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.