How Much to Set Aside for Taxes (1099 Calculator)

Get one percentage to save from every client payment so your federal, self-employment and state taxes are covered when they come due.

By Thomas P. Checked against IRS Rev. Proc. 2025-32 & Schedule SE Updated

Your income

Set aside from every payment

—

That is $0 of every $1,000 you receive

Federal income tax share
—
Self-employment tax share
—
State tax share
—
Total to save this year
—

Estimate for information only — not tax, legal or financial advice. Federal figures for tax year 2026; state and local taxes are not included unless you enter them. Check your situation with a CPA or enrolled agent.

Why one percentage is not right for everyone

“Save 30% for taxes” is common advice, but the right number depends on how much you earn and your filing status. Self-employment tax is a nearly flat 14.1% of profit, while income tax rises with income. This calculator turns your expected yearly profit into one percentage you can move to savings every time a client pays you.

Typical 2026 set-aside rates (single, federal only)

Yearly profit Set aside
$30,000 about 17%
$60,000 about 20%
$120,000 about 24%

These assume no other income, the standard deduction and the 20% QBI deduction. Add your state’s rate on top. If you also have a W-2 job, enter your wages: your freelance income is then taxed at your higher bracket, so the percentage goes up.

Example — single, $60,000 expected profit, no W-2 job.
Self-employment tax ≈ 14.1% of profit; federal income tax ≈ 5.9%.
Set aside about 20% of every payment — $201 of each $1,000 — or roughly $12,037 over the year, before state tax.

A simple system that works

  1. Open a separate savings account just for taxes.
  2. Each time a client pays, move your percentage into it the same day.
  3. Pay your quarterly estimated taxes from that account.
  4. Recheck your percentage when your income changes a lot.

Anything left in April after you file is yours to keep.

Frequently asked questions

Should I set aside from revenue or from profit?

The percentage is calculated on profit. If you have significant business expenses, apply it to what is left after those expenses, or use a slightly lower rate on gross payments.

What about state tax?

Enter your state’s rate in the optional field. States without an income tax include Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming; New Hampshire does not tax wages or self-employment income.