🧾 Tool

Freelance Tax Set-Aside Calculator

Every invoice that lands feels like income. Part of it isn't. This works out what to move into a separate tax pot the day you get paid, then keeps a running total so April is a receipt, not a surprise. Everything stays on this device: no account, no login, nothing sent anywhere.

Payment amount

What the client actually paid you, before you take anything out.

Business costs on this work

Rough share of the payment that goes on deductible costs — software, materials, mileage, fees. Leave at 0 if you track costs separately.

Your federal marginal rate

The bracket the next dollar you earn falls into — not your average rate.

State (and local) income tax

Your combined state and city rate. Nine states have no income tax on wages — put 0 if that's you.

Self-employment tax

Social Security and Medicare — 15.3% on 92.35% of your net profit. Untick only if this payment is W-2 or already had SE tax withheld.

Not tax advice. This is arithmetic on the numbers you type, meant to stop you spending money that was never yours. It uses your marginal rate rather than the full bracket calculation, ignores the standard deduction, credits, and any other household income — so it deliberately errs on the generous side. The 12.4% Social Security half of SE tax stops applying above the annual wage base, so very high earners will over-set-aside here. Confirm the real number with a tax professional before you file.

Why the "just save 30%" rule quietly fails

Thirty percent is a fine guess if you happen to be a single filer in a no-income-tax state at the 12% bracket. Move any one of those and it's wrong in a direction you won't notice until filing. Someone at 24% federal in a 5% state is closer to 40% once self-employment tax is in; someone whose work is 60% materials is closer to 18%. The gap between those two people is thousands of dollars a year, and the rule of thumb hides it.

The other half of the problem is timing. Tax on money you received in February is due long before the annual return, and the pot only works if it's a separate account you don't casually dip into. Logging each payment as it lands is the boring habit that makes the quarterly payment a transfer instead of a scramble.

How to use it

Set your rates once — federal bracket, state, typical cost share — then every time a client pays you, type the amount and hit calculate. Log it, move the money, forget it. The chart builds a picture of what your year actually looks like, which is also the best evidence you'll have when deciding whether your rates need to go up.

Frequently asked questions

How much should a freelancer set aside for taxes?

A common rule of thumb is 25-30% of profit, but the honest answer depends on your marginal federal rate, your state, and how much of the payment is eaten by deductible business costs. This calculator works it out from those three numbers instead of guessing.

Is my data sent anywhere?

No. Every figure stays in your own browser. There is no account, no upload, and no analytics on your numbers. Clearing your browser data clears the log.