Tax Set-Aside Calculator 2026

How much of each dollar of profit should go straight into a tax account? Get an effective percentage — not a rule of thumb. Plan & set aside; we don’t e-file.

By The PiggyMath Editorial Desk Last updated ✓ Independently verified against published IRS figures

How this is calculated

The same stack as our quarterly estimator: self-employment tax (15.3% of 92.35% of profit, with any W-2 wages offsetting the Social Security wage base), federal income tax on 2026 brackets after the standard deduction and a simplified 20% QBI deduction, plus your optional state rate on AGI. The headline is that total divided by net profit — the effective set-aside percentage.

Worked example: $80,000 of net profit, single, 5% state tax and QBI applied produces roughly $20,000–$22,000 of combined tax — about 25–27% to set aside, or around $1,700–$1,800 a month.

Your year

Set aside this % of net profit
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Annual tax
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Monthly set-aside
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Per quarter
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Where the set-aside goes

Self-employment vs. federal income vs. state

Why “25–30%” is only a starting point

Advice columns often say freelancers should set aside a quarter to a third of every payment. That range is useful when you have no better number — and useless once you do. A sole proprietor at $40,000 with no state tax sits near the low end; the same person at $120,000 in a high-tax state can clear 35%. The right figure is your own effective rate: total federal self-employment tax plus federal income tax plus state tax, divided by net profit.

This tool uses the same 2026 math as the Quarterly Tax Calculator — including the Social Security wage base, Additional Medicare, the standard deduction and a simplified QBI deduction — then expresses the answer as a percentage you can transfer the day you get paid. If you also have a W-2 job, enter those Social Security wages so the SE portion is not overstated.

How to use the percentage

Open a separate savings or checking account and move the percentage (or the monthly dollar figure) as soon as income lands. Paying estimated tax from that account on the April, June, September and January deadlines is then mechanical. Recalculate when profit, filing status or your state rate changes — a mid-year raise or a move across a state line is enough to shift the number by several points.

Frequently asked questions

How much should a freelancer set aside for taxes?
It depends on profit, filing status and state rate — not a flat 30%. This calculator combines 2026 self-employment tax, federal brackets and an optional state rate to give an effective percentage of net profit.
Is the set-aside the same as my quarterly payment?
Yes in total. Divide the annual figure by four for equal quarterly estimated payments, or by twelve if you prefer a monthly transfer into a separate tax account.
Does a W-2 job change the percentage?
It can. W-2 Social Security wages reduce the Social Security portion of SE tax and fill the Additional Medicare threshold, so the set-aside on freelance profit is often lower than for a full-time freelancer at the same profit.

Sources

Every formula on this page is checked against an independent implementation before publication. How we check our math →

Next steps

📌How Much to Set Aside (Guide)Turn the percent into a monthly habit and quarterly checklist.🧮Freelancer Tax CalculatorFull SE + federal + state + QBI picture if you want more inputs.📅Quarterly Tax CalculatorWhat to send the IRS each quarter — with deadlines and reminders.🛟Safe Harbor Tax CalculatorThe minimum you must pay this year to avoid an underpayment penalty.