How Much Should Freelancers Set Aside for Taxes? (US, 2026)

The scariest number in freelancing isn't a slow month — it's an April tax bill you didn't save for. Here's the simple version of doing this right.

The rule: 25–30% of profit

US freelancers pay income tax plus 15.3% self-employment tax (Social Security + Medicare). For most people earning $40k–$120k of profit, reserving 25–30% of net profit covers both. Profit = what you collected minus business expenses — not your gross invoices.

Quarterly due dates (2026)

Yes, the "quarters" are uneven. That's the IRS, not us.

The system

1. Open a separate savings account named TAXES.
2. Every time an invoice is paid, move your set-aside % there immediately — before the money feels like yours.
3. Each due date, pay from that account at irs.gov/payments.

Deductions people forget

Software subscriptions, a home-office percentage of rent and internet, professional insurance, courses, and payment processing fees. Track them as they happen — reconstructing a year of expenses in April is how deductions get lost.

This is education, not tax advice — a good CPA pays for themselves the first year.