Split a payment
Change any number and the result updates as you type.
Include income tax + self-employment / national insurance. When unsure, 25–30% is a safe park.
Move to your tax pot
$1,500.00
Keep $4,500.00 of this payment. Over a year that's about $18,000.00 set aside.
Take-home from this payment$4,500.00
Annual tax reserve$18,000.00
Everything stays in your browser. Nothing is sent or saved.
How to use the tax set-aside calculator
- Enter a payment as it lands in your account.
- Choose how often payments like it arrive: weekly, monthly or quarterly.
- Set your combined tax rate: self-employment tax plus federal and state income tax. Unsure? Start at 25–30%.
- Move the set-aside to a separate savings account the same day, and pay your quarterly estimates from it.
How the tax set-aside calculator works
The set-aside is one percentage of each payment. The hard part is choosing the percentage, so here’s what goes into it.
Set-asidepayment × combined tax rate
Combined rateself-employment tax (≈ 14.1%) + federal income tax + state income tax
Self-employment tax is 15.3%: 12.4% for Social Security and 2.9% for Medicare, charged on 92.35% of your net profit. That works out to about 14.1%. Income tax then depends on your bracket, your deductions and your state.
- Payment received
- $6,000
- Move to your tax pot (25%)
- $1,500
- Yours to spend
- $4,500
- Self-employment tax on $72,000 a year
- ≈ $10,173
- Set aside over a year
- $18,000
The other $7,827 goes towards federal and state income tax. If your state taxes income heavily, or your profit is higher, move the rate up.
Self-employed tax set-aside FAQ
What percentage should I set aside for taxes if I’m self-employed?
Many self-employed people set aside 25–30% of each payment. Self-employment tax alone is about 14.1% of profit; the rest depends on your federal bracket and your state. Higher earners and people in high-tax states may need 30–35%.
Why is self-employment tax 15.3%?
When you’re employed, you and your employer each pay half of Social Security and Medicare. When you work for yourself, you pay both halves. You can deduct half of it when you work out your income tax.
Do I have to pay estimated taxes every quarter?
Generally yes, if you expect to owe $1,000 or more for the year. Payments are due around April 15, June 15, September 15 and January 15 of the following year. Form 1040-ES has a worksheet.
How do I avoid an underpayment penalty?
Pay at least 90% of this year’s tax, or 100% of last year’s (110% if last year’s adjusted gross income was over $150,000), spread across the four deadlines.
Should I set aside tax on the whole payment, or only my profit?
Tax is charged on profit, which is income minus business expenses. Setting aside a share of every whole payment is simpler and errs on the safe side. Anything left over becomes a cushion, or next quarter’s payment.
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