Taxes

How Much Should a Freelancer Set Aside for Taxes?

For a single freelancer, federal tax in 2026 works out to roughly 17% to 27% of net profit between $30,000 and $200,000. Here's a table by income level, how we built it, and what moves your number up or down.

By Editorial TeamPublished September 23, 20262026 tax year

A pink polka-dot piggy bank on a wooden table, nosing a small pile of coins — Photo by Andre Taissin on Unsplash

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If you’re a single freelancer with no other income, federal tax for 2026 comes to roughly 17% to 27% of your net profit in the $30,000 to $200,000 range. The more you earn, the higher the percentage. That covers self-employment tax and federal income tax. State income tax, where your state has one, comes on top. The table below breaks it down by income level. Every figure comes from the IRS’s 2026 tax rate schedule and worksheets in Form 1040-ES.

Federal tax to set aside, by income level

How much federal tax to set aside in 2026 (single filer)

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

Our estimate using 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. Income tax is progressive, so each extra dollar gets 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 we got these numbers

Each row follows the same steps as the IRS’s 2026 Estimated Tax Worksheet. Here’s the $100,000 row in full:

Building the $100,000 row

1
Net profit
$100,000
2
Self-employment tax
$100,000 × 92.35% = $92,350; × 12.4% = $11,451 + × 2.9% = $2,678
$14,129
3
Deductible half of SE tax
$14,129 × 50%, rounded
−$7,065
4
Adjusted gross income
$92,935
5
Standard deduction (single, 2026)
−$16,100
6
QBI deduction
20% × the smaller of $92,935 or $76,835
−$15,367
7
Taxable income
$61,468
8
Federal income tax
$5,800 + 22% × ($61,468 − $50,400)
$8,235
9
Total federal tax
$8,235 + $14,129
$22,364
10
Share of net profit
$22,364 ÷ $100,000
22.4%

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.

A practical 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, or run the full quarterly estimated tax calculation for your situation. 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 per payment, rather than once a quarter, means the money is already there when a deadline comes.
Pay your estimated taxes from that account by each 2026 due date: April 15, June 15 and September 15, 2026, and January 15, 2027.
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. Common reasons yours will differ:

State and local income tax. Not included above. Depending on where you live, this can add nothing or several percentage points.
Retirement contributions. Solo 401(k) and SEP IRA contributions can reduce your income tax. Our Self-Employed Retirement Contribution Calculator estimates how much you can put in.
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.
Filing status. Married filing jointly has a $32,200 standard deduction for 2026 and wider brackets.
Credits and other deductions, such as the self-employed health insurance deduction or the child tax credit.

Setting aside isn’t the same as prepaying the minimum

The percentages above aim to cover your full federal tax bill. The IRS’s minimum prepayment to avoid a penalty can be lower. It’s the smaller of 90% of this year’s tax or 100% of last year’s (110% if last year’s AGI was over $150,000), per Form 1040-ES. You can prepay the minimum and settle the rest when you file, but that rest still has to come from somewhere. Setting aside the full amount means there’s no surprise in April. See Estimated Tax Deadlines for 2026 and the Safe Harbor Rule for how that minimum works.

Bottom line

For a single freelancer, putting aside about a fifth of net profit covers federal tax at moderate incomes, and closer to a quarter at $150,000 and up. Add your state’s income tax on top. Keep the money in its own account, pay it out each quarter, and adjust once a quarter as your income becomes clearer.

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This article is for general educational purposes only and isn't personalized financial, tax, or legal advice. Read our full Financial Disclaimer.

Frequently asked questions

Is 30% a good rule of thumb for freelancers?

For federal tax alone, 30% is more than most single freelancers in our table actually owe. Federal came to about 17% to 27% of net profit between $30,000 and $200,000. But state income tax comes on top, so 30% can be a reasonable all-in cushion depending on where you live. Setting aside a bit too much just means extra cash left over after you file.

Should I set aside a percentage of gross revenue or net profit?

Tax is based on net profit, meaning revenue minus business expenses. If you set aside a percentage of every payment you receive (gross), you'll over-save when you have big expenses. That's usually a safe mistake, but it can tie up cash you don't need to hold. The percentages in our table are percentages of net profit.

Where should I keep the money I set aside?

In a separate account from your everyday spending, so it isn't accidentally spent before each estimated payment is due. A savings account you don't touch for anything else is the simplest version.

What if my income is very uneven?

Set aside the same percentage of each payment as it arrives, and consider the annualized income installment method, explained in IRS Publication 505. It can lower the required estimated payment for periods when you earned less.

Do these numbers apply if I'm married?

Not directly. The table is for single filers. Married couples filing jointly get a $32,200 standard deduction for 2026 and wider tax brackets, and a spouse's income changes the picture. The same method applies, but the percentages will be different.

Sources

We cite official, primary sources for the figures and rules referenced in this article.

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September 23, 2026