# How much to set aside for taxes when you're self-employed

A plain guide to how much of each payment to save for taxes when you work for yourself, with 2026 examples at $30,000, $60,000 and $100,000 of profit.

Published October 25, 2026.

When you work for yourself, nobody takes tax out of your pay. So each time a client pays you, part of that money is not really yours. It belongs to the IRS. The safe habit is to move that part into a separate savings account straight away, before you [pay yourself](https://rightobooks.com/blog/how-to-pay-yourself-sole-proprietor/).

The question is: how much? People often say "save 30%". That is too much for many people and too little for some. This guide shows you how to find your own number. If you want it now, the free [self-employment tax calculator](https://rightobooks.com/tools/self-employment-tax/) works out your tax and a quarterly amount from your profit.

## The quick answer

For a single person with no other job, federal tax in 2026 comes to about:

| Yearly profit | Federal tax | Share to set aside |
|---|---|---|
| $30,000 | $5,181 | about 17% |
| $60,000 | $12,037 | about 20% |
| $100,000 | $22,365 | about 22% |

Then add your state's income tax, if your state has one. For many people the total is **20% to 25%** of profit.

These figures use the 2026 tax rules, the standard deduction and no other income ([Rev. Proc. 2025-32](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf)). Your number can be different. The rest of this guide explains why.

## Two taxes, not one

When you work for yourself, you pay two federal taxes on your profit:

1. **[Self-employment tax](https://rightobooks.com/blog/self-employment-tax-explained/).** This is Social Security and Medicare. It is about **14.1%** of your profit (15.3% on 92.35% of profit) ([IRS Topic 554](https://www.irs.gov/taxtopics/tc554)). It is the same rate whether you earn a little or a lot, up to $184,500 in 2026 ([IRS](https://www.irs.gov/instructions/i1040ss)).
2. **Income tax.** This goes up as you earn more. Part of your income is not taxed at all, thanks to the standard deduction ($16,100 for a single person in 2026) and the qualified business income deduction (up to 20% of business income) ([IRS](https://www.irs.gov/newsroom/qualified-business-income-deduction)).

Many people forget the first one. For a freelancer earning $60,000, self-employment tax is about 70% of the federal bill.

Our free [self-employment tax calculator](https://rightobooks.com/tools/self-employment-tax/) works out the first part for you.

## Start with profit, not sales

Tax is on **profit**: what clients paid you, minus what the business spent. If you earn $80,000 but spend $20,000 on the business, your profit is $60,000.

So start from your books. Take your profit so far this year and work out what it will be for the full year.

## An example

Maya is a freelance designer. (She is an example, not a real person.) She expects $60,000 of profit in 2026. She is single and has no other job.

- Federal tax: about $12,037, or 20% of her profit.
- Her state adds about 4%.
- She rounds up to **25%**.

Each time a client pays her, she moves 25% of the payment to a separate savings account that same day. When a [quarterly estimated tax](https://rightobooks.com/blog/quarterly-estimated-taxes/) payment is due, the money is ready.

## When you need to save more (or less)

- **You also have a job.** Your salary already uses the low tax brackets, so your business profit is taxed at a higher rate. You may need 30% or more. See [side hustle taxes](https://rightobooks.com/blog/side-hustle-taxes/).
- **You are married.** Your spouse's income changes the answer. Use your combined numbers.
- **You have children or put money in a retirement account.** Credits and deductions can lower your tax.
- **Your profit is high.** Higher brackets raise the share.
- **Your state.** Some states have no income tax. Others add several percent.

If more than one of these applies to you, a tax professional can give you a firm number.

## Saving is not the same as paying

Saving the money is step one. You still need to send it to the IRS four times a year. The simplest rule to avoid a penalty: pay last year's total tax, split into four payments. See our [safe harbor guide](https://rightobooks.com/blog/estimated-tax-safe-harbor/) and [how to pay online](https://rightobooks.com/blog/how-to-pay-estimated-taxes-online/).

## Keep your profit right

Your percentage is only as good as your profit number. Moving money to your tax savings account is not an expense, and moving it back to pay the IRS is not income. If your books count these moves the wrong way, your profit is wrong.

[Righto](https://rightobooks.com/) matches transfers between your own accounts, so they do not change your profit. See [transfers and owner money](https://rightobooks.com/help/transfers-and-owner-money/).

## What to do now

1. Find your profit so far this year and estimate it for the full year.
2. Find your share in the table above, or use the [self-employment tax calculator](https://rightobooks.com/tools/self-employment-tax/).
3. Add your state's rate.
4. Open a separate savings account for tax.
5. Move that share of every payment into it on the day you are paid.
6. Check your share again every three months.

[Righto](https://rightobooks.com/download/) is free, easy to use and needs no account.

## Sources

- [Topic no. 554, Self-employment tax](https://www.irs.gov/taxtopics/tc554), IRS
- [Instructions for Form 1040-SS (2025)](https://www.irs.gov/instructions/i1040ss), IRS
- [Revenue Procedure 2025-32 (2026 inflation adjustments)](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf), IRS
- [Qualified business income deduction](https://www.irs.gov/newsroom/qualified-business-income-deduction), IRS