---
title: "How much to set aside for taxes when self-employed"
description: "Free tax set-aside calculator for the self-employed. See how much of each client payment to save for US federal, self-employment and state tax."
canonical: "https://www.meadowdesk.com/tools/tax-set-aside-calculator"
last_modified: "2026-10-27"
---

# Tax set-aside calculator

Source: https://www.meadowdesk.com/tools/tax-set-aside-calculator

Free tax set-aside calculator for the self-employed. See how much of each client payment to save for US federal, self-employment and state tax.

Split every client payment into what’s yours and what’s owed, so April is boring instead of brutal. Pick a rate, enter a payment, move the difference.

## How to use it

1. Enter a payment as it lands in your account.
2. Choose how often payments like it arrive: weekly, monthly or quarterly.
3. Set your combined tax rate: self-employment tax plus federal and state income tax. Unsure? Start at 25–30%.
4. Move the set-aside to a separate savings account the same day, and pay your quarterly estimates from it.

## 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.