How much should freelancers save for taxes?
Why the 30% rule of thumb is often wrong, and what federal set-aside rates look like at different incomes.
Updated September 28, 2026 · Not tax advice
You’ll often hear “save 25–30% for taxes.” It’s a safe starting point, but for many freelancers it’s too high, and for some it’s too low.
What actually sets your rate
- Your profit, not your gross. Expenses lower both income tax and self-employment tax.
- Self-employment tax: a flat 15.3% on 92.35% of profit. This is the part most new freelancers forget.
- Your income tax bracket, after the standard deduction and the 20% QBI deduction.
- Other income. A W-2 salary pushes your freelance income into higher brackets.
- Your state. Most states add their own income tax.
Typical federal rates for 2026
Share of gross income to set aside for federal taxes, with business expenses at 10% of income and no other job:
| Freelance income | Single | Married filing jointly |
|---|---|---|
| $30,000 | 15% | 13% |
| $60,000 | 18% | 15% |
| $100,000 | 19% | 17% |
| $150,000 | 22% | 18% |
Add your state’s income tax rate on top. In a state with a 5% rate, a single freelancer earning $60,000 might save about 23% in total.
With a full-time W-2 job as well, rates are higher, often 20–28% of the side income for federal tax alone, because it’s taxed at your top bracket.
Get your own number
The set-aside calculator gives your exact percentage and what to move from each payout. Then use the quarterly calculator to see what to send the IRS and when.
Make it automatic
Move the money the day it arrives, into a separate savings account. Rounding your rate up a couple of points gives you a cushion, and any extra is a nice surprise in April.
Setting your prices? The freelance hourly rate calculator builds taxes into your rate.