TidyToolsHow much should a freelancer set aside for taxes?
As an employee, tax comes out of your pay before you ever see it. As a freelancer, the full payment lands in your account — and it's dangerously easy to treat all of it as yours. Then a tax bill arrives and the money is already spent. The fix is simple: every time you get paid, immediately move a set percentage into a separate "tax" savings account, and only spend what's left.
This calculator shows exactly how much to move. Enter the payment and your own estimated tax rate — the one that fits your country, income level, and situation — and it splits the payment into the part to save and the part to keep. Because you supply the rate, it works anywhere in the world.
Not sure of your rate? Many freelancers use a rough 25–35% as a safe starting buffer, but your real rate depends on your local income tax, self-employment/social contributions, and any deductions. Check your tax authority or an accountant for your actual figure — this tool doesn't know your local rules and isn't tax advice.
A worked example
You invoice a client $2,000 and estimate your all-in tax rate at 30%. Set aside $600 the moment it lands, and $1,400 is genuinely yours to spend or reinvest. Do this on every payment and tax season becomes a non-event — the money is already waiting.
Tips
- Use a separate account — out of sight, out of mind, so you don't accidentally spend it.
- Set aside on every payment, not once a year — it's painless in small chunks.
- Round up your rate slightly for a safety margin; a small surplus at tax time beats a shortfall.
- Revisit your rate as your income grows and you move into higher brackets.
Frequently asked questions
What percentage should I set aside for taxes?
It depends on your country, income, and deductions. Many freelancers use 25–35% as a rough buffer, but you should confirm your real rate with your tax authority or an accountant. This tool uses whatever rate you enter.
Is this a tax calculator for a specific country?
No — it's country-agnostic on purpose. You enter your own estimated rate, so it works anywhere. It does not apply any local tax rules and is not tax advice.
When should I move the money?
Ideally the moment each payment arrives. Transferring a fixed percentage to a separate savings account every time is the simplest way to never be caught short.