how much should I set aside from business revenue for taxes each month
Most small business owners and self-employed individuals should set aside between 25 and 30 percent of net profit for federal and state taxes combined, though the right number depends on your tax bracket, business structure, and deductions. If you are a sole proprietor or single-member LLC, self-employment tax alone runs about 15.3 percent on the first $168,600 of net earnings in 2024, before income tax is added on top. The safest habit is to transfer the set-aside into a separate savings account the day revenue hits your checking account, so you never accidentally spend it. Accurate expense tracking directly reduces your taxable income — every legitimate deduction you capture means less tax owed. Quarterly estimated payments are due in April, June, September, and January, so keep your set-aside account funded before each of those dates.
Where this fits
This answer is from our guide Best Expense Tracker for Small Business: What Actually Works in 2025 in the Small business spending series. For a working tool, try the free budget calculator.
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