what percentage of freelance income should I set aside for taxes
A common starting point for US-based freelancers is 25–30% of net profit, which covers both self-employment tax (15.3% on net earnings) and estimated federal income tax at a moderate bracket. If your state has an income tax, add another 3–10% depending on where you live. Once you've filed a full year of returns, your actual effective rate becomes a more precise guide. Keep the holdback in a dedicated savings account so it's never accidentally spent — treating that account as untouchable is the single most effective habit for avoiding a painful April surprise.
Where this fits
This answer is from our guide Safe to Spend Calculator for Freelancers: Know Exactly What You Can Use in the Freelancer spending series. For a working tool, try the free budget calculator.
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