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What percentage of my income should I set aside for taxes as a freelancer?

A common starting rule is to set aside 25–30% of your net self-employment income for federal taxes, bumping toward 35–40% if you're in a higher bracket or a high-tax state. The figure is higher than many expect because you owe both income tax and the full ~15.3% self-employment tax, with nothing withheld for you. The cleanest habit is to move that percentage into a separate savings account the moment each payment lands, then pay quarterly estimates from it — so the money is never "yours" to accidentally spend. Refine your percentage after your first full year, when you know your actual effective rate. If you also have W-2 income, you can sometimes cover the shortfall through extra withholding instead. Estimate your set-aside and quarterly payments with wealthserene.com/tools/self-employed-hub.

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Educational disclaimer. Everything on WealthSerene.com is educational and is not investment advice. Projections and calculations are illustrative; actual results depend on market conditions, your situation and factors outside this tool’s scope. For a decision specific to your situation, consult a qualified financial professional. View full disclosures