How much should you set aside for taxes on 1099 income?
Nobody takes tax out of your freelance or gig pay. So it's on you to save it. Type what you've made this year and you'll get one number to move into savings, plus what to send the IRS by the next due date.
- Tax year
- 2026 IRS rates
- Covers
- Federal tax
- Sign up
- None, it's free
Where your number comes from
Your set-aside has two taxes in it. Most people only expect one of them.
Self-employment tax is Social Security and Medicare. At a regular job your employer pays half and takes the other half out of your paycheck. When you work for yourself, you pay both halves. That's 15.3% on most of your profit, before income tax even starts.
Income tax comes second, and it's smaller than people fear. You only pay it on profit left after three things come off. The standard deduction, half of your self-employment tax, and the 20% business income deduction most freelancers qualify for.
If you also have a W-2 job, your employer already withholds tax on that pay. So the calculator only counts the extra tax your side income creates. That's the part you need to save yourself.
Want every line and every source? It's all on the page that shows our math.
- Profit from your workBox 1 minus box 2
- $36,000
- W-2 pay
- $0
- Self-employment tax15.3% of 92.35% of profit
- $5,087
- Half of that tax, deducted
- $2,543
- Standard deduction
- $16,100
- Business income deductionReduced at your income level
- $3,471
- Income you pay income tax on
- $13,885
- Income tax on everything
- $1,418
- Your set-aside
- $6,505
How much to save at each income level
Quick answers for a single filer with no other job, based on profit after costs. Married or have a W-2 job too? Use the calculator above, because both change the number.
| Profit | SE tax | Income tax | Set aside | % of profit | Per quarter |
|---|---|---|---|---|---|
| $10,000 | $1,413 | $0 | $1,413 | 14.1% | $353 |
| $20,000 | $2,826 | $199 | $3,025 | 15.1% | $756 |
| $30,000 | $4,239 | $942 | $5,181 | 17.3% | $1,295 |
| $40,000 | $5,652 | $1,775 | $7,427 | 18.6% | $1,857 |
| $50,000 | $7,065 | $2,667 | $9,732 | 19.5% | $2,433 |
| $60,000 | $8,478 | $3,559 | $12,037 | 20.1% | $3,009 |
| $75,000 | $10,597 | $4,898 | $15,495 | 20.7% | $3,874 |
| $100,000 | $14,130 | $8,235 | $22,365 | 22.4% | $5,591 |
| $150,000 | $21,194 | $16,413 | $37,608 | 25.1% | $9,402 |
Three things that catch new freelancers out
These are the surprises behind most "I owe how much?" moments in April.
15.3%
The tax nobody warns you about
Self-employment tax sits on top of income tax. On $40,000 of profit it comes to about $5,652, even if your income tax is small.
$400
Small side money still counts
Once your profit reaches $400 for the year, you owe self-employment tax on it. That's true even if you have a full-time job too.
$2,000
No 1099 doesn't mean no tax
From 2026, a client only has to send you a 1099-NEC once they pay you $2,000 or more. It used to be $600. Money below that is still taxable.
When to send the money
Saving it is step one. The IRS also wants it during the year, in four payments called estimated taxes. If you'll owe $1,000 or more when you file, skipping them can mean a penalty.
Each payment is roughly the "each quarterly payment" figure in the envelope above. For a version that uses last year's tax to find the smallest safe amount, try the quarterly payment calculator.
- April 15, 2026
Covers January to March - June 15, 2026
Covers April and May - September 15, 2026
Covers June to August - January 15, 2027
Covers September to December
More ways to work out your tax
Each one answers a different question. All use the same 2026 figures.