PocketSolo

Set aside for tax

How much to set aside for tax: self-employment tax calculator, 2026

United States · federal taxes only · tax year 2026 · estimate

Type what you earned and spent as a freelancer. The page shows the federal tax to set aside for the year, each quarter and each month, and how it adds up.

Your year

Total paid by clients in 2026, before expenses.
Software, equipment, insurance and other costs of the business.
Yearly W-2 pay, if you also have a job. It uses up part of the Social Security limit.
Filing status
Married filing jointly uses the joint brackets but counts only the income entered here. Your spouse’s income is not included.

Your estimate

Set aside for the year
$22,365
Each quarter
$5,591
Each month, if you save monthly
$1,864
Share of your profit
22.4%
Left after tax
$77,635

Where it goes

Self-employment tax (Social Security and Medicare)
$14,130
Federal income tax on your profit
$8,235
Left after tax
$77,635

This is an estimate for the United States, federal taxes only, tax year 2026.

General information, not tax, legal or accounting advice.

Your numbers stay in this page. Nothing is sent or stored.

What this page leaves out

United States, federal taxes only, tax year 2026. An estimate: state and local taxes, credits and special cases are left out (the full list is below).

  • State and local taxes.
  • Tax credits, such as the child tax credit.
  • Itemized deductions, and the deductions for self-employed health insurance and retirement contributions.
  • Other income: interest, investments, rent or gains from selling things.
  • Limits on the business income deduction (QBI) above its income threshold, and the special rules for some service businesses.
  • Married filing separately and qualifying surviving spouse.
  • Your spouse’s own self-employment, and income tax on wages (assumed withheld).
  • Alternative minimum tax, penalties and interest.

Estimated payments for 2026 are due April 15, June 15 and September 15, 2026, and January 15, 2027 (the January payment is not needed if you file by February 1, 2027 and pay the balance with your return).

How the figure is worked out

  1. Profit: $120,000 − $20,000 = $100,000.
  2. Earnings subject to self-employment tax: $100,000 × 92.35% = $92,350.
  3. Social Security: 12.4% × $92,350 = $11,451.
  4. Medicare: 2.9% × $92,350 = $2,678. Self-employment tax: $14,130.
  5. Half of the self-employment tax is deducted from your income: $7,065.
  6. Income after that: $0 wages + $100,000 profit − $7,065 = $92,935.
  7. Standard deduction (single): $16,100. Taxable income before the business income deduction: $76,835.
  8. Business income deduction (QBI): 20% of the smaller of your profit after that half, or your taxable income = $15,367. Taxable income: $61,468.
  9. Federal income tax on $61,468, bracket by bracket: $8,235.
  10. Total: $14,130 + $0 + $8,235 = $22,365. Divided by 4: $5,591. Divided by 12: $1,864.

Each part is rounded to the dollar, and the total is the sum of the rounded parts.

Figures checked against the IRS and Social Security Administration on October 29, 2026.

Why use this one

How self-employment tax and income tax add up in 2026

When you work for yourself, nobody withholds tax from what clients pay you. Two federal taxes are left for you to set aside: self-employment tax, which pays for your Social Security and Medicare, and federal income tax. This page estimates both from your profit. It covers the United States, federal taxes only, for the 2026 tax year; state and local taxes are not included.

The steps

  1. Profit. What clients paid you minus your business expenses.
  2. Self-employment tax. 92.35% of your profit is taxed at 12.4% for Social Security plus 2.9% for Medicare. It is owed once those earnings reach $400. For 2026 the Social Security part stops at $184,500 of earnings (wages from a job use up part of that limit). Medicare has no limit, and an extra 0.9% applies to earnings above $200,000 (single or head of household) or $250,000 (married filing jointly), less any wages.
  3. Half of that tax is deducted from your income before income tax is worked out.
  4. Standard deduction. $16,100 single, $24,150 head of household, $32,200 married filing jointly.
  5. Business income deduction (QBI). Many freelancers can deduct 20% of their business income. This page applies it when taxable income is at or below $201,750 (single or head of household) or $403,500 (married filing jointly), and does not apply it above that, where extra limits start.
  6. Income tax is worked out bracket by bracket on what is left, using the 2026 brackets for your filing status.

Worked example

Maya is single, brought in $120,000 and spent $20,000, so her profit is $100,000. She has no other job.

  1. Earnings subject to self-employment tax: $100,000 × 92.35% = $92,350.
  2. Self-employment tax: 12.4% + 2.9% of $92,350 = $14,130 (rounded to the dollar). Half, $7,065, is deducted.
  3. Income after that: $100,000 − $7,065 = $92,935. Minus the $16,100 standard deduction, $76,835.
  4. Business income deduction: 20% of the smaller of her profit after that half or $76,835, which is $15,367. Taxable income: $61,468.
  5. Income tax, bracket by bracket: $8,235.

Maya should set aside $22,365 for the year: $5,591 each quarter, or $1,864 a month. That is 22.4% of her profit, and she keeps $77,635.

When to pay

You pay as you earn, in estimated payments with Form 1040-ES. For 2026 the due dates are April 15, June 15 and September 15, 2026, and January 15, 2027. The January payment is not needed if you file your 2026 return by February 1, 2027 and pay the balance with it. A date that falls on a weekend or holiday moves to the next business day.

The IRS expects estimated payments if you expect to owe $1,000 or more after withholding. You generally avoid an underpayment penalty if what you paid in is at least the smaller of 90% of your 2026 tax or 100% of your 2025 tax (110% if your 2025 adjusted gross income was over $150,000). Self-employment tax counts toward that estimate. Check the IRS pages below for your own case.

Rounding

Each of the three parts (self-employment tax, Additional Medicare Tax, income tax) is rounded to the dollar and the total is their sum, so the page always adds up. The quarterly and monthly figures are the total divided by 4 and by 12, rounded to the dollar.

Questions people ask

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

There is no single percentage, because the share rises with income and depends on your filing status. In the worked example above it is 22.4% of profit; at higher or lower profits it changes. Type your own numbers in the calculator and use the dollar amount it gives.

Do I owe self-employment tax if I also have a job?

Yes, once your freelance earnings (92.35% of your profit) reach $400. Your wages use up part of the $184,500 Social Security limit for 2026, so if your wages are already above it you owe only the Medicare part on your freelance profit. Enter your wages in the optional box.

Why is only half of the self-employment tax deducted?

An employee’s employer pays half of Social Security and Medicare. When you work for yourself you pay both halves, and the tax rules let you deduct the half that an employer would have paid when working out your income tax.

Why does the page not apply the business income deduction at high incomes?

Above the income threshold ($201,750 single or head of household, $403,500 married filing jointly for 2026) the deduction can be limited by the kind of business and by wages paid. Those limits are not modelled, so above the threshold the page leaves the deduction out and tells you your real tax may be lower.

Does this include state income tax?

No. It covers federal taxes only. Many states have their own income tax, and some local governments do too, so check your state’s revenue department and set aside more if it applies.

Is this the amount I will owe on my return?

No. It is an estimate of the federal tax caused by your freelance profit, using the standard deduction and no credits. Your actual return can differ because of credits, other income, itemized deductions and the other items listed under “What this page leaves out”. General information, not tax, legal or accounting advice.

Sources and official links