets. Head of household has a $24,150 standard deduction.
- Children. The child tax credit is $2,200 per child under 17 for 2026, and part of it can be refunded.
- Health insurance. The self-employed health insurance deduction, which you figure on Form 7206, lowers income tax but not self-employment tax. If you buy a marketplace plan, see the ACA marketplace guide.
- The QBI deduction. It takes up to 20% off your income tax base while taxable income is under the threshold, and it’s already in every figure above. See the QBI deduction guide.
- Your business structure. At higher profits, an S corporation election can change the self-employment tax. LLC vs. sole proprietorship explains why an LLC alone doesn’t.
The same $75,000 of net profit comes out differently in eight situations. Every row was run through the calculator above. With no state tax and no other income the total is $15,496, or 20.7%. A $50,000 W-2 job raises it to $21,215, or 28.3%, because the profit is taxed on top of the wages. A $10,000 Solo 401(k) contribution lowers it to $14,536, and one child as a head of household lowers it to $12,417.
| Situation | SE tax | Federal income tax | State tax | Total | Rate | Each quarter |
|---|---|---|---|---|---|---|
| Single, no state income tax | $10,598 | $4,898 | $0 | $15,496 | 20.7% | $3,874 |
| Same, in Illinois | $10,598 | $4,898 | $3,305 | $18,801 | 25.1% | $4,700 |
| Same, in California | $10,598 | $4,898 | $2,364 | $17,860 | 23.8% | $4,465 |
| Single with a $50,000 W-2 job | $10,598 | $10,617 | $0 | $21,215 | 28.3% | $5,304 |
| Married, spouse earns $60,000 | $10,598 | $6,691 | $0 | $17,289 | 23.1% | $4,322 |
| Head of household, one child | $10,598 | $1,819 | $0 | $12,417 | 16.6% | $3,104 |
| Single, $10,000 into a Solo 401(k) | $10,598 | $3,938 | $0 | $14,536 | 19.4% | $3,634 |
| Single, $8,000 of health insurance premiums | $10,598 | $4,130 | $0 | $14,728 | 19.6% | $3,682 |
Single, no state income tax
- SE tax
- $10,598
- Federal income tax
- $4,898
- State tax
- $0
- Total
- $15,496
- Rate
- 20.7%
- Each quarter
- $3,874
Same, in Illinois
- SE tax
- $10,598
- Federal income tax
- $4,898
- State tax
- $3,305
- Total
- $18,801
- Rate
- 25.1%
- Each quarter
- $4,700
Same, in California
- SE tax
- $10,598
- Federal income tax
- $4,898
- State tax
- $2,364
- Total
- $17,860
- Rate
- 23.8%
- Each quarter
- $4,465
Single with a $50,000 W-2 job
- SE tax
- $10,598
- Federal income tax
- $10,617
- State tax
- $0
- Total
- $21,215
- Rate
- 28.3%
- Each quarter
- $5,304
Married, spouse earns $60,000
- SE tax
- $10,598
- Federal income tax
- $6,691
- State tax
- $0
- Total
- $17,289
- Rate
- 23.1%
- Each quarter
- $4,322
Head of household, one child
- SE tax
- $10,598
- Federal income tax
- $1,819
- State tax
- $0
- Total
- $12,417
- Rate
- 16.6%
- Each quarter
- $3,104
Single, $10,000 into a Solo 401(k)
- SE tax
- $10,598
- Federal income tax
- $3,938
- State tax
- $0
- Total
- $14,536
- Rate
- 19.4%
- Each quarter
- $3,634
Single, $8,000 of health insurance premiums
- SE tax
- $10,598
- Federal income tax
- $4,130
- State tax
- $0
- Total
- $14,728
- Rate
- 19.6%
- Each quarter
- $3,682
Run through the freelance tax calculator on this page with $75,000 of net profit in every row and the standard deduction. W-2 and spouse wages are assumed to be covered by withholding, so the figures are the extra tax the profit causes. Federal income tax is after credits. State tax is a simplified estimate. Retirement and health insurance rows assume no other deductions.
A W-2 job changes the percentage more than most people expect. The table assumes $50,000 of W-2 wages, with the tax on those wages covered by your paycheck withholding, so only the tax your freelance profit adds is counted:
| Net profit | Share, no job | SE tax | Income tax added | Total | Share, with job |
|---|---|---|---|---|---|
| $30,000 | 17.3% | $4,238 | $3,257 | $7,495 | 25.0% |
| $60,000 | 20.1% | $8,478 | $8,164 | $16,642 | 27.7% |
| $100,000 | 22.4% | $14,129 | $14,758 | $28,887 | 28.9% |
$30,000
- Share, no job
- 17.3%
- SE tax
- $4,238
- Income tax added
- $3,257
- Total
- $7,495
- Share, with job
- 25.0%
$60,000
- Share, no job
- 20.1%
- SE tax
- $8,478
- Income tax added
- $8,164
- Total
- $16,642
- Share, with job
- 27.7%
$100,000
- Share, no job
- 22.4%
- SE tax
- $14,129
- Income tax added
- $14,758
- Total
- $28,887
- Share, with job
- 28.9%
Computed with the same function as our set-aside calculator and the 2026 Form 1040-ES rates. Income tax added is the tax on the return with the profit minus the tax on the same return without it. This assumes the withholding on the wages is right. Federal only.
The self-employment tax doesn’t change, because $50,000 of wages leaves room under the $184,500 cap. The income tax does, because the profit is taxed on top of the wages.
When quarterly payments are due
Setting money aside is half the job. The other half is paying it. Federal estimated taxes for 2026 are due April 15, June 15 and September 15, 2026, and January 15, 2027. The periods aren’t equal quarters, which the chart shows.
- Payment 1
Due April 15, 2026
Covers Jan 1 – Mar 31 (3 months)
- Payment 2
Due June 15, 2026
Covers Apr 1 – May 31 (2 months)
- Payment 3
Due September 15, 2026
Covers Jun 1 – Aug 31 (3 months)
- Payment 4
Due January 15, 2027
Covers Sep 1 – Dec 31 (4 months)
Source: 2026 Form 1040-ES and IRS Publication 505 (2026). If a due date falls on a weekend or legal holiday, the payment is on time the next business day. You can skip the January payment if you file your full 2026 return by February 1, 2027 and pay the whole balance.
The calculator’s quarterly figure is your estimated total divided by four. State estimated payment schedules are separate, and some states don’t use the same dates.
What happens if you don’t set aside enough
You still owe the full amount when you file. The difference is what comes with it. If you underpaid during the year, the IRS can charge a penalty for underpayment of estimated tax, which you figure on Form 2210. If you can’t pay the balance by the filing deadline, a failure-to-pay penalty of 0.5% of the unpaid tax for each month or part of a month applies, up to 25%, along with interest (IRS).
You generally avoid the underpayment penalty if you owe less than $1,000 after withholding and refundable credits, or if you paid at least 90% of this year’s tax or 100% of last year’s (IRS Topic 306). If your 2025 adjusted gross income was more than $150,000 ($75,000 if you’re married filing separately for 2026), the prior-year figure is 110% instead of 100% (2026 Form 1040-ES). If your income is uneven, the annualized income installment method can lower the required payments. The safe harbor guide walks through the rules.
The 110% rule at higher incomes
A hypothetical example: a single freelancer expects $200,000 of net profit in 2026, with no other income and no state income tax. Their full federal tax comes to $53,430, or 26.7% of profit. Last year’s total tax was $40,000 and their 2025 AGI was over $150,000. These are assumed figures, not IRS ones.
| Option | Pay during 2026 | Each of 4 payments | Still owed when you file |
|---|---|---|---|
| Full estimated tax | $53,430 | $13,358 | $0 |
| 90% of this year's tax | $48,087 | $12,022 | $5,342 |
| 110% of last year's tax (2025 AGI over $150,000) | $44,000 | $11,000 | $9,430 |
| 100% of last year's tax (if 2025 AGI had been $150,000 or less) | $40,000 | $10,000 | $13,430 |
Full estimated tax
- Pay during 2026
- $53,430
- Each of 4 payments
- $13,358
- Still owed when you file
- $0
90% of this year's tax
- Pay during 2026
- $48,087
- Each of 4 payments
- $12,022
- Still owed when you file
- $5,342
110% of last year's tax (2025 AGI over $150,000)
- Pay during 2026
- $44,000
- Each of 4 payments
- $11,000
- Still owed when you file
- $9,430
100% of last year's tax (if 2025 AGI had been $150,000 or less)
- Pay during 2026
- $40,000
- Each of 4 payments
- $10,000
- Still owed when you file
- $13,430
Federal only. Run through our quarterly estimated tax calculator with the 2026 Form 1040-ES rules; payments rounded up to the dollar. The smaller of the two safe harbors is the one that applies: here 110% of last year's tax.
Paying $44,000 generally keeps this freelancer clear of the underpayment penalty, but they still owe $9,430 when they file. That’s why the percentages in this article aim at the full bill. The safe harbor only protects you from the penalty; the rest of the tax is still due in April.
If you’re behind late in the year
It happens: the year gets busy and nothing goes into the tax account. By November, three of the four 2026 due dates have passed. What the 2026 Form 1040-ES allows:
- Pay what you can now. The penalty “is imposed on each underpayment for the number of days it remains unpaid,” so a payment today stops it from growing on the missed installments. It doesn’t erase what has already built up.
- The January 15, 2027 payment is still ahead. Make it on time even if the earlier ones were late.
- Or file early. You don’t have to make the January 15 payment if you file your 2026 return by February 1, 2027 and pay the whole balance with it. It replaces only the January payment. The earlier ones are still late.
- If your income came late in the year, the annualized income installment method can lower the amounts due for the earlier periods. You claim it on Form 2210, Schedule AI. Our guide to the annualized method has a worked example.
A hypothetical example: a single freelancer with $75,000 of expected profit, no state income tax and no prior-year figure has paid nothing so far. The full federal tax is $15,496, about $3,874 a quarter if spread evenly. The penalty-safe minimum is 90% of that, $13,946, which the quarterly estimated tax calculator splits into four payments of $3,487. Since the first three are late, the practical move is to pay the missed amount now and the fourth by January 15, 2027, then start setting aside 21% of every payment from the first invoice of 2027. For other moves still open before December 31, see year-end tax moves for the self-employed.
Common mistakes
- Using the federal percentage alone. At $200,000 of profit, the combined share in the state table above runs from 26.7% with no state tax to 33.2% in California.
- Keeping last year’s percentage after a jump in income. The rate rises with profit: 17.3% of profit at $30,000 and 26.7% at $200,000 for a single filer, federal only.
- Forgetting the day job. $75,000 of profit costs 20.7% on its own and 28.3% on top of a $50,000 W-2 salary, because the profit is taxed in higher brackets.
- Treating the penalty minimum as the bill. In the $200,000 example above, paying the 110% minimum still leaves $9,430 to pay when you file.
